From Retailer First-Party Data and Campaign Activation to Measurement, Incremental Sales and Profitable Growth
Introduction
Imagine L'Oréal
wants to increase sales of its skincare products through Douglas Germany.
Douglas has
valuable first-party customer data. It understands which customers purchase
skincare products, which shoppers regularly buy premium beauty products, and
which audiences demonstrate purchasing interest across different brands and
categories.
L'Oréal has its
own Google Ads account, advertising budget, product portfolio and customer
acquisition objectives.
Both companies
have valuable customer intelligence, but they see different parts of the
shopping journey.
Google Ads Commerce Audience Sharing introduces a way to
connect retailer first-party audiences with brand-managed advertising.
Eligible retailers and marketplaces can share selected
first-party audience segments with their advertising partners. Brands can then
activate those audiences through eligible Google Ads commerce media campaigns,
directing customers to the retailer's approved website.
The retailer controls which audiences are shared. The
brand manages its own advertising campaigns.
For brands with significant retail distribution, this
creates an opportunity to use retailer shopping signals in their Google Ads
activity while keeping the transaction within the retailer's commerce
environment.
The practical
questions are straightforward: What can retailers share? How do brands access
these audiences? How does the Google Ads setup work? Which campaigns can use
them? And what can both businesses measure?
I'll explore
these questions through a fictional collaboration between L'Oréal and Douglas
Germany.
Both companies
are real, but the collaboration, audience segments and campaign examples in
this article are illustrative.
01. What
Google Ads Has Introduced
Commerce
Audience Sharing allows eligible commerce partners, such as retailers and
marketplaces, to share first-party audience segments with advertising partners,
including brands and sellers.
There are two
distinct participants.
|
Participant |
Responsibility |
|
Douglas Germany: Commerce partner |
Maintains and shares selected first-party audiences |
|
L'Oréal: Advertising partner |
Uses
approved audiences in eligible Google Ads commerce media campaigns |
The customer
journey in our example would be:
Douglas
customer audience → L'Oréal Google Ads campaign → Douglas.de → L'Oréal product
purchase
The retailer
provides access to relevant audience segments, while the brand can use those
segments in its own eligible advertising campaigns.
There is an
important restriction.
Campaigns using
Douglas's shared audiences must direct traffic to the domain approved by
Douglas.
L'Oréal cannot
use those audiences to send customers to its own webshop.
The capability
is also limited to eligible commerce media network campaigns. It does not make
retailer audiences available across every Google Ads campaign.
This
distinction matters because Commerce Audience Sharing is specifically designed
around advertising products sold through commerce partners.
02. The
Business Opportunity: L'Oréal × Douglas Germany
Consider a
fictional scenario in which L'Oréal wants to promote three skincare products
through Douglas.
|
Product |
Illustrative price |
Advertising objective |
|
Daily Cleanser |
€25 |
Reach relevant skincare customers |
|
Vitamin C Serum |
€50 |
Drive
product discovery and purchases |
|
Skincare Starter Bundle |
€100 |
Promote higher-value product combinations |
Some shoppers
purchase skincare regularly. Others browse premium serums or buy products from
multiple competing brands.
These audiences
could be relevant to L'Oréal's advertising strategy.
Which
audiences could Douglas share?
|
Illustrative Douglas audience |
Potential use for L'Oréal |
|
Skincare purchasers |
Reach customers with demonstrated skincare purchasing behaviour |
|
Premium beauty shoppers |
Promote premium serums and bundles |
|
Beauty category browsers |
Reach customers showing interest in relevant products |
|
Repeat beauty purchasers |
Promote complementary products |
|
Previous L'Oréal purchasers |
Support relevant repeat-purchase or cross-sell activity |
The actual
availability of these audiences would depend on which eligible segments Douglas
maintains and chooses to share.
L'Oréal would
not automatically gain access to all Douglas customer audiences.
Douglas decides
which segments are shared, with which advertising partners, and can stop
sharing them later.
That retailer
control is a fundamental part of the capability.
03. What
Changes With Retailer First-Party Audience Sharing?
