Retail media is quickly becoming one of the most popular channels for media spending, with the expectation that it will surpass TV advertising spend for US consumer packaged goods companies within the next three years.
What Is Retail Media?
Retail media is an innovative form of digital retail marketing that allows brands to place advertisements on various retail websites and apps. This method is highly effective for connecting with customers by presenting targeted messages in an engaging way, right where they are browsing or shopping online.
The essence of retail media lies in its ability to precisely target the right customers at the opportune moment, enhancing the effectiveness of marketing campaigns. This targeted approach is not only efficient in reaching potential customers but also in optimizing ad spend and maximizing campaign results.
A critical component in leveraging retail media is the use of platforms like Mediatool. Mediatool stands out in its ability to aid brands and agencies in harnessing the full potential and benefits of retail media. It offers a comprehensive suite of tools that provide marketers with enhanced visibility and control over their advertising campaigns. Additionally, Mediatool offers valuable insights into campaign performance, helping marketers refine their strategies for optimal outcomes.
Including retail media in a brand’s digital advertising strategy can lead to numerous benefits. It provides access to first-party customer data, allowing for more personalized and effective ad placements. Retail media networks offer a variety of channels for advertising, including in-store ads, banner advertising on digital properties, and sponsored product listings.
Benefits of Retail Media
Retail Media is One of the Fastest-Growing Channels for Media Spend
Retail media is one of the fastest-growing media spend channels, and it is expected to surpass TV adspend for US consumer packaged goods corporations over the next several years.
- Retail media already represents 11% of global ad spending, and forecasts that this figure will grow 60% by 2027.
- Retail media ad spending at $101 billion in 2022 and projects it will rise to $160 billion by 2027.
- Amazon is already the third-largest ad platform in the USA, at 13% of digital ad spend in 2021, and is expected to rise to 15% by 2024.
This fast pace is starting to turn heads as French retailer Carrefour partners with Publicis Groupe to provide brands with a retail media platform.
As the world anticipates the end of third-party cookies, new strategies are taking form. Many companies are facing challenges reaching customers with targeted marketing campaigns, but thanks to retail media, companies are able to leverage retailers’ existing relationships with customers to help facilitate greater targeting thanks to retailer data.
Retail Media Market Shakeup: Publicis and Carrefour Joint Venture
In an effort to capture a larger share of the retail media market, Publicis Groupe and Carrefour have joined forces to provide customers with a comprehensive platform that offers data solutions and inventory management services.
This new joint venture will leverage Publicis and Carrefour’s existing relationships with its retailers to deliver highly targeted marketing campaigns for consumer packaged goods companies. By using a combination of data and insights, the partnership will be able to create personalized experiences tailored to the unique needs of each customer.
It is also expected that the new venture will drive increased growth, efficiency, and ROI for retailers and advertisers alike in Continental Europe, Brazil, and Argentina.
New Opportunities for Marketers
In addition to providing a comprehensive platform of services tailored to the needs of individual customers, this joint venture will also foster innovative collaborations between Publicis Groupe and Carrefour, allowing them to develop new retail media and data solutions that are tailored specifically for the European market.
Ultimately, this alliance promises to open up unprecedented opportunities for retailers and advertisers in the retail media space and will revolutionize the way businesses reach their target audience.
Factors Fueling the Expansion of Retail Media
The growth of the retail media industry is a remarkable phenomenon in the digital advertising landscape. Several key factors are driving this expansion, making retail media an increasingly attractive option for brands and retailers alike.
Increased Online Shopping:
The surge in online shopping has created a fertile ground and new revenue stream for retail media. As more consumers turn to online stores for their shopping needs, brands have more opportunities to reach relevant audiences through digital channels, including retail websites and apps.
First-Party Data Utilization:
With the impending phase-out of third-party cookies, the importance of first-party data has skyrocketed. Retail media networks leverage retailer’s first-party data to offer highly targeted ad placements, ensuring that brands can reach their target audience more effectively. This data-driven approach results in more personalized advertising experiences for consumers.
