Despite a slowdown in online growth and return to physical stores, we continue to move into an increasingly digital world. The pandemic shifted how consumers engage with brands, and this is only catalysed further with younger generations, i.e. digital natives, reaching their prime spending years.
This digital future offers numerous opportunities to interact, engage and acquire new consumers, one of these being through Retail Media Networks.
What is a Retail Media Network?
Retail Media Networks are, in essence, an advertising network of digital channels (e.g. websites, apps) offered by a retail company to third-party brands for their various advertising purposes. They therefore act as a website advertising platform, offering an opportunity for retailers and their partners alike to disseminate highly targeted marketing.
Despite their digital nature, Retail Media Networks are not a new idea. Amazon launched its Retail Media Network in 2012. However, they continue to develop and gain importance in our digital world, and other retail behemoths, such as Walgreens and CVS, launched their Retail Media Networks more recently.
In the DIY and home improvement industry the Home Depot and OBI are amongst the leading retailers already investing in and offering a Retail Media Network.
The Benefits of Retail Media Networks
Media investment in the retail sector is increasing. At a time in which budgeting is more difficult than ever, all stakeholders are considering where their marketing budget should be invested. Retail Media Networks provide an efficient and effective method of marketing and should therefore be high on the list of considerations.
Moreover, with the upcoming deprecation of third-party cookies, with major browsers phasing out third-party cookies in the coming years, Retail Media Networks may gain a new relevance.
Benefits of retail media for retailers, consumers and advertisers
One of the most important benefits of retail media for retailers is the new source of revenue that it offers. This source of revenue is increasingly relevant with the continued growth of e-commerce. The benefits for suppliers come largely in the form of the first party data that is provided and collected, as well as better understanding of shopper behaviour and trends. Finally, yet importantly, the benefits of retail media for consumers lie predominantly in the improved customer experience and better price control for customers.
How to establish a Retail Media Network
One of the most important steps in building a Retail Media Network is ensuring the right data about the customers is being collected. This relies on having a variety of physical and digital channels to create an accurate and personalised profile of consumers. Furthermore, the data collected must be analysed correctly.
Major Retail Media Networks are also influenced by social networking for retailers. Therefore, it is just as important to be active and engaging throughout a number of social media platforms and produce relevant and appealing content for consumers.
It is also crucial to be clear about what is wanted from the Retail Media Network prior to taking this venture. For example, goals can include increasing customer retention, deepening relationships with strategic suppliers, or even expanding relationships with new brands. These goals do not have to be isolated, however, having clear targets can ensure the Retail Media Network grows and delivers.
Successful Retail Media Networks take time to build, but there’s no reason to be intimidated by their complexity. Retailers are already using Retail media Networks to improve profitability and customer engagement, as well as to diversify their revenue streams, and suppliers’ engagement with Retail Media Networks can help improve their understanding of consumer needs and trends.
