Exploring Emerging Trends in Retail Media Networks

26 Jun 2023

Retail Media is one of the fastest growing sectors in digital. Retail Media Networks enable retailers to monetise their digital assets by providing advertising and marketing opportunities to brands, thereby creating a mutually beneficial ecosystem.

What is driving this for retailers? The pandemic was a large contributor and accelerated the role of eCommerce in buying behaviours, which in turn created a focus within retailers, that without change, they would be left behind.  

This combined with the simple truth that utilising existing 1st party data for advertising is a high margin business, thus creating an urgency to bring an offering to market.  

On the demand side, due to the deprecation of the cookie, advertisers are under increasing pressure to shift their digital strategies towards 1st party data solutions. The opportunity to tap into a potentially enormous pool of 1st party shopping data, at all stages of the funnel, is tantalising.

The combination of these supply and demand pressures is driving global growth in Ad spend "estimated to be 60% by 2027," according to GroupM Global Director of Business Intelligence Kate Scott-Dawkins. GroupM also estimate ‘Retail Media’ already represents nearly 10% of global ad spending.

In this article, we will delve into the emerging trends shaping the retail media network landscape and the impact they have on both retailers and brands.

Rise of Retail Media Networks

Retail media networks have witnessed exponential growth in recent years, driven by the increasing influence of e-commerce and the shift in consumer behaviour. Retailers recognize the value of their first-party data and the potential to leverage it for advertising purposes. This realization has led to the rise of dedicated retail media networks that offer targeted advertising solutions within the retail environment.

Integration of Online and Offline Channels

To deliver a seamless shopping experience, retailers are integrating their online and offline channels within their media networks. By combining data from various touchpoints such as e-commerce platforms, loyalty programs, and in-store interactions, retailers can offer personalised advertising across multiple channels. This integration enables brands to reach customers at different stages of their shopping journey, optimising their advertising efforts and driving higher conversion rates.

Enhanced Targeting Capabilities

One of the key advantages of retail media networks is the ability to leverage customer data for precise targeting. Retailers can tap into their vast customer databases to understand shopping preferences, purchase history, and demographic information. By combining this data with advanced analytics and machine learning algorithms, retailers can deliver highly targeted and relevant ads to consumers, resulting in increased engagement and higher ROI for brands.

Collaboration with Third-Party Partners 

To expand their reach and enhance their capabilities, retail media networks are forming strategic partnerships with third-party entities. These collaborations involve data providers, ad tech companies, and marketing agencies, among others. By leveraging the expertise and resources of these partners, retailers can offer more comprehensive and effective advertising solutions to brands while ensuring compliance with data privacy regulations.

Performance Measurement and Attribution 

With the growing emphasis on ROI, retail media networks are focusing on robust measurement and attribution frameworks. Retailers and brands are demanding transparent and accurate metrics to evaluate the effectiveness of their advertising campaigns. Retail media networks are leveraging advanced analytics tools and attribution models to provide detailed insights into campaign performance, enabling brands to optimise their strategies and allocate resources effectively.

Expansion into New Retail Verticals

While retail media networks initially gained popularity in traditional consumer goods categories, they are now expanding into new verticals such as healthcare, automotive, and financial services. This expansion allows retailers to diversify their revenue streams and offers brands an opportunity to target specific customer segments within these verticals. By utilising their existing infrastructure and customer insights, retailers can unlock new advertising possibilities and tap into niche markets.

In conclusion, as the retail industry continues to evolve, retail media networks are emerging as a powerful tool for brands to find a new data set to connect with consumers effectively.

By embracing these trends and leveraging the potential of retail media networks, brands can see a world of possibility beyond 3rd party data.. Something not to be missed!  

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