As brands navigate the challenges of modern marketing, retail media networks have emerged as an effective channel to promote products and drive sales. These networks offer valuable shopper data and precise targeting, making them a powerful tool for reaching the right audience at the point of purchase.
Skai empowers brands with cutting-edge technology and AI-driven insights to rise above the competition. We simplify the process, partnering with a vast network of retailers to streamline retail media campaign creation and measurement within a single, powerful platform.
Whether you are a B2C or a B2B marketer, understanding how these networks function can give you a leg up in your marketing strategy. Below, we will discuss the basics of retail media networks and how they can benefit your brand.
What is a Retail Media Network?
To understand how retail media networks operate on the most basic level, think about product placement, in-store signage, and special promotions in circulars that retail outlets have always offered brands in their physical locations. As more and more retailers offer their customers an online shopping experience, those advertising opportunities have moved online via digital ad space to feature sponsored products on websites and apps.
During the pandemic, many consumers unfamiliar with ecommerce became adept at everything from ordering groceries from their phones to buying tools on home improvement retail sites to redesigning their gardens.
As retail slowly moves back in-store, those newfound preferences for ecommerce do not seem to be subsiding. According to Insider Intelligence, U.S. ecommerce sales will reach $1 trillion in 2022, a figure pre-pandemic that was not expected until 2024. Even as consumers move back in-store to make their final purchases, they are still researching products online well before stepping foot in a store, making retail media advertising more important than ever.
Amazon Ads is perhaps the biggest example of a retail media network, giving sellers and brands quite a few ways to feature their products at companies in search results, banner ads, and even on competitors’ pages. However, many other businesses have entered the retail media network fold in recent years.
For example, Instacart, the grocery delivery app that saw unprecedented growth during the pandemic, is set to boost that growth even more with its retail media network, which, like Amazon, allows brands to place their products at the top of search results and offer in-app coupons to shoppers. The move is set to increase Instacart’s ad revenue by $700 million in 2022.
Benefits of a Retail Media Network
While it’s undeniable that retail media networks are great for retailers, what is in it for advertisers?
Well, according to Amazon, retail media network ads are useful not just for brand discovery but also for sales. A recent study found that 68% of its shoppers had discovered a new brand on its platform. So, it stands to reason that placing sponsored products directly in search results when shoppers want to discover them is an effective way to get noticed. Furthermore, Kantar’s analysis of mobile campaigns running on Amazon found a 450 percent increase in purchase intent compared to similar campaigns on other platforms.
The main purpose of advertising is ultimately to attract customers, and retail media networks offer consumer insights that other forms of advertising do not. As third-party data becomes more difficult to come by due to privacy regulations, retailers have begun to increasingly rely on first-party data or information that customers give voluntarily. All those loyalty programs, email lists, and purchase histories to which online retailers now have access mean that advertisers can deliver more accurate product recommendations and special offers than ever via retail media marketing.
Looking to stay up-to-date with the latest trends and insights in the retail media space? Look no further than Skai’s Retail Media Thursdays (RMT)! Each episode introduces a new thought leader in the industry, bringing their expertise and innovative ideas to the forefront. From discussions on the future of retail media to in-depth consumer behavior analysis, these thought-provoking conversations are a must-watch for anyone in the retail industry.
Don’t miss out on the opportunity to gain valuable knowledge and inspiration from these experts. Join Skai’s Retail Media Thursdays by checking out the blog and discovering the wealth of insights waiting for you.
Retail Media Measurement
Retail media measurement refers to the process of quantifying and analyzing the effectiveness and impact of advertising campaigns within the retail environment. In the realm of retail media, measurement is a crucial process that involves quantifying and analyzing the impact and effectiveness of advertising campaigns within the retail sphere. It entails systematically tracking and evaluating various metrics and key performance indicators (KPIs) to gain valuable insights into how well media initiatives are performing. These measurements encompass a range of aspects such as ad placement reach and frequency, consumer engagement and response, conversion rates, sales attribution, and return on investment (ROI).
To truly harness the power of retail media measurement, advertisers and retailers must leverage sophisticated data analysis techniques and tap into data from multiple sources, including online platforms and customer behavior tracking tools. This enables them to make well-informed, data-driven decisions, optimize marketing strategies, and effectively evaluate the impact of their advertising endeavors.
As the retail media channel continues its rapid growth, it becomes increasingly important for brands to elevate their measurement approaches. Adopting advanced and sophisticated methodologies to generate sales and secure and defend their rightful share of voice in the highly competitive retail landscape is crucial.
