Retail Media is e-commerce advertising of products or services, distributor websites or applications, or Marketplace. These advertising campaigns usually include banners on the home or sides, exclusive landings, and internal signage to promote the products.
This popular form of advertising is one more way to reach customers through segmentation, in spaces not specific to the brand, and is highly effective since the ads are shown at times when the customer has already decided to buy or when they are looking for something specific.
Purchasing advertising space on a retail media network offers brands an opportunity to advertise on a collection of digital channels.
How Retail Media works
Just like in a physical store where you have different products in the checkout line that encourage purchase, online stores can use this same format to promote items that are related, when using the payment gateway.
In addition, promotional banners can be included on the home page or on the page of specific products or categories, both on websites and applications.
Benefits of Retail Media
The use of retail media brings benefits for both brands, online stores and Marketplaces.
It can increase traffic to portals and online stores, due to the impact of the brands. In turn, the number of transactions and the average ticket increase. And it also contributes to a better user experience and navigability of websites and apps.
On the other hand, it increases the visibility of the brands’ products and contextualizes them with other related ones. Thanks to retail media, advertising investment can be amortized and processes automated, using data from the Marketplace itself.
Thanks to retail media, brands can advertise on channels where consumers are already present and contribute to their visibility in a way that is relevant to the user.
By using data from the Marketplace or online store itself, behavioral patterns of the audiences can be obtained that are useful to perfect the products or messages of the ads.
Challenges for Retail Media
As with many other forms of online advertising, retail media brings with it great challenges so that it can be fully utilized.
Know the opportunities
In order to take advantage of the different Retail Media environments, it is necessary to inform yourself about the uses and benefits of each location on digital platforms: web, email marketing, social media, blogs. And in the same way, it is necessary to be able to analyze consumer data in the CRM and carry out branding or performance strategies according to the consumer’s browsing time.
Align trade marketing and advertising
In large companies, a constant challenge is aligning communication channels with distribution agreements. In this way, brands will have the opportunity to know the consumer in depth thanks to the data obtained and impact them throughout the customer journey.
Retail Media as a channel of the media mix
To obtain a 360 impact on the consumer and obtain precise and effective segmentation, it is necessary to recognize the advantages of each medium. Thanks to retail media, you can reach a massive audience, segment it and obtain greater impacts, as well as obtain first-party data on user behavior.
Investment measurement
To obtain relevant results, it is necessary to analyze the data and be able to measure the investment and its return. Thanks to the retail media proposals, you can control the impact of the campaign both physically and online.
Collaboration between brands and retailers
The use of retail media brings benefits for both brands and retailers, but this requires working with transparency and collaboration, in order to promote the positive reach of this technology.
