More and more people are making purchases online as the e-commerce sector expands quickly. The way that brands advertise their items...
More and
more people are making purchases online as the e-commerce sector expands
quickly.
The way that
brands advertise their items online is likewise influenced by this change in
consumer behavior.
Retail media
networks have become the driving force in the midst of this, changing how
companies market their goods and establish connections with final consumers.
Still, a
large number of vendors and marketers are unaware of the specifics of retail
media.
This article
will explain retail media networks and explain how using them might benefit
your company's expansion.
Quick
Guide
A Retail
Media Network: What Is It?
How Are
Retail Media Operated?
Retail Media
Networks' Advantages
What Kinds
of Retail Media Ads Are There?
Top 2024
Retail Media Networks
Trends in
Retail Media Networks
Final
Thoughts
A Retail
Media Network: What Is It?
Retailers
can sell third-party companies advertising space on their digital platforms
through the use of a retail media network.
The retail
media environment is growing in tandem with the growth of e-commerce shopping.
A survey
published by Insider Intelligence estimates that by 2023, US advertisers would
have spent about $30 billion on retail media search ads, or more than 27% of
all search ad spending.
Moreover, by
2025, this expense is projected to double.
It's
interesting to note that Amazon alone pays for 21% of these advertisements.
These
figures demonstrate the enormous potential that Amazon offers to advertisers.
Brands can contact their target audience precisely at the moment when they are
prepared to make a purchase thanks to the platform's wide reach.
How Are
Retail Media Operated?
Retailers
can sell third-party brands advertising space on their digital channels through
a retail media network.
Advertisers
work together with the retail media network to choose their target audience and
develop advertising strategies.
Next, in
order to build audience groups and present highly targeted advertisements, the
network obtains consumer data from the retailer.
Advertisers
can target particular product categories, attract a large audience, or show up
in search results by carefully placing their advertising on merchant platforms.
In order to
monitor the effectiveness of advertising campaigns, the network also offers
analytics and reporting tools.
The network
and the retailers both benefit from this scenario. Additional revenue streams
help retailers, and the network gets paid a commission to handle advertising
transactions.
All things
considered, a retail media network gives businesses the opportunity to
advertise where customers are already spending their time and offers data that
can be used to enhance marketing plans.
Retail
Media Networks' Advantages
Retail media
networks have an enormous effect on all parties involved in the eCommerce
sector.
Given the
shrinking profit margins in the consumer packaged goods (CPG) industry, it
offers Amazon merchants a fresh avenue for advertising.
Since
merchants want to prevent abrupt price hikes that could have a negative impact
on conversion and advertising revenue, this translates for customers into more
consistent and lower costs.
These highly
tailored ads also have the tendency to be less obtrusive and more relevant.
Additionally
altering the relationship between consumers and brands is retail media. Retail
media offers distinct benefits that make it well worth investing in, even
though it can take some time for companies to adapt to this paradigm shift.
Here are a
few of them:
Comprehensive
Data
Unlike
third-party cookies, which internet browsers are gradually eliminating, retail
media networks are able to get first-party data directly from their platforms.
This data is more trustworthy and adaptable.
Retail media
networks may gather quite different kinds of data. Should the network of your
choice offer a loyalty program, you might get access to comprehensive and
enlightening data about consumers. To optimize the impact of your
advertisements, you can utilize this information to target and customize them.
According to
eMarketer research, retail media networks are preferred by 62% of CPG brands
because to their extensive datasets. But not just CPG companies are making use
of retail media networks. According to a recent McKinsey survey, 75% of non-CPG
advertisers intend to increase their future spending on retail media networks.
Extreme
Personalization
In retail
media, hyper-personalization extends beyond just tailoring messages to boost
revenue and boost return on investment. Additionally, it gives them the chance
to tailor their messaging and offers to appeal to various audience segments.
Walmart
Connect serves as a prime illustration of that. Customers can be targeted by
advertisers according to several factors such as location and purchasing
habits. Highly customized advertisements can improve brand engagement and
conversion rates.
Retail media
networks can enable marketers to reach consumers with coupons, highly targeted
email promos, and alluring deals. Personalized goods promote growth and brand
loyalty by bringing in new clients and introducing existing ones to new
offerings.
Display
Ads at Appropriate Times
Retail media
networks put you in front of potential customers at their most likely-to-buy
moment. These folks peruse the marketplaces in search of something to purchase.
They will convert quickly if your product advertisement captures their interest
during this stage.
Retail media
advertisements are made to appear appealing and captivating on the internet.
They can assist you in raising brand recognition and online presence.
Simple
Analysis of Conversations
A retail
media network such as Amazon or Walmart hosts both sales and ad impressions on
the same platform. The precise advertisements, campaigns, or media outlets that
fueled the sales might also be held accountable for them.
This gives
you precise ROI information and permits you to allocate more funds to highly
effective advertising tactics that generate the greatest revenue.
What
Kinds of Retail Media Ads Are There?
Three
primary categories can be used to categorize retail media ads:
On-site
On the
retailer's platform, like Amazon or Walmart, on-site advertisements are
displayed. These could be search or display advertising that provide shoppers
with relevant goods and services.
Off-side
Through
agreements with retail media, off-site advertisements utilize the retailer's
data to display adverts on other platforms. They can aid in expanding the
retailer's consumer base and bringing them back to the website.
In-store
In-store
advertisements are those that are displayed within the retailers' actual
physical locations. These advertisements, which improve the shopping experience
and have an impact on decisions to buy, might be traditional or digital.
Top 2024
Retail Media Networks
The retail
media market is predicted to be more competitive than ever in 2023 as more
stores open up or establish their own media networks in an attempt to take a
piece of the rising e-commerce ad spend.
