

The cost of goods is rising rapidly, driven by supply disruption and global instability. Retailer revenue and profit are decreasing as a result – so something needs to change.
Retail media is a form of advertising using a retailer’s digital properties. Relevant, targeted ads are blended natively throughout the customer shopping experience. This presents retailers with the opportunity to boost revenue. How? By offering partner brands paid options to have their products shown on the first page of a customer’s search results.
BCG estimates huge growth for retail media over the next five years. They anticipate the market will be worth $100 billion, accounting for over 25% of total digital media spend by 2026.
Retail media relies on first party data. The good news is you’re already capturing it – to understand customer behaviour and preferences. For example, what a customer buys or browses, how much they spend and how often they shop.
Retail media is contextually relevant: it connects with consumers at the point of purchase. Reaching a customer at the bottom of the purchase funnel is more likely to lead to a sale – versus reaching them when they’re walking down the street.
With the right tools and skills, first party data can be turned into incredibly valuable insight. For example, the recency, frequency, and value of customer transactions; customer lifetime value; or customer profiles and pen portraits. This insight can inform personalised future ads – improving customer experiences – and can also strengthen relationships with partner brands.
Times are tough, so marketing budgets are under pressure. Analysing first party data effectively means partner brands can identify their ideal customers, reach them with much greater certainty, then tailor communications to appeal to them. Accuracy is crucial, so choosing a decision intelligence partner like HyperFinity helps you fulfill the potential of this data.
Retailers need to demonstrate the value and ROI of retail media to partner brands. Our decision intelligence software uses AI and machine learning to accurately predict and understand customer behaviour, then track and report on success.
Customers demand seamless experiences, so personalisation is a must. Data science and AI helps you boost yield by showing highly targeted and relevant ads.