What is Retail Media Network
One of the fastest-growing industries in the world is the Marketing and Advertising industry.
With the evolution of technology, people are now turning to the online mode of shopping. Let us how Retail Media Network is helping towards that.
With the online interaction fast overtaking the physical interactions, this means one thing for businesses- They need to adapt fast to this trend so as to make their business grow.
Failure to leverage on the Digital Marketing mode will mean the loss of customer and consequent dying of the Business.
In this era of Digital Marketing, Retail Media Network just makes sense.
What is Retail Media Network?
A Retail Media Network is when a retailer set advertising platform on their own platform (websites, app, YouTube channels) or any other digital platform in their network.
It allows those stores and brands to showcase to customers on their site the products they are advertising.
Ads can be displayed on so many pages including:
- The Home Pages
- Category Pages
- Products detail page
- Search Page
This helps advertisers to reach the shoppers at the different stages of the buyers’ journey.
Retail media works well because shoppers are more likely to click on ads when shopping than when doing things that not related to shopping.
Pros and Cons of the Retail Media Network
The retail media is changing the way shoppers and businesses interact these days. The question now is: Is the Retail media a good thing or not?
Lets take a look at the pros and cons of the retail media and see if i ist a good thing or not.
Advantages of the Retail Media
We are starting by looking that the advantages for the different parties involved.
This help retailers in creating a new stream of revenue. Advertising is a very huge business of over 560 Billion Dollars. The retailers have a chance to take their fair share of the $560 Billion.
The profit margin on Consumer packaged goods has taken a turn over the last few years. For retailers looking to increase their revenue, retail media is one ways to do that.
The retail media has opened up new possibilities as how retailers generate more revenue.
Buyers as well derive some benefits from the retail media.
One benefit is that it offers price control for the consumers. When retailers generate revenue from Ads, they will not be in haste to increase the prices of their products.
The second benefit is that retail media offers great consumer experience. While ads can sometimes be annoying, when done properly they help customers make better purchase decisions. It also reminds consumers of any related product they may want to purchase.
An advantage of the retail media for the advertisers is that it gives them access to first party data. First party data is the Data collected from the customers by the website owner.
First party Data is more original and reliable than other Data collected through other methods like cookies.
This Data is collected right when the customer is making a purchase; this gives them a chance to peep into customers’ buying behaviour.
This Data is important for personalization.
This is needed by advertisers so they can be able to display relevant ads to each customer based on their interests. This is only possible through getting the customers Data and analysing their buying behaviour.
The retail media is so important for brands because it helps them to tie an ad spend to sales. This is because sales go hand in hand with ads. This is easy to link a sale to a particular ad and action. It is very important to some decision making which are strategic such as resource allocation.
Although it is still evolving, retail media is proving to be a form of a powerful advertising method ready to change the narration in the online shopping world.
Cons of the Retail Media
With the promising future of retail media could it have any form of disadvantages?
One of the cons of it is that it gives more power to the big brands. It sets up an unequal playing ground for the smaller brands that don’t have the budget, the traffic and the tools to set up their own retail media network.
Another disadvantage is that it is new a field in the Digital Marketing industry that requires tools that almost all the retailers don’t have. For this, it is more of a learning curve for anyone going into retail media.
The Rise of Retail Media
Many businesses have already gone into the Digital means of transforming themselves before retail media came into the equation. They heavily invested in mobile apps where customers can order for products online and get it delivered to them right to their doorsteps.
When the Covid-19 pandemic hit and the lockdowns were imposed, these mobile app and website became instrumental to sales for the retailers. Research has shown that 80% of people now shop online and over 60% said they will keep shopping online even after the pandemic.
This has everything to do with retail media.
With the shift in traffic to the retailer websites and mobile apps, a new stage is set for new form advertising.
This form of advertising is in the form of a retail media network.
How to create a Retail Media Network
How can a business owner create a retail media network for his brand to boast sales? If you have brand with much traffic consider using retail media tools like Elevaate or Criteo.
These tools have the mechanisms in place to get your retail media off the ground and running in no time. It means you will have more time to focus on the business.
With the retail media tools, it is easy as applying to be part of their program. If you get approved, you upload your project and the network takes over from there.
Our world is fast changing. Very fast as if with the speed of light.
For businesses to grow they need to get used to the changing trends in the business world like buyers behavior.
This is one of the reasons to consider the retail media if you haven’t done so already.
This will help you have an edge over your competitors and help you reach and even more great number of potential buyers.
What is your experience with retail media if you have used one?
Please share with family and friends.