The importance of retail media in brand and media planning
Retail media networks (RMNs) are a new way for retailers and brands to connect.
RMNs allow retailers to sell advertising space on their own ecommerce sites, and brands can use this space to reach consumers who are already interested in their products.
RMNs offer both retailers and brands advantages, but there are also challenges that need to be addressed.
Retail Media Networks enable brands to influence shoppers at the “digital shelf” point of consideration, while offering lower-funnel advertising opportunities to fill the gap left by cookies, as well as the opportunity to deliver performance insights to pricing and trade promotion management.
Those best placed to monetize their customer base through advertising possess both quantity and quality of first party customer data, heavy online traffic volumes, an advertising tech stack and an organizational commitment to building the business.
Source: Kantar, Merkle: “The Evolution of Retail Media Networks”
With digital retail media spend forecasted to grow more than 50% by 2027, brands should consider allocating larger amounts of their marketing budgets to this channel. If they are to succeed, Retail Media Networks will need to earn money from increasingly unified brand marketing budgets.
There is potential to close the measurement loop, streamline marketing, enhance omnichannel experiences, and perform critical tasks for operational efficiencies and business agility through real-time data sharing.
Despite retail media having less engagement and being more costly than other digital advertising, forecasts are strong. Shoppers demand personalized recommendations and services and seamless omnichannel experiences; data collected from retail media can help retailers provide them.
Retail media networks are the main way marketers purchase retail media globally. Brands must establish direct relationships and knowledge with retailer advertising teams to activate their strategies efficiently and realize the best ROI on their investment.
Retail Media Networks must become the best place for brand marketers to invest their budgets. Be mindful of balancing organic visibility with paid media and ensure that the paid media is highly relevant to the shopper’s current mission. In essence, they will stand or fall on their ability to demonstrate favorable return on ad spend (ROAS).
Globally ecommerce marketplaces and retailers' sites are key for shopper inspiration. Retail Media Networks create direct data partnerships, with the ability to share meaningful customer insights, seamlessly merging consumer and trade activity effectively around one consumer journey and one set of targets.
Digital platforms are particularly important to Southeast Asian shoppers. Retail Media Networks have the potential for precision targeting shoppers and influencing purchase moments. Creating and instantly converting demand at the point of discovery.
Retail Media Networks can be a game-changer through precision targeting of shoppers and influencing purchase moments. Brands should and will be called upon to cooperate with retailers’ media network divisions.
Retail Media Networks help brands reach a more engaged audience, measure the results of their advertising campaigns more accurately and build relationships with their customers. Utilize Retail Media Networks to:
Capitalize on shoppers being more receptive to ads when shopping than when they’re carrying out other non-shopping related activities.
Instantly convert demand created at the various stages of their buyer journey.
Unify data for a complete picture of the entire marketing funnel, enabling closed-loop marketing.
Realize new sales opportunities using trends and enabling innovations.
Understand attribution and ROAS by aligning ecommerce activation and shopper marketing data with advertising media investment data.
Measure the impact of advertising on in-store purchases and across longer decision cycles.
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Check out more of our Retail Media Networks coverage:
Unlocking the power of Retail Media Networks
The rise of retail media
A peek at the state of retail media
Strategies for retail media success
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