Retail Media Network
A retail media network is an advertising infrastructure that creates a collection of digital channels, such as websites and apps, that are offered by a retail company to third-party brands for a variety of advertising decisions for products. Purchasing ad space on a retail media network can help brands extend their digital marketing strategies.
What is Retail Media?
Retail media refers to a specific type of marketing targeted toward consumers who are nearing the end of their buying stage.
Retail media is the marketing at, or in proximity to, a customer’s decision point for making a purchase and can include in-store advertising, online shopping, rewards programs, and coupons. These forms of advertisement could be located on a retailer website or within their apps.
What is a retail media network?
To understand how retail media networks operate on the most basic level, think about the product placement, in-store signage, and special promotions in circulars retail outlets have always offered brands in their physical locations. As more and more retailers also offer their customers an online shopping experience, those advertising opportunities are now available online via digital ad space to feature sponsored products on websites and apps.
What are the benefits of retail media networks?
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 are looking to discover is an effective means of getting noticed. Furthermore, Kantar analysis of mobile campaigns running on Amazon found a 450 percent increase in purchase intent compared to similar campaigns on other platforms.
A main purpose of advertising is 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 of 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 before via retail media marketing.