Based on
their capabilities, reach, and creativity, these are some of the leading retail
media networks for 2024.
Amazon:
With over
200 million active shoppers each month in the US alone, Amazon is without a
doubt the market leader in retail media. A wide range of advertising formats
and options are available on all of Amazon's properties, including video,
audio, sponsored brands, sponsored items, sponsored displays, and Amazon DSP.
eBay:
With more
than 180 million customers and sellers, eBay is a significant participant in
the retail media market. For companies and agencies, eBay provides a variety of
advertising options, such as eBay Partner Network, promoted listings, display
advertisements, video ads, and native ads. In order to maximize their
effectiveness, eBay also gives marketers access to its first-party data and
analytics tools.
Criteo:
Dynamic
creative optimization and retargeting are the areas of expertise for this top
advertising network. Delivering customized and pertinent online, mobile, and
linked TV advertisements, Criteo collaborates with more than 20,000 merchants
and brands globally.
Walmart:
With more
than 11,000 locations and an expanding online presence, Walmart is one of the
biggest merchants in the world. In 2019, Walmart Connect, its own retail media
network, was introduced.
Via
Walmart's online and physical channels, such as Walmart.com, Walmart app,
Walmart+, Walmart shops, Vudu, and Roku, advertisers may connect with millions
of consumers. In order to assist advertisers in targeting and measuring their
ads, Walmart Connect also makes use of powerful analytics and first-party data
from Walmart.
Wayfair:
With more
than 20 million active users in the US, Wayfair is one of the top online
sellers of furniture and home goods. Wayfair Media Solutions, its own retail
media network, was introduced.
Through
email advertisements, native ads, video ads, sponsored products, display ads,
and native ads on all of Wayfair's websites and apps, advertisers may reach
consumers who are home buyers. Additionally, Wayfair Media Solutions uses its
own algorithms and private data to show shoppers relevant and customized
advertisements.
Home
Depot:
With more
than 2,200 locations and a strong online presence, Home Depot is the biggest
home improvement retailer in the United States. In 2020, Home Depot established
Home Depot Media Network, a retail media network of its own. Through display
ads, sponsored items, video ads, native ads, and email ads on all of Home
Depot's websites and applications, Home Depot Media Network gives marketers the
opportunity to reach both experts and do-it-yourselfers.
Numerous
more retail marketing networks are available in the market, including Best Buy
Ads, CVS marketing Exchange, CitrusAd, Instacart, ePRICE, Roundel, and The
Trade Desk.
Trends in
Retail Media Networks
The
following are some of the major themes influencing the retail media environment
in 2023:
One issue
facing retail media is the fragmentation of publishers.
Brands must
navigate a complicated and fragmented ecosystem of publishers, each with unique
formats, analytics, and capabilities, as more retailers enter the retail media
field.
Furthermore,
every month for a period of one to two months, a new retail media network
appears, according to Merkle.
As a result,
it becomes more difficult for companies to organize, carry out, and evaluate
their campaigns across many channels and platforms.
Whether you
do it manually or through a third-party platform, the fragmentation issue is
out of control.
Brands must
take a comprehensive and integrated approach to overcome this obstacle.
More
controls are necessary due to rapid growth.
The Boston
Consulting Group projects that the retail media market will reach $100 billion
by 2026, growing at a rate of 25% annually.
It implies
that in the upcoming years, retail media will draw the interest of regulators,
customers, and trade associations.
Retailers
and brands must get ready for modifications to data governance, industry
standards, privacy regulations, and consumer expectations. Additionally, in
order for team members to successfully navigate the changing retail media
landscape, brands must invest in their education and training.
Amazon
Attribution will grow significantly.
It was
previously impossible for brands to market to consumers across various
platforms, but retail media has made it possible.
However, it
has become more challenging to gauge the effectiveness of these advertisements
due to their multiplatform distribution.
Brands can
assess how these non-Amazon advertisements affect sales with the help of Amazon
Attribution. Brands are able to increase their advertising efforts and develop
better strategies thanks to this knowledge.
Additionally,
in order to make Amazon Attribution more accessible to companies of all sizes
and categories, Amazon is trying to increase its functionality and availability
compared to previous years.
Improved
automation and AI are necessary for success.
2023's
keywords are automation and artificial intelligence. In order to improve the
effectiveness and performance of their campaigns, retailers and brands are
adopting these technologies.
AI has the
potential to greatly enhance campaign management for marketers and companies.
For example, sellers can use AI automation algorithms to tailor bids according
to context, consumer preferences, and business objectives.
Additionally,
you may use Picsart to rapidly and efficiently make professional product images
using AI, or ChatGPT to generate original ad copy for your products.
Social
commerce is becoming more widely used.
The practice
of social commerce has grown in popularity in recent years. Accenture predicts
that social commerce will increase three times faster than traditional
e-commerce, from $492 billion in 2021 to $1.2 trillion by 2025.
By 2025, it
is anticipated that social commerce in the US would grow to $107.17 billion.
Users can
now find, explore, and purchase things straight from their feeds on social
networking sites like Pinterest, Instagram, and TikTok. These platforms are
also developing their e-commerce capabilities.
Influencer
marketing is a tactic used by retailers and companies to connect with potential
customers on social media platforms.
As social
media platforms become more accessible to consumers, brands should consider how
they can use this information to better understand their target market and
develop more customized products.
Final
Thoughts
Retail media
network companies and marketers had a busy year in 2023, and they will continue
to do so in 2024.
Retail media
networks give brands new chances for advertising and help them sell more goods,
but are they able to handle the additional complexity?
Read More:
Amazon and Meta Join Forces: A Revolutionary E-Commerce Partnership
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