Why retail media?
Activate first party audiences and introduce an additional revenue stream.
Strengthen relationships with partner brands and consumers with relevant, targeted ads.
Serve customers the right ad, for the right product, in the right place, at the right time.
Hop aboard the retail media train.
What if you could generate revenue using the reams of first party data you collect all day, every day? Well, you can.
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.
Data makes all the difference.
Traditional marketing and advertising channels are reducing in effectiveness. A combination of oversaturated consumers, ineffective ad execution and the rising cost of media are all denting the impact of traditional channels and tactics. But there’s another way – retail media.
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.