How to Get Started in Retail Media Marketing
Getting started with retail media marketing can be a game-changer for your brand in the rapidly growing retail media industry. It can be difficult for brands to choose which ones to use. Everyone from Amazon to Instacart to CVS now offers ad space.
Choosing wisely is about looking carefully at where products fit best, according to Tim Rogers, SVP and global general manager of omnichannel and CRM at media platform Criteo.
“Painting with a broad canvas, if 25% of my sales go through Amazon, I might put 25% of my investment there and 20% in Walmart and 15% and Target accordingly,” Rogers told AdWeek.
Download the whitepaper “Navigating the Retail Media Bang”
Each platform offers unique features and audience targeting options, so select the ones that best align with your brand and goals.
Once you’ve selected a retail media network, follow these steps to kickstart your marketing campaigns:
- Set up an account and complete your brand’s profile.
- Optimize your product listings with compelling titles, descriptions, and images, paying close attention to product page details.
- Define your target audience based on demographics, interests, and shopping behaviors to ensure you’re reaching relevant audiences.
- Determine your advertising budget and bid strategy, leveraging customer data when available.
- Create engaging ad content that showcases your products’ unique value proposition across various digital channels.
- Monitor your campaign performance regularly and make data-driven optimizations to improve your presence on the digital shelf.
Another factor to consider is exactly how and where ads can be displayed.
Home Depot, which has also seen its business boom due to the popularity of home renovations during the pandemic, offers many different ways for its advertisers to connect with its customers. The retailer’s advertising branch, Retail Media+, offers programmatic ads utilizing Home Depot’s first-party data and social media via platforms like Pinterest, Facebook, and even Google Shopping options. These expanded offerings are useful for seasonal advertisers whose sales increase during Home Depot sales events such as Spring Black Friday.
Implementing these best practices and continually refining your strategy will help you maximize your return on advertising spending and achieve your desired outcomes.
With so many options for retail media marketing, developing strategies for managing, optimizing, and automating campaign creation and execution across thousands of retailer and marketplace websites is an ever-increasing challenge for most advertisers. That’s why Skai has partnered with a growing list of retailers to help advertisers create and measure retail media campaigns across channels using a single advertisement management software.
Spearheading the Future of AI in Retail Media: Skai’s Visionary Approach
At Skai, we firmly believe that retail media, at its core, is still media. As the industry undergoes constant change and evolution, we are dedicated to expanding the realm of AI optimization. Our unwavering focus on media activation and improved performance remains instrumental in driving tangible results for our clients. With a strong foundation in AI and a resolute commitment to leading the industry in AI optimization, we are at the forefront of redefining how brands utilize retail media networks and are poised to shape the future.
In a recent report titled “The Next Big Thing: Where Generative AI’s First Areas of Innovation Will Impact Marketing,” our Chief Product Officer, Guy Cohen, shares key insights. Cohen emphasizes that by harnessing the power of AI-driven technologies, marketing professionals can streamline their workflows, enabling them to invest more time in optimizing strategies and enhancing overall performance and return on investment.
This perfectly encapsulates Skai’s philosophy and dedication to AI. We are relentless in our pursuit of remaining at the forefront of the industry by continually advancing our AI capabilities, extending far beyond retail media, and providing increasingly sophisticated solutions. Skai’s platform analyzes vast amounts of data to identify trends and patterns, enabling brands to anticipate market movements and adjust their strategies in real-time.
The future of digital marketing is brimming with promise, and we are thrilled to lead the way. If you are ready to unlock the potential of AI and leverage its capabilities to achieve your marketing objectives, Skai’s unique AI Optimization capabilities are the definitive solution. For more information on how we can help your brand grow your retail media marketing strategy, please contact us with questions or schedule a brief demo today.
Frequently Asked Questions
What are the benefits of advertising on retail media networks?
Advertising on retail media networks offers several benefits, including increased visibility, targeted advertising, access to valuable first-party data, improved return on advertising spend (ROAS), and enhanced brand awareness.
Why is it important to have a unified platform for managing multiple retail media networks?
As brands increasingly adopt retail media advertising across various retailers, managing campaigns on multiple platforms can become complex and time-consuming. A unified platform integrating different retail media networks offers centralized management, holistic data insights, and improved efficiency. Investing in a single platform for retail media network management, such as Skai’s omnichannel solution, can help brands save time, optimize performance, and achieve better results in an increasingly complex advertising landscape.
How can I target the right audience on retail media networks?
Retail media networks offer various targeting options based on demographics, interests, shopping behaviors, and purchase history. Leverage these targeting capabilities and first-party data to reach the most relevant audiences for your products.