Expanding Retail Media Networks:
The emergence of major retail media networks has been a game changer. These networks provide a platform for brands to advertise across a range of digital properties, including online marketplaces, video streaming services, and social media platforms. The diversity of these networks enables brands to reach customers through various digital assets, including banner advertising, sponsored product listings, and video ads.
Evolution of Consumer Behavior:
The shift in consumer behavior towards digital spaces has played a significant role in the growth of retail media. Consumers are increasingly using digital channels for product research, price comparisons, and making purchasing decisions. Retail media ads placed in search results or on product detail pages can significantly influence these consumer decisions.
Emergence of New Revenue Streams:
Retail media has opened up new revenue streams for both retailers and the advertising industry. By leveraging their own data and digital shelf space, retailers can generate significant ad revenue. For the advertising business, retail media presents a fresh avenue for ad spend, offering more options for onsite and offsite advertising.
Advancements in Advertising Technology:
The continuous evolution of advertising platforms and technology has enabled more sophisticated and effective retail media campaigns. These advancements allow for more precise ad placements and better tracking of ad performance, helping brands optimize their advertising dollars.
Integration with Physical Stores:
Retail media is not limited to online environments. In-store advertising space and digital assets in physical stores are also part of this growing trend. This integration provides a holistic approach to reach customers, whether they are shopping online or in-store.
Collaboration with Brand Partners:
The collaboration between retail media networks and brand partners has been instrumental in driving growth. By working together, they can create tailored advertising campaigns that resonate with shoppers, enhancing the reach and effectiveness of retail media programs.
The growth of retail media is driven by a combination of factors, including the rise of online shopping, the strategic use of first-party data, the expansion of diverse retail media channels, evolving consumer behaviors, new revenue opportunities, advancements in advertising technology, the integration of digital and physical advertising, and strong partnerships between retailers and brands.
This growth signifies a major shift in the retail advertising landscape, offering exciting opportunities for those who can effectively navigate this new terrain.
The Best Retail Media Networks
When it comes to retail media, there are various networks available for brands to choose from. Some of the most popular networks include:
Amazon Advertising provides marketers with access to Amazon’s massive customer base, allowing them to promote their products directly to shoppers. With various ad formats and targeting options, Amazon Advertising will enable brands to create campaigns tailored specifically for the platform.
Everyone knows Amazon is an absolute behemoth in retail, and Amazon Advertising is on track to be just as successful. It doesn’t hurt that it’s backed by the endless coffers of Amazon and co.
When using Amazon Advertising, you can access several different options, such as display ads, sponsored products, and product listing ads. These allow you to target potential customers based on search queries, shopping behavior, and other criteria.
The second-largest retail media advertising network behind Amazon, Walmart Connect offers access to a huge customer base. With more than 240 million customers worldwide, Walmart’s retail media platform allows brands and agencies to target shoppers with hyper-relevant ads based on their purchase history and preferences.
Walmart Connect’s retail media network gives advertisers tools that enable them to create campaigns tailored to their customers’ individual needs. This helps brands and agencies maximize the impact of their campaigns while minimizing the cost.
Some of the offerings include:
- Targeted ads based on customer purchase history and preferences
- Ability to segment audiences for highly targeted campaigns
- Automated bidding system to ensure maximum ROI
- A/B testing capabilities to optimize campaigns
Walmart Connect is an excellent option if your business needs to reach a large audience quickly and efficiently.
Roundel is Target’s retail media network, offering brands and agencies a range of creative solutions for retail advertising on Target’s properties. The tools offered by Roundel make it easy for brands to create and manage campaigns optimized for Target’s audience.
For example, Roundel offers a suite of creative tools that allow brands to customize their campaigns for maximum impact. Additionally, Roundel provides detailed insights into the performance of campaigns, allowing marketers to refine their strategies and optimize their campaigns for better results.
What’s more, you can run display ads on Target’s properties and any of its 150+ retail partners, giving you a wide range of options—and reach.
