Retail media networks are changing the way brands connect with consumers.
By using data from retailers, these networks help advertisers create personalized and effective ad campaigns.
As retail media grows, it’s becoming a key part of digital advertising strategies.
This article will explain what retail media networks are, why they’re important, how they work, and their benefits.
We’ll also cover what to consider when choosing a retail media network, highlight the top networks, and look at niche retail media platforms.
Let’s explore why retail media networks are essential for modern advertising.
What is a Retail Media Network and How Do They Work?
A retail media network (RMN) is a platform owned by a retail company that allows advertisers to reach their target audience through various digital channels.
These networks leverage the retailer’s first-party customer data to deliver personalized advertising campaigns, helping brands connect with consumers at key points in their shopping journey.
By using RMNs, advertisers can place ads on a retailer’s website, app, or other owned digital properties, making it easier to reach relevant audiences.
Retail media networks work by centralizing marketing data from a retailer’s various digital channels. This data includes information from search result pages, product detail pages, and even ad placements on the retailer’s website.
By using this data, retail media programs can deliver highly targeted ads to consumers. Retail media ads can be placed both onsite (on the retailer’s website) and offsite (on third-party platforms), allowing advertisers to reach relevant audiences across multiple touchpoints.
Why is Retail Media Important?
Retail media is important because it offers a unique way to engage with consumers using first-party data. This data provides insights into consumer behavior, allowing advertisers to create more targeted and effective marketing campaigns.
Retail media networks are benefitting retailers, advertisers, and consumers by improving ad relevancy, increasing sales, and enhancing the shopping experience.
With over 200 retail media networks globally, this industry continues to expand, becoming an essential part of digital advertising strategies.
Additionally, A Deloitte survey found that 64% of executives at US retailers plan to implement a retail media network by the end of 2024, underscoring the growing recognition of its value.
What is an Example of Retail Media?
A retail media network typically includes a platform where advertisers can place ads on the retailer’s website, app, or other digital properties.
These ads are personalized using the retailer’s first-party customer data to ensure they are relevant to the consumer. Retail media can also extend to offsite advertising on third-party platforms, reaching consumers beyond the retailer’s owned channels.
This approach allows advertisers to connect with the retailer’s customer base, creating effective and engaging advertising campaigns that drive both online and in-store sales. In 2024, retail media is projected to account for 20% of US ad spending, highlighting its growing importance in the advertising landscape.
Benefits of Retail Media Networks
Increased Ad Relevancy
Retail media networks use the retailer’s first-party data to ensure ads are relevant to consumers’ interests and behaviors. This increases the chances of engagement and conversion.
By working with retail media, advertisers can access highly targeted advertising space and ad placements that resonate with their audience. This helps maximize the impact of their retail media ad spend.
Better Consumer Insights
Advertisers gain valuable insights into consumer behavior through connected retail media platforms. These insights help refine marketing strategies and improve campaign performance. Retail media networks to making waves in the industry by offering detailed analytics and reporting tools.
These tools centralize marketing data, providing a clear view of consumer preferences and trends. Such data is crucial for making informed decisions and optimizing advertising revenue.
Additionally, 85% of brands and agencies worldwide agree that retail media’s ability to drive upper-funnel brand awareness is increasing, further underscoring its importance.
Enhanced Shopping Experience
By delivering personalized ads, retail media networks enhance the overall shopping experience. This makes it easier for consumers to discover products they need and want.
Onsite advertising allows advertisers to reach consumers at key moments in their shopping journey, while offsite advertising extends the reach to other platforms. This approach ensures that ads are seen by the right people, enhancing the consumer experience and driving ad revenue.
Higher ROI
Retail media advertising typically results in a higher return on investment (ROI) due to its targeted nature. By using first-party data, advertisers ensure that their ad spend is used effectively, reaching relevant audiences and driving sales.
Things to Consider Before Choosing a Retail Media Network
Data Integration
Data integration is critical for maximizing the effectiveness of your retail media advertising efforts. Ensure the retail media network can seamlessly integrate with your existing marketing data platforms.