L'Oréal already
has access to its own first-party data, including eligible customer segments
from its direct customer relationships.
Douglas has a
different perspective.
It can
understand shopping behaviour within its retail environment, including customer
interest across brands and categories.
Commerce Audience Sharing allows these two sources of customer intelligence to support eligible advertising activity.
|
Audience source |
What it contributes |
|
L'Oréal first-party
audiences |
Brand-owned customer relationships |
|
Douglas shared audiences |
Retailer shopping and purchasing
signals |
|
Combined eligible
audiences |
Additional possibilities for audience
selection and campaign activation |
For example,
L'Oréal may want to reach Douglas customers who regularly purchase premium
skincare products but are not already known to L'Oréal through its direct
customer data.
Alternatively,
L'Oréal may want to promote a skincare bundle to an eligible segment of Douglas
shoppers with demonstrated category interest.
The feature
supports the use of shared commerce audiences alongside the brand's own
first-party data segments, subject to eligibility and campaign capabilities.
The value is in
bringing relevant retailer customer signals into the brand's advertising
activity without requiring the retailer to surrender control of its
audience-sharing permissions.
04. How the
Actual Google Ads Setup Works
The
implementation involves two businesses and their respective accounts.
In our example,
Douglas is the commerce partner providing the audience data. L'Oréal is the
advertising partner using it.
Step 1:
Establish the required account links
Before L'Oréal
can use Douglas's shared audiences, the relevant accounts must be connected.
|
Account
connection |
Purpose |
|
Douglas
Google Merchant Center ↔ L'Oréal Google Ads |
Establish the
required retailer Merchant Center connection |
|
Douglas
advertising data sharing account ↔ L'Oréal Google Ads |
Enable
approved audience sharing and relevant retailer conversion data |
Inside
L'Oréal's Google Ads account, the linking requests can be reviewed through:
Tools → Data
Manager → Connected products
For the
relevant Google Merchant Center and Advertising partners entries, L'Oréal
selects Manage & link, opens the Received tab and approves the pending
invitations.
The advertising
data sharing account connection can also create new retailer-reported
conversion actions in L'Oréal's Google Ads account.
Accepting the
links does not give Douglas direct access to manage L'Oréal's Google Ads
account.
Step 2:
Douglas shares its selected audiences
Douglas opens
Audience Manager in its advertising data sharing account.
The process is:
- Select the eligible audience
segments to share.
- Choose Share with partners.
- Select L'Oréal from the actively
linked advertising partners.
- Review the sharing details.
- Confirm Share.
Only actively
linked, eligible advertising partners appear in the sharing selection.
Douglas can
subsequently stop sharing a segment.
Step 3:
L'Oréal accesses the shared audiences
L'Oréal opens
Audience Manager inside its own Google Ads account.
The shared
Douglas audiences appear with a Shared badge.
L'Oréal can
identify the segments provided by Douglas and review available segment
information, including audience names, customer types, list sizes and
membership status.
Step 4: Add
the audiences to eligible campaigns
L'Oréal selects
the relevant shared audiences in Audience Manager.
It then chooses
Add to, selects the eligible campaigns and applicable targeting settings, and
confirms Add audience segments.
The audiences
can only be used in supported commerce media network campaigns that direct
traffic to the domain approved by Douglas.
The exact
audience targeting and application options depend on the eligible campaign
type.
The
implementation checklist
|
Requirement |
What L'Oréal and Douglas must confirm |
|
Account linking |
Both required connections are active |
|
Audience eligibility |
Shared
segments meet applicable requirements |
|
Audience permissions |
Douglas has approved the selected segments |
|
Campaign eligibility |
The
campaign supports commerce audience sharing |
|
Conversion reporting |
Relevant retailer-reported conversions are available |
|
Approved domain |
Campaign
traffic goes to Douglas's permitted website |
For Customer
Match audiences, both participating accounts must meet the applicable Customer
Match eligibility requirements.
This is
particularly important for larger brands working with multiple retail partners,
where account permissions, audience availability and destination restrictions
must be managed carefully.
05. From
Shared Audiences to Campaign Activation
Once the
account connections and audience permissions are established, L'Oréal can
incorporate the approved Douglas audiences into its eligible commerce media
activity.
