What the Future Holds for Retail Media And Marketplaces
Let’s begin with the burning questions - Why there is so much buzz about retail media now and why retail media is so important? The answer is not that complex. Simply put– the rapid growth in online shopping and the need of personalized customer experience has directed more focus on optimizing retail media.
More than 33.3% percent of the world’s close to 2.64 billion people shop online. This leads to more shopping and the need for more advertising. Retail media is the actual advertising placed on a retailer’s media network.
The impending demise of 3rd party cookies has drawn marketeers’ interest toward first-party data with the retailers to place targeted ads and boost customer engagement. This is fuelling the rise of Retail Media Networks (MNOs) and a treasure trove of first-party shopper data. Giants like Amazon have their marketing services.
But is this enough for brands?
Let’s dive deep to know why Platform Marketing Services and brands need optimization and what the future holds for retail media.
Grab the customer’s attention at the right moment with Retail media
In the new age of online retail media, when the average attention span of consumers is shrinking. Getting your product noticed among fierce competition becomes critical. Brands need to Strike the right moment and the right place to instantly grab customers' attention.
Retail media is a form of advertising that intend to capture consumers’ attention at the moment when they’re nearly ready to make a purchase or close to the point in the customer journey. The decision phase is where they pick the product among its competitors.
Online, retail media is far more sophisticated than what we see at the grocery store.
The insights on online retail media help brands understand consumer behavior, product segments, and trends in a better way. This will enable brands to deliver more impactful messages to the customers and optimize performance at multiple touchpoints across the customer journey.
Retail media can be used for a variety of purposes, which include
Product Promotion: Retail media allows brands to promote their products directly to customers while they are shopping online. This can include displaying product ads, providing product recommendations, and offering deals and discounts.
Awareness: Retail media can be used to increase brand awareness by displaying ads to a retailer's audience and customer base.
Customer Acquisition: Retail media can help brands acquire new customers by targeting their ads to specific audiences, such as those who have recently shown interest in similar products.
Customer Retargeting: Retail media can be used to retarget customers who have previously interacted with a brand's products or website, reminding them of products they have shown interest in and encouraging them to make a purchase.
Overall, the use of retail media can help brands increase sales, improve the customer experience, and gain valuable insights into their customers' behavior and preferences. Retailers offer digital ads on their eCommerce websites, apps, and on retailers’ sites to boost product visibility to the relevant audience.
Bain & co report estimates that the retail media market will grow by 25% per year to over $100 billion in the next five years and will account for over 25% of total digital media spending by 2026 which implies how massive the retail media could be in near future.
Perks of Retail Media
For growing brands, digital retail media offers several potential benefits. Through targeted placements, brands can leverage the existing online presence of larger retailers to gain new visibility and connect with highly relevant consumers who are actively looking for products to purchase.
There are several benefits of eCommerce retail media:
Additional Revenue: Retail media allows retailers to generate additional revenue by selling advertising space to brands.
Targeted Advertising: Retail media enables brands to reach highly targeted audiences, based on data such as browsing and purchase history.
Improved Customer Experience: Retail media can enhance the customer experience by presenting relevant and personalized ads to customers, leading to higher engagement and conversions.
Increased Brand Awareness: Retail media can help brands increase their visibility and reach new customers, as well as reinforce brand messaging to existing customers.
Better Data Insights: Retail media provides valuable data insights to both retailers and brands, enabling them to better understand their customers and optimize their marketing strategies.
But brands need more than that to edge ahead in the competitive digital commerce landscape. Plugging in digital commerce intelligence will provide deep insights into what your product needs to be more visible and what it needs to be more visible.
The Retail Media Trends Shaping Digital Commerce
First-Party Data is Gold In the Cookie less future, brands will reduce their reliance on third-party data. First-party data emerging as a vital tool for advertisers to provide personalized customer experiences. Retail media networks help brands access a huge volume of first-party data on customers’ search, browsing, and purchasing habits. But still, brands need a digital commerce intelligence solution to optimize the retail media based on valuable actionable insights.
Machine Learning Powers Retail Media Success Artificial intelligence and machine learning ameliorate brand performance and guide advertisers/brands to optimize their campaigns for specific metrics and enhance retail media. The targeted click-through rate (CTR) or return on investment (ROI), can be achieved with data-backed decision-making and effective retail media advertising campaigns. Comprehensive competitive analysis and machine-learning capabilities will play a wider role in the growth of retail media networks in 2023 and beyond.
Retail Media Strategies Will Focus on Diversification The diversification in retail media targets will help companies from being overly reliant on a single source to distribute their efforts across a variety of ad formats, audience segments, and target markets, depending on each provider’s specialty. Advertisers are expanding their retail media efforts into new technologies like connected TV (CTV).
Video Will Take Over Retail Media Ad Placements As more online retail marketplaces are developing their own retail media Network platforms, placements like sponsored products and sponsored searches have become the norm. To edge out the competition in the competitive digital commerce landscape advertisers need to turn to more engaging formats like rich media and video ads. The dynamic nature of video also enables advertisers to include various touch points across the funnel, maximizing the potential impact of a single ad unit. As, Video is incredibly effective, with an average click-through rate being 7.5 times higher than static placements or display ads. No matter which ad formats they employ, advertisers will still need to tie their retail media spending back to critical metrics like positive ROI.
The future of retail media in eCommerce is expected to continue to grow and become more important for retailers. Retail media allows retailers to monetize their website traffic by selling advertising space to brands, and it also provides brands with an opportunity to reach highly targeted audiences. As eCommerce continues to expand, retail media will likely become even more sophisticated and data-driven, with increased personalization and advanced targeting capabilities. Additionally, retailers are focused on their own media networks to compete with existing third-party platforms.
The scope of retail media is rapidly expanding as eCommerce continues to grow. Turn to mScanIt, digital commerce Intelligence to optimize the performance of retail media, enhance customer experience, and achieve a hefty return on investment (ROI). Retail media has become an important part of the digital advertising ecosystem, providing brands with an opportunity to reach highly targeted audiences.