This integration should allow for the smooth flow of data between systems, enabling a centralized view of your marketing performance. A fix to siloed data is essential to prevent data fragmentation, which can lead to inefficiencies and inaccurate targeting.
Look for networks that offer strong marketing ETL, the ultimate fix to siloed data issues. This ensures that all your marketing data is harmonized and easily accessible.
Ad Placement Options
Ad placement options significantly impact your ability to reach your desired audience. Evaluate the variety of ad placements offered by the retail media network.
Onsite advertising, which includes ads on the retailer’s website and app, can help you engage consumers at critical moments in their shopping journey.
Offsite advertising extends your reach to third-party platforms, increasing the visibility of your ads beyond the retailer’s owned channels.
In 2024, offsite retail media is projected to account for 18.5% of US retail media ad spend, highlighting the importance of utilizing both onsite and offsite placements to maximize your advertising impact.
Consider networks that offer a diverse range of ad placements, such as display ads, video ads, and sponsored product listings, to maximize your reach and effectiveness.
Audience Targeting Capabilities
Effective audience targeting is essential for the success of your advertising campaigns. Assess the retail media network’s ability to target relevant audiences using first-party customer data. The more precise the targeting, the more likely your ads will resonate with consumers and drive conversions.
Look for networks that provide detailed segmentation options, allowing you to tailor your ads based on demographics, purchase behavior, and other key factors.
Additionally, ensure the network can leverage connected retail media platforms to enhance targeting accuracy and reach.
Reporting and Analytics
Strong reporting and analytics tools are essential for measuring the success of your campaigns and making data-driven decisions.
Choose a retail media network that offers comprehensive analytics capabilities, including real-time reporting, detailed performance metrics, and insights into consumer behavior. These tools should help you track key performance indicators (KPIs), such as click-through rates, conversion rates, and return on ad spend (ROAS).
Access to in-depth analytics allows you to refine your strategies, optimize your ad spend, and improve overall campaign performance. Additionally, the ability to centralize marketing data within the network’s platform can provide a more cohesive view of your advertising efforts.
The Best Retail Media Networks
Retail media networks are transforming the advertising landscape by leveraging first-party data and advanced targeting capabilities. Here are the top 7 retail media networks you should know about:
1. Roundel (Target)
Roundel, Target’s retail media network, stands out by using Target’s extensive first-party data to deliver personalized ads across multiple digital channels.
This network enables advertisers to reach Target’s diverse customer base through a variety of ad placements, including sponsored products, display ads, and video ads on Target’s website and app.
Roundel also offers offsite advertising options, allowing brands to extend their reach beyond Target’s owned properties. The ability to leverage Target’s first-party data ensures high relevancy and engagement, making Roundel a top choice for advertisers.
2. Amazon Advertising
Amazon Advertising provides access to one of the largest and most engaged online shopping audiences. This retail media network offers a wide range of ad formats, including sponsored products, display ads, and video ads.
Amazon’s powerful targeting capabilities allow advertisers to reach millions of shoppers based on their purchase history, browsing behavior, and demographic information.
Additionally, Amazon Advertising offers powerful analytics tools that provide insights into campaign performance and consumer behavior, helping advertisers optimize their strategies and maximize ROI.
3. Walmart Connect
Walmart Connect leverages Walmart’s extensive customer data to offer a variety of ad placement options, both onsite and offsite.
Advertisers can reach Walmart’s large and diverse customer base through display ads, sponsored products, and video ads on Walmart’s website, app, and in-store digital screens. Offsite advertising extends the reach to third-party platforms, ensuring broader visibility.
Walmart Connect’s targeting capabilities are powered by detailed shopper data, allowing for highly personalized and effective advertising campaigns. The network’s comprehensive reporting tools provide valuable insights into campaign performance and customer engagement.
4. Kroger Precision Marketing
Kroger Precision Marketing (KPM) is a leading retail media network that uses Kroger’s extensive shopper data to create targeted advertising campaigns.
KPM offers various ad formats, including display ads, sponsored products, and video ads on Kroger’s digital properties and partner sites. The network’s precise targeting capabilities are based on detailed purchase data, enabling advertisers to reach consumers with highly relevant ads.