The advertising
strategy should reflect the products being promoted and the shopping behaviour
represented by the available audience segments.
An
illustrative activation approach
|
Shared audience |
Product focus |
Advertising opportunity |
|
Skincare purchasers |
Vitamin C Serum |
Reach relevant category buyers |
|
Premium beauty shoppers |
Skincare Starter Bundle |
Promote higher-value products |
|
Beauty category browsers |
Daily Cleanser |
Reach customers exploring skincare |
|
Previous L'Oréal purchasers |
Complementary skincare products |
Encourage relevant additional purchases |
These are
potential audience-product combinations, not guaranteed targeting options or
performance outcomes.
The available
campaign types and audience controls must be confirmed within the eligible
commerce media setup.
What changes
in campaign planning?
The brand can
now consider retailer-supplied shopping audiences alongside its own eligible
first-party audiences.
This creates
additional possibilities for audience selection, product promotion and campaign
evaluation.
For example,
L'Oréal could compare the performance of different eligible Douglas audience
segments when promoting the same skincare product.
It could also
examine whether different product categories perform better with particular
retailer audience groups.
The important
operational distinction remains that the advertising is managed by L'Oréal,
while the customer purchases through Douglas.
06. What Can
Brands and Retailers Measure?
Commerce
Audience Sharing provides both participants with access to information relevant
to their roles.
However, the
brand and retailer do not receive identical access to each other's data.
|
Measurement area |
Douglas: Commerce partner |
L'Oréal: Advertising partner |
|
Audience segments |
Creates and controls sharing |
Accesses approved shared segments |
|
Audience information |
Maintains the first-party segments |
Views available shared segment details |
|
Campaign performance |
Can access relevant spend and performance metrics |
Reviews its own campaign performance |
|
Retailer conversions |
Provides relevant conversion data |
Can access retailer-reported conversion performance |
|
Domain permissions |
Specifies the approved destination |
Must use the permitted domain |
For L'Oréal,
the relevant campaign reporting can include advertising spend, impressions,
clicks, conversions and conversion value, according to the available campaign
and conversion configuration.
The
retailer-reported purchase conversions are especially relevant because the
transaction happens on Douglas.de rather than L'Oréal's own website.
Illustrative
campaign reporting
Suppose L'Oréal
runs an eligible commerce media campaign promoting its skincare products
through Douglas.
|
Metric |
Illustrative result |
|
Advertising investment |
€20,000 |
|
Clicks |
40,000 |
|
Retailer-reported purchases attributed to the
campaign |
2,000 |
|
Average order value |
€50 |
|
Attributed retailer sales |
€100,000 |
|
Reported ROAS |
5.0x |
These
hypothetical results demonstrate the reporting relationship.
L'Oréal manages
the advertising investment and can review relevant campaign performance.
Douglas
receives the customer traffic and processes the purchases on its website.
The feature
supports this collaboration through approved audience access and relevant
retailer conversion information.
The results
still need to be interpreted according to the actual conversion configuration
and reporting available to each partner.
07. What
Does This Mean for Retailers?
For retailers
such as Douglas, Commerce Audience Sharing provides a way to make selected
first-party audiences available to trusted advertising partners.
The retailer
can support brand-funded advertising that directs customers back to its own
commerce environment.
Three
opportunities stand out.
Stronger
advertising collaboration with brands
Retailers can
share relevant audiences with eligible brands that want to promote products
sold through their platforms.
Additional
traffic and sales opportunities
Brand-managed
advertising can direct shoppers to the retailer's website, where purchases take
place.
Control over
first-party audience access
The retailer
decides which eligible segments to share, which advertising partners receive
them, and when sharing should stop.
The retailer
also controls the approved destination domain.
This means
audience collaboration does not require the retailer to give the brand
unrestricted access to its underlying customer data or advertising account.
For retailers
working with many brands, the capability creates another way to support
commerce media partnerships while retaining control over audience-sharing
permissions.
08. What
Does This Mean for Brands?
For brands such
as L'Oréal, the main opportunity is access to retailer first-party audience
segments within their own eligible Google Ads commerce media campaigns.
