What Is Retail Media?

Over the last year, we have seen a significant spike in shopping online, and this shift in consumer behavior is transforming the way brands advertise their products.  Digital Advertising will account for more than HALF of all global ad spend, so taking advantage of retail media and connecting is more important than ever.  Brands have become experts at creating and targeting audiences as they search social media or research products on google. 

What is Retail Media? 

Retail media are ads featured on retail websites, apps, or other online platforms.  Retail media makes it easier to convert sales because it allows brands to advertise their products near the point of purchase. 

When a consumer searches a keyword or a product category on Amazon, your ad could appear.   Retail media is eCommerce’s version of in-store advertising, which helps brands increase sales at the most significant point in the customer’s digital journey.  Digital spaces that had been restricting brands in the past are now open because of Retail Media.  Many online retailers have taken advantage of this opportunity, such as Amazon who introduced sponsored ads. 

The Advantages of Retail Media 

 Retail media is bringing incredible results to all eCommerce stakeholders.  With profit margins decreasing in consumer packaged goods, retail media is a new revenue source for online retailers.  Retail media networks prevent price hikes to consumers that impact traffic and ad revenue because it allows lower and consistent prices. With all the unique advantages Retail Media offers, brands are investing, and Retail Media is changing how shoppers and brands interact.  The advantages include:

In-Depth Data 

With Sales taking place on their platforms, each retail media network can collect first-party data on buyer behavior.  This data is more substantial than data from third-party cookies, which is even more critical because third-party dates will be phased out shortly.  It is essential to select a retail media with a loyalty program because it may have more detailed information about shoppers that will allow brands to target and customize their ads for the best results. 

Personalization

As stated, retail media allows you to customize your information to improve sales, increase ROI and give a seamless customer experience. With all the data from Retail Media Networks, brands can personalize offers to different audiences.  Loyalty cards are used with 87% of transactions at Dick’s Sporting Goods on its retailer media network; brands can target shoppers based on household size and personal preferences, like sports they play during each season.  This gives networks the ability to send customers coupons and email promotions, making it easier for brands to bring in new customers and show new products to current users. 

Perfectly Timed Ads

There is no better way to promote your brand than to get your message across to consumers in the buying mood by using Retail Media.   If someone is on your website researching a product, you can get your ad in front of them and convert them into a sale.   The ads using retail media are strategically placed to get more eyeballs on your products.  

Clear Conversion Tracking

Tracking the impact of your ads is accurately assessed because impressions and sales take place on the same platform.  This gives precise ROI insights and enables brands to invest in the strategies that boost their bottom line.

The Top Retail Networks Going Into 2022

Amazon

According to eMarketer, over 50% of people start their shopping on Amazon. Consumers can find almost anything they need on Amazon and promptly have it delivered right to their door. As a retail media network, brands across every niche and category can serve anyone’s personalized ads. 

To maximize sales and beat out your competitors, Amazon advertising is imperative to your success. Amazon uses a self-service platform that allows brands to bid on keywords and pay every time an ad is clicked.

Amazon offers three main ad types:

1. Sponsored Products are ads for individual product listings on Amazon. They appear within shopping results pages and on product detail pages.

2. Sponsored Brands showcase your brand and product portfolio. Featuring your brand logo, a custom headline, and a selection of your products, these ads appear in shopping results pages, helping drive sales and product visibility.

3. Sponsored Display is a new self-service advertising solution that helps advertisers reach relevant audiences across the shopper journey, with ad placements that appear on and off Amazon.

eBay 

Promoted listings are a type of eBay advertising that promotes your products to the top of eBay search results. Additionally, eBay offers display ads on its homepage and category pages.

Criteo

Criteo is an all-in-one platform that builds awareness and drives product sales on leading retailer websites for buying retail media at scale.  Brands can use Criteo to buy ads across Costco, Target, Best Buy, CVS, Walgreens, Staples, Walmart, Kohl’s, Meijer, and Macy’s.

Walmart

Brands can utilize sponsored product listings that will perform in search results or the Walmart Buy Box.  Walmart advertising can also run attention-grabbing display ads in high traffic areas across Walmart’s website and app. Expandable, rich media and in-banner video options are all available.

Wayfair

Brands that sell products through the Wayfair marketplace can create sponsored product listings, display ads, featured videos, native advertising placements or custom promotions.

Retail Media Network Options

Depending on your location and the kind of products you sell,  tons of other networks offer Retail Media Networks.  In the US, Home Depot, Kroger and Instacart also run their networks.

How Can aiCommerce Help with Retail Media? 

You have many options when it comes to selling your products online. Many brands and manufacturers use marketplaces such as Amazon, Walmart, Wayfair, and many others to sell their products because they know the consumer is already present.  The challenging part of selling on these marketplaces is managing the platform while following the rules and expectations set by the marketplace.