KPM also provides strong analytics and reporting tools, allowing advertisers to track campaign performance, understand consumer behavior, and optimize their strategies to drive sales and enhance the shopping experience.
5. CVS Media Exchange
CVS Media Exchange (CMX) gives advertisers access to CVS’s first-party customer data, enabling highly targeted and effective advertising campaigns.
CMX offers a range of ad formats, including display ads, video ads, and sponsored products on CVS’s digital properties and in-store digital screens. The network’s targeting capabilities leverage detailed consumer data, allowing advertisers to reach specific customer segments with personalized messages.
CMX’s analytics tools provide comprehensive insights into campaign performance, helping advertisers make data-driven decisions and maximize their advertising ROI.
6. Instacart Ads
Instacart Ads is a retail media platform that allows advertisers to reach consumers while they shop for groceries online.
Instacart offers various ad formats, including sponsored products, display ads, and shoppable video ads. The platform’s targeting capabilities are based on real-time shopping behavior and purchase history, ensuring high ad relevancy.
Instacart Ads provides detailed analytics and reporting tools, allowing advertisers to track campaign performance, understand consumer preferences, and optimize their advertising strategies. This network is particularly effective for brands looking to reach consumers at the point of purchase.
7. Walgreens Advertising Group
Walgreens Advertising Group (WAG) leverages Walgreens’ first-party data to deliver personalized ads across various digital channels. WAG offers a variety of ad formats, including display ads, video ads, and sponsored products on Walgreens’ website, app, and in-store digital screens.
The network’s advanced targeting capabilities use detailed consumer data to ensure high ad relevancy and engagement. WAG’s analytics tools provide valuable insights into campaign performance, helping advertisers optimize their strategies and achieve better results.
This makes Walgreens Advertising Group a powerful platform for reaching and engaging Walgreens’ customer base.
These top retail media networks offer diverse ad placement options, powerful targeting capabilities, and comprehensive analytics tools, making them valuable partners for advertisers looking to enhance their digital advertising efforts. By leveraging first-party data and advanced technology, these networks help brands connect with consumers more effectively and drive better advertising outcomes.
Niche Retail Media Platforms
While major retail media networks dominate the industry, niche retail media platforms are making waves by offering unique opportunities for advertisers to reach specific audiences.
These platforms cater to specialized markets, providing highly targeted advertising options.
Specialty Retailers
Specialty retailers, such as beauty or health-focused stores, often have their own media networks. These platforms allow advertisers to connect with a highly engaged audience interested in specific product categories.
For example, Sephora’s retail media network offers beauty brands a chance to reach makeup and skincare enthusiasts through targeted ads.
Local and Regional Retailers
Local and regional retailers are also launching their own media networks to compete with larger players. These networks enable advertisers to reach consumers in specific geographic areas, making them ideal for local businesses looking to increase their visibility and drive foot traffic.
E-commerce Marketplaces
Niche e-commerce marketplaces are another example of retail media networks. These platforms cater to particular product niches, such as handmade crafts or sustainable goods. Advertisers can use these networks to reach consumers who are passionate about specific types of products, enhancing the relevancy of their ads.
Grocery Chains
Grocery chains with a strong focus on specific dietary preferences or lifestyle choices also offer niche retail media platforms. For example, Whole Foods’ media network targets health-conscious shoppers, providing brands with the opportunity to advertise natural and organic products.
Home Improvement Stores
Home improvement stores like Home Depot and Lowe’s have developed their own media networks to help advertisers reach DIY enthusiasts and professional contractors. These platforms leverage first-party data from online and in-store purchases to deliver highly relevant ads.
Conclusion
Retail media networks are revolutionizing the advertising landscape by enabling brands to leverage first-party customer data for targeted and impactful campaigns.
Whether you have a retail media strategy in place or are considering implementing one, you need an efficient way of planning, tracking, and reporting on all of your channels in one easy and effective platform.
With Mediatool, you can streamline these processes, ensuring that you maximize your advertising investments and drive better results.
Don’t miss out on the opportunity to enhance your retail media strategy.
Book a demo of Mediatool today to get started and see how we can help you connect with your target audience more effectively!