That can be
useful when a meaningful proportion of sales occurs through retail partners
rather than directly through the brand's webshop.
Three
practical advantages
1. Access to
relevant retailer shopping audiences
L'Oréal can
potentially reach eligible Douglas audiences based on customer behaviour within
the retailer's commerce environment.
2.
Brand-managed advertising using retailer data
L'Oréal can
manage its own eligible Google Ads campaigns while using audience segments that
Douglas has approved for sharing.
3. Visibility
into retailer-reported purchase outcomes
The account
connections can make relevant retailer conversion information available for
campaign reporting.
This creates a
closer relationship between the brand's advertising activity and purchases
occurring through the retailer.
The brand can
also use shared commerce audiences alongside its own eligible first-party data
segments, subject to campaign support and applicable requirements.
For brands
selling through several retailers, the capability may support distinct
advertising collaborations with different commerce partners, each with its own
account links, audience permissions and approved destination.
09.
Practical Requirements and Limitations
The capability
creates new opportunities, but its use depends on several specific conditions.
|
Area |
Requirement or limitation |
|
Eligibility |
Shared audiences can only be used in eligible commerce media network
campaigns |
|
Account connections |
Required
Merchant Center and advertising data sharing links must be active |
|
Audience availability |
Retailers must maintain relevant eligible segments and choose to share
them |
|
Audience permissions |
Brands
only receive access to approved shared audiences |
|
Customer Match |
Both parties must meet applicable eligibility requirements when using
Customer Match |
|
Destination restriction |
Campaigns
using shared audiences must direct traffic to the approved retailer domain |
|
Reporting |
Each participant receives access to relevant information according to
its role |
|
Access control |
Retailers
can stop sharing audiences and account links can be managed or removed |
One
particularly important point is that Commerce Audience Sharing does not provide
a brand with general-purpose access to retailer audiences across its entire
Google Ads account.
The shared
audiences are specifically intended for eligible commerce media activity
connected to the approved commerce partner.
This is also
why the setup requires coordination between the retailer and the brand before
campaign activation.
10. The
Commerce Audience Sharing Opportunity
The fictional
L'Oréal and Douglas example demonstrates how the capability connects five
elements of a brand-retailer advertising collaboration.
|
Element |
What the feature enables |
|
Retailer first-party data |
Douglas can share selected eligible shopping
audiences |
|
Brand advertising |
L'Oréal can activate approved audiences in its own
eligible Google Ads campaigns |
|
Account connectivity |
Merchant Center and advertising data sharing
links support the collaboration |
|
Retailer purchase destination |
Customers are directed to Douglas's approved website |
|
Campaign measurement |
Relevant advertising performance and retailer
conversion information become available |
The opportunity
is especially relevant for brands with established retail distribution and
retailers that want to support advertising activity from their brand partners.
The practical
value comes from connecting customer audiences, advertising execution and
retailer purchase outcomes within an approved account-sharing arrangement.
Conclusion:
A New Connection Between Retailer Data and Brand Advertising
Google Ads
Commerce Audience Sharing introduces a new way for brands and retailers to
collaborate using first-party customer audiences.
Retailers can
share selected eligible segments with their advertising partners. Brands can
use those audiences through supported Google Ads commerce media campaigns while
directing shoppers to the retailer's approved website.
For retailers,
this creates another way to support brand advertising partnerships, generate
traffic and maintain control over audience access.
For brands, it
provides an opportunity to incorporate retailer shopping intelligence into
their own advertising activity and measure relevant purchase outcomes through
the commerce partner.
The operational
details are important. Account linking, audience permissions, campaign
eligibility, conversion reporting and destination restrictions determine how
the collaboration works in practice.
For performance
marketers managing brands with significant retail distribution, the capability
is worth examining because it connects retailer first-party audiences,
brand-managed paid media and retailer transactions more directly.
The
significance of Commerce Audience Sharing is the ability for retailers and
brands to use their respective strengths together: retailer customer
intelligence, brand advertising investment and a shared commercial objective of
driving product sales through the retailer's platform.
