Retail Media Networks Definition
In today’s era of omnichannel marketing and dominance of e-commerce, retail media networks (RMNs) are making an impact. These advertising platforms, also referred to as retail media platforms, are managed by retailers to enable brands to display targeted ads across the retailer’s digital channels. These channels may encompass the retailer’s website, mobile application, email lists and even digital screens in stores.
Essentially, RMNs serve as a marketplace where brands can purchase advertising space to connect with the retailers existing customer base. The standout feature of RMNs is their capability to engage with consumers who have an intent to make a purchase. Picture being able to reach customers browsing for running shoes on a sports retailer’s website or introducing your latest line of beauty products to individuals actively researching makeup on a drugstore application. This focused approach on audiences to buy makes RMNs an effective tool for brands seeking returns on their advertising investments.
How Retail Media Empowers All Parties in the Shopping Journey
Retail media networks (RMNs) are transforming how brands engage with consumers and how retailers utilize their platforms. This isn’t a passing trend; it’s a beneficial scenario, for all parties involved.
Let’s break down the advantages that contribute to RMNs impact, in the world of online shopping.
For Retailers
For retailers, retail media networks (RMNs) represent a treasure trove of opportunities. They offer the opportunity to leverage their existing digital assets and unlock significant new revenue. Imagine turning your website, app, email list, and even in-store display into valuable advertising spaces. RMN allows retailers to do just that, enabling brands to reach the retailer’s most engaged customers. This means economies of scale, allowing retailers to diversify their revenues and prevent rising customer acquisition costs, but the benefits go beyond just dollars and cents. RMNs also provide retailers are enabled to deliver valuable data insights into consumer behavior within their ecosystem. This data can be used to optimize product offerings, create relevant marketing campaigns, and ultimately strengthen customer relationships.
For Brands
From a standpoint, retail media networks (RMNs) are a game changer when it comes to reaching consumers who’re highly interested. Unlike advertising methods, RMNs enable brands to specifically target their advertisements within a trusted environment of a retailer, placing them directly in front of shoppers actively exploring and contemplating purchases. This sharp focus on audiences in the market results in an increase in the effectiveness of campaigns. Brands can anticipate CTR’s (Click-Through Rates), greater brand recognition in contexts and ultimately, potentially substantial improvements in return on ad spend (ROAS). Additionally, RMNs provide data and insights into consumer behaviour on the retailer’s platform. This information can be used to tune targeting strategies to enhance ad designs and gain insights into customer preferences within that particular retail setting.
For Consumers
Customers also benefit from the emergence of media networks (RMNs). Imagine visiting your store and coming across advertisements, for products that perfectly match what you’re looking for. RMNs aim to enhance the shopping experience by allowing brands to display tailored ads based on your browsing history and previous purchases within the store’s platform. This means less time sifting through ads and time exploring products that meet your preferences. Ultimately, RMNs can result in a more enjoyable shopping experience for customers, potentially boosting satisfaction and loyalty, towards the retailer.
The Top Retail Media Networks
Now that we are familiarized with the concept of retail media networks and their advantages for all the players involved, we need to find out which are the main RMNs on the market.
Among the hundreds of examples that exist, we’re going to highlight those that we believe have the best platforms for all parties.
Amazon
As the undisputed king of e-commerce, Amazon Ads boasts a massive and highly engaged audience. Their RMN offers unparalleled access to shoppers across the entire purchase funnel, from product discovery to final checkout. Brands can leverage sponsored products, display ads, and streaming TV placements to reach highly targeted audiences based on browsing behaviour and purchase history.
Walmart
Don’t underestimate the power of Walmart’s RMN, Walmart Connect. With a strong focus on value-conscious consumers, this platform allows brands to target a loyal customer base known for its budget-friendly mindset. Walmart Connect offers display advertising, sponsored product placements, and even in-store pickup options to seamlessly integrate online and offline shopping experiences.
Target
Known for its trend-setting approach, Roundel allows brands to tap into a loyal customer base with a penchant for style and discovery. Roundel offers a variety of advertising solutions, including display ads, sponsored product placements, and even create marketing opportunities. This RMN is ideal for brands looking to reach fashion-forward consumers within a visually appealing and engaging platform.
CVS
Stepping into the world of health and wellness, CVS Media Exchange offers a unique RMN opportunity. This platform allows brands to target consumers actively browsing the CVS website or app, potentially at a critical point of decision-making for health and beauty products. CVS Media Exchange offers display advertising and sponsored product placements, enabling brands to reach a health-conscious audience within a trusted environment.
Etsy
For brands in the handmade and vintage space, Etsy Ads provides a targeted advertising solution within a thriving marketplace. This RMN allows sellers to showcase their unique products directly to a community of enthusiastic crafters and vintage enthusiasts. Leveraging Etsy Ads’ keyword targeting and promoted listings can significantly increase product visibility within this passionate consumer group.
eBay
While often associated with auctions, eBay also offers a robust RMN solution. This platform caters to a wide range of sellers, from established brands to individual resellers. eBay’s retail media network allows for targeted advertising based on keywords, categories, and even competitor listings, making it a valuable tool for reaching relevant audiences within the diverse eBay ecosystem.
Retail Media Trends
The future of retail media networks (RMNs) is brimming with exciting possibilities.
AI-driven Personalization
Anticipate witnessing the use of artificial intelligence (AI) in retail media networks (RMNs). This advancement will empower targeted advertising campaigns by leveraging a comprehension of consumer behavior and preferences, resulting in a personalized shopping journey for customers.
Enhanced Measurement and Attribution Techniques
With an increasing emphasis on return on ad spend (ROAS) the evolution of measurement and attribution methods within RMNs will be pivotal. Brands will seek metrics to measure the efficacy of their marketing efforts and refine strategies for outcomes.
The Emergence of “Commerce Media”
The lines between advertising and e-commerce are becoming increasingly blurred. A new trend known as “commerce media” is, on the rise, where RMNs transcend advertising to facilitate seamless product exploration and purchasing experiences within the sphere.
Integration Between Online and Offline Retail Environments
Anticipate a fusion of online and offline retail encounters. RMNs are likely to contribute to driving foot traffic in stores through targeted promotions and personalized product suggestions.
The Future of Retail Media Networks is Bright
Retail media networks (RMNs) have emerged as a powerful force in the e-commerce landscape, offering a win-win-win scenario for retailers, brands, and consumers.
For brands looking to reach high-intent consumers in a trusted environment, RMNs offer a compelling solution. For retailers, RMNs unlock new revenue streams and valuable customer insights. And for consumers, RMNs promise a more relevant and enjoyable shopping experience. There are already some partners developing skills and preparing their teams in order to help brands reach customers to RMNs, but there’s still a long way to go.
The future of retail media networks is bright, and its impact on the e-commerce landscape is only just beginning, and we will be here to follow what’s next.
