20 Jun Retail media as a trend and new marketing future.
Retail media consists of brands that directly sell products to retailers by advertising on their websites and apps. The purpose is to increase their visibility by displaying ads. In order to reach targetted customers, advertisements can be displayed on the home page, category page, search page, or product detail page.
To make it more clear, here is an example of what retail media is;
The three biggest websites for online advertising currently are Amazon, Facebook, and Google. Amazon’s online advertising revenue in particular is expanding quickly. Therefore, Amazon advertising is a good example of a new kind of advertising, which is retail media.
Retail media as a trend and new marketing future.
In 2023, retail media will open up new opportunities for digital advertising. Advertisers and major retailers like Amazon and Walmart are considering utilizing retail media networks to increase sales, reach new audiences, and diversify revenue streams. Retail media can also provide information about the effectiveness of physical stores (in-store visits and impressions) and their potential moving forward.
Besides, traditional search engines like Google no longer contribute to more than half of online product searches. Instead, they search for things directly on marketplaces and online retailers like Shopee and others. Moving the advertising spend to the areas where people are looking for products is therefore obvious. The fact that you may buy things right away with just one click is a huge benefit.
In addition, it is anticipated that $60 billion would be spent on retail media by 2024. In Asia specifically, the report revealed that retail media websites in Asia, like Carousell, Alibaba, JD.com, Grab, Foodpanda, and Shopee, are emerging as the primary entry points for digital advertising. Thus, after search engines and social media, retail media advertising is currently being signaled as the third major digital advertising wave.
The benefits of retail media for retailers
Digital retail media has a variety of potential advantages for developing brands. Brands can use major retailers’ online presence to acquire fresh visibility and establish connections with highly relevant customers who are actively looking to buy things through targeted placements. It specifically enables brands to:
1. Quick gains
Retail media gives an opportunity for businesses that sell in physical stores but are still fairly new to the web to make quick gains. Retail media can be helpful in raising brand awareness in emerging global markets when businesses haven’t yet introduced strong localized digital services.
2. Ready to buy
Shoppers are actively looking to purchase when they browse retailer websites and applications. Brands have the power to influence consumer choices through retail media when they are actively researching products and reviewing their options.
Utilizing retail media successfully
Online shopping is more popular than ever, and this shift in consumer behavior is transforming how brands advertise their goods. For the first time ever, more than half of all global ad expenditures were made on digital advertising in 2021. The moment has come for businesses to use retail media networks to connect with customers as they shop, even though they are used to targeting audiences as they browse social media or conduct product research on Google. Thus, this is why you should utilize retail media and this is how.
1. Invest more in digital retail media
Manual spreadsheet updates are insufficient for managing retail media campaigns. In order to target and optimize expenditure across retail media networks, monitoring, and bidding engines can help discover high-intent audiences. Real-time reporting systems can track campaign results and send out warnings when changes need to be made. While major businesses might try to develop these capabilities internally, other brands would need more complex ad agency solutions.
2. Create customer relationships based on data
Brands can improve their current customer records by using tools for acquiring first-party data such as email subscription offers, interactive profile builders that gather information on preferred styles or solutions, loyalty programs, feedback surveys, and customer support encounters.
3. Do research on the retail media networks
Understanding the target market for companies is essential to choose the best retail media mix. If category-specific retail media networks can offer more accurate targeting and ad relevance, they may be a better option than Amazon, the main retail media network, for sheer reach. Thus, do your research before deciding the right retail platform to promote your business.
So readers, what’s your opinion on retail media? Is this type of ads more effective? As a retailer, would you like to spend on retail media to boost your business? Share your thoughts in the comment below.