What is a Retail Media Network?
A retail media network is a proprietary advertising network created by a retailer across all of their digital sales channels. Retail media networks give second-and-third-party brands the ability to purchase ad inventory and market to customers across a retailer’s owned channels with an extremely targeted approach. It’s similar to in-store advertising, but done digitally.
Shoppers are often more receptive to advertisements when they are already on a retailer’s site. The proximity and relevancy of retail media networks provides a convenient way to target customers throughout their buying journey, and deliver the right offers, at the right time.
Benefits of Retail Media Networks for Retailers
For retailers, retail media networks do more than drive incremental sales; they also create a new, highly profitable revenue stream through data monetization of owned first-party data. With the right customer data and insights, retailers can offer targeted advertising that benefits both themselves and their customers, leading to increased customer loyalty and brand advocacy.
Many retail media networks allow retailers and their suppliers to share customer data in a privacy-focused way. As a result, retail media networks give retailers access to vast amounts of customer insights that help them better understand their customers.
Even stores that are traditionally brick and mortar have benefited by creating new and exciting touch points for customers who prefer to shop online. Brands can do this in a number of ways.
- Digital Shopping Experiences. Digital ad placements on owned web and mobile app properties open up new ways to personalize customer experiences with hyper-relevant content and product promotions.
- Brick-and-Mortar Experiences. Retail media networks extend beyond just digital channels, as digital media begins to proliferate in-store locations. With geolocation and transactional data, retailers and partner brands can optimize promotion based on shopping behavior and demand across specific regions, or store locations.
- Omnichannel Experiences. With connected customer data, retailers can orchestrate seamless customer journeys that tap into individual buying behaviors.
- Campaign Optimization. Brands are able to leverage inventory on retail media networks to test ads, see what works, and who it reaches. Once brands receive access to this data, they can scale successful creative campaigns, and gain valuable first-party data in the process.