Taking it a step further, Roundel’s CTV gives you even more access, enabling you to take advantage of TV advertising on some of the top streaming platforms, including Discovery and the Food Network, among others.
If you want to try your hand at traditional media advertising, Roundel is a great place to start. It offers the kind of retail media solutions that might be an excellent fit for your brand.
This is Home Depot’s in-house retail media platform, designed to help brands and agencies reach customers in the home improvement space. So if your business is in that space, Media+ is a great option.
This is especially true when you look at the numbers Home Depot reports to visit its online store every year—more than 2.2 billion! That leaves room for many potential customers, which is why it’s important to ensure your campaigns are optimized for success.
To help you with your retail advertising campaign, Media+ offers users essential tools like: onsite advertising, offsite, and email advertising. With these tools at your disposal, you can create highly-targeted campaigns tailored to your audience and goals.
Wayfair is an e-commerce company that offers a wide range of products for the home. Wayfair’s retail media network gives brands access to over 72 million unique shoppers every month.
With that kind of reach, brands can ensure that the right audience sees their ads. Plus, Wayfair’s platform makes it easy to track and measure the performance of ad campaigns so that marketers can optimize as needed.
If your business model frequently uses retail media platforms like Wayfair or Wayfair specifically, this is the one you want to check out. It gives you everything you need and more to help you get the most out of your retail media campaigns.
Kroger’s retail media network provides brands access to its stores, including Kroger and affiliated retailers. Brands can use this network to create campaigns tailored to their specific audience and goals.
Moreover, Kroger uses PromoteIQ to manage its retail media campaigns. This allows marketers to create and track ads that reach shoppers when they are in-store or online.
While largely focused on food and grocery products, Kroger’s network also offers opportunities for other types of products, so it’s worth checking out if you’re looking for a retail media network in your niche.
With installments in nearly 6,000 cities and based in over 750 stores, Instacart is one of the largest grocery delivery services in the US. It offers brands access to many customers, including millennials and Gen Zers.
As an online-only retail media platform, Instacart provides brands a great way to target customers who are already shopping online.
Granted, it’s best suited for businesses targeting a specific group of shoppers. But if you want to reach out to customers who are already shopping online with consumer packaged goods companies, then Instacart is the right media channel for you.
Before there was Amazon, there was eBay. Well, technically, Amazon came out a few months earlier than eBay, but eBay shot to the top sooner and gained a massive global following. And it remains a popular choice for marketers looking to reach shoppers worldwide.
Like all other businesses, eBay eventually felt the mighty weight of Amazon’s power. But that didn’t stop eBay from adapting to the changing online climate.
In fact, eBay would enjoy considerable growth in 2020, thanks to its strategic partnerships and its focus on retail marketing strategy (the pandemic didn’t hurt, either).
No matter your business niche, there’s likely a home for it on eBay. So if you’re looking to target shoppers worldwide, eBay should be at the top of your list.
Best Buy is another retail giant offering a powerful media platform for its product niche. It offers various features such as advanced targeting and personalization, real-time analytics, audience insights, and more. Brands can also take advantage of the retailer’s vast reach to target consumers across its expansive media channel.
There will always be a space for electronics, and Best Buy has a respectable grasp on that market. What’s more, competition in this space isn’t as fierce as in other retail media channels. Best Buy could be a great option to explore if you’re looking to target electronics buyers.
Retail Media Shows Potential
The retail media opportunity is gaining momentum, and more marketers are realizing the potential of leveraging retailers’ existing relationships to deliver targeted marketing campaigns. That’s why groups like Publicis and Carrefour have formed a joint venture to explore new ways to leverage retail media and create more personalized experiences for customers.
If you wish to improve your own marketing campaign efforts, be sure to use Mediatool to gain access to the very best in retail media technology.
Mediatool will help you reach customers more effectively and efficiently than ever before, with features like impactful campaign creation, actionable insight leveraging, and powerful optimization tools. The possibilities are endless, and you can be sure your campaigns will make a huge impact for your business.