How Can You Benefit from Retail Media Networks?
Benefit from Retail Media Networks
Nowadays, there has been a lot of hype in marketing circles about retail media networks. But what are they, how do they work, and what benefits do they bring to your business? The fact is, retailers establish platforms on their sites, mobile applications, or other digital spaces within their networks and offer those to brands as a form of in-store advertising.
As evidence of the central role that retail media networks are playing in commerce, of late, Amazon reaped around $10 billion from advertising on their platforms. Other giant retailers, such as Walmart, Target, and Kroger, have had similar trends.
It is essential to highlight that the success of retail media networks, such as that of Amazon, during the Covid-19 global pandemic has inspired numerous other retail brands to invest in their own retail media networks infrastructure in an attempt to add to their revenue streams.
Furthermore, businesses are fast embracing retail media networks as an effective tool for marketing their products. For instance, an August-2020 survey from Merkle revealed that 85% of consumer packaged goods (CPG) intended to shift their marketing budgets to retail media networks, with as much as 52% planning to do so next year.
Advantages of retail media used for network connections
Of course, businesses would like to know the advantages of using retail media used for network connections. There are several of these.
Firstly, retail media networks target customers near the point of sale. These are customers who have a clear intention to buy. Therefore, using retail media networks results in a higher lead conversion rate for advertisers. It is an ideal opportunity to promote your brand.
The other benefit of retail media networks is that it gives advertisers access to first-party data. No doubt, in this technology-driven era, data is the new oil. It is one of the most reliable tools to make business decisions. First-party data is harvested from the visitors by the website owner, and it gives a great insight into the customers’ buying behavior, enabling advertisers to fine-tune their operations. It may include targeting different audience segments with highly personalized ad campaigns for maximum results.
Retail media networks used for network connections are also highly beneficial to retailers with customer loyalty programs. They avail the much-needed insights and advertising options as they capture critical biographic and demographic data in purchasing behavior.
How can you benefit from retail media networks?
With retail media networks fast becoming the new trend, it is essential to know how you can benefit from them. Several benefits come with utilizing retail media networks, and these are discussed in depth below.
Retail media networks offer retailers an opportunity to increase their revenue streams since advertising is big business. Competition has resulted in the profit margins for consumer packaged goods decreasing over the years, and retail media offers them an opportunity to add to their revenues.
It is also essential to note that the networks also offer retailers an opportunity to come up with the much-needed creative marketing tactics that are in tandem with modern trends. This happens because retailers also make money when other brands sell.
The networks are not only beneficial to advertisers and retailers, but they are helpful to the consumer as well. It can be argued that retail ,media networks offer price control for the consumer. When retailers are getting additional revenue from advertising on their platforms, they are less likely to increase their margins on products in an attempt to cover costs.
The practice also helps retailers enhance their online shopping experience. It helps a customer remember a related product that they may want to buy. It is an advantage that makes the whole shopping experience better.
It is paramount to note that retail media advertising also helps foster deeper and meaningful relationships between retailers and brands. Such a relationship is mutually beneficial and in the best interest of the consumer. Retailers and brands can use this relationship as an opportunity to come up with ideas that are more satisfying to the consumer.
Retail media networks also help advertisers get the much-needed data on the retail footprint. It is crucial for optimizing business operations and making the overall shopping experience better.
By embracing retail media advertising, brands have the opportunity to control the outlook of their products online. It will allow them to portray an image that they feel is in the best interest of the brand.
Finally, the strategy enables advertisers to manage their campaigns and measure their return on investment to see if the whole endeavor is yielding results.
What media are there in networking?
One of the most frequently asked questions reads what media are in networking. There are several of these. Almost all major e-commerce retailers have their media network. The most common of these are listed below:
- Amazon
- Walmart
- Chesapeake Media Group (Dollar Tree & Family Dollar)
- CVS Media Exchange
- Kroger
- Instacart
- Albertsons Performance Media
- Peapod Digital Labs Media (Ahold Delhaize)
Google is also in charge of the new trend:
- Google Ads for retail
- Google Analytics for retail
- Google Maps for retail
- Google Cloud for retail
Evolving media network
No doubt, it is paramount for businesses to keep pace with the prevailing trends in every area if they are to remain relevant. It involves quickly embracing shifts in matters, such as technological advancements and consumer behavior. They should ensure that they always resonate with the evolving media network.
All indications suggest that retail media networks will maintain their relevance to consumer packaged goods. It is partly because of the privacy-centered changes to third-party cookie policies that are taking effect online. Therefore, businesses must make strategic decisions, such as whether to embrace shopper or national media, do a retail media or brand campaign, and own or license a retail media network. Moreover, the good news is, businesses engage service providers to increase their knowledge base and obtain decision-making insights on retail media networks.