Retail media networks (RMNs) are a powerful new way for brands to monetize their content. They give retailers access to their shopper data and offer closed-loop measurement, which is critical for Consumer Goods companies looking to maximize return on ad spend.
By leveraging this first-party data, marketers can streamline targeting to warm audiences. Here’s how it works:
While some brands have long embraced retail media networks, more niche companies are now looking to partner with these networks too. Retail media network solutions allow brands to target ad campaigns more precisely and scale up creative that resonates with audiences.
Unlike third-party ad platforms, RMNs collect first-party data on buyer behavior. This is a great way to counter the limitations of relying solely on retailers’ visitation data, which fails to capture all offline visits that don’t lead to purchases.
As a result, RMNs can offer a much more robust suite of analytics tools, including sales lift measurement. This is essential because it enables brands to measure ROI more confidently. In addition to proving incremental return on advertising spend (ROAS) and measuring performance by category, brands must also be able to compare results by new vs. returning customers to get a clear picture of actual impact.
Brands should look for an RMN offering comprehensive, end-to-end service and a transparent platform that can integrate with their existing DSP. For example, a full range of ad technology makes it a good option for marketers.
Additionally, its ability to synchronize with supply and inventory data enhances optimization. For example, if an ad campaign for a specific product is ineffective in a given store location because the shelf space is filled, it can be paused until the problem is resolved.
Retail media networks allow brands to reach shoppers at a point in their purchase journey when they’re most likely to convert. It’s not just for online retailers; traditional stores with large customer bases also benefit from this approach. For example, some of its retail media networks leverage first-party loyalty card data to offer targeted advertising on its website and across third-party platforms.
Consumers use a multitude of devices throughout the day. They check social media on their smartphone while on the go, surf the internet on their work laptop during lunch, and watch TV before they head to bed. This fragmented attention makes it challenging for brands to reach their audiences in the right place at the right time.
But with cross-device and device ID targeting, it’s possible to deliver personalized content to users no matter which devices they use. These tools can help marketers improve frequency capping focused on the user and provide customized messages that adapt and evolve across channels.
When selecting a retail media network for your campaign, traffic scale and targeting capabilities should be top considerations. Look for networks that offer robust cross-device attribution reporting that can capture secured conversions across desktop and mobile. For precise targeting, look for networks that can build a detailed identity graph for every user.
Retail media networks are a powerful tool for retailers looking to monetize their digital inventory, enabling brands to target shoppers on both onsite and offsite channels. RMNs use first-party data to deliver ads resonating with consumers and drive higher ROI than third-party cookie solutions. As the cookie less world becomes more of a reality, a shift of digital media dollars to first-party audience solutions will occur.
Unlike traditional display advertising, a retargeting strategy for a retail media network is designed to reach people in the market for a specific product or service at precisely the right time. With a retargeting solution for an RMN, advertisers can deliver personalized messages that help elevate the buyer experience and drive more conversions.
RMNs often offer closed-loop reporting to show the incremental sales that have resulted from an ad campaign, which is an attractive proposition for brands under pressure to prove their return on investment. Additionally, RMNs can provide access to in-depth shopper data that is more reliable than third-party data.
In addition to providing a valuable new revenue stream for retailers, RMNs also allow marketers to be closer to the point of purchase than in the past. With the proliferation of e-commerce, it is more important than ever for marketers to have a presence on retail home pages and other relevant pages, including product detail pages, search results, and category pages.
Retail media networks are surging in popularity. Some said they would drive an additional billion in spending this year, bringing the total to over a hundred billion. With this heightened investment comes the expectation that marketers can demonstrate real business impact. The best way to do this is with closed-loop measurement, which ties a media campaign back to actual sales.
Closed-loop reporting helps paid marketers create reports for senior-level marketing executives and C-suite leaders focusing on dollars in/out. It also provides the evidence needed to ask for budget increases.
Unlike other metrics like impressions and clicks, accurate closed-loop measurement goes far beyond the typical digital analytics that is often ad-tech specific and does not account for all media channels and touchpoints. With a closed-loop solution, brands can track media performance across the entire purchase funnel and identify what is working and which tactics should be maximized.
To do this, a brand needs to look for an RMN that offers a single analytics platform that allows them to see the results of all their campaigns in one place. This includes the ability to analyze performance by new versus returning users and by product category, along with engagement metrics that allow them to understand what driving ad performance is.
This information is crucial for making informed optimization decisions based on what’s causing the most ROI. The granularity of this data can also help brands determine the incremental value of their ads by identifying how many sales could be attributed to an advertisement versus those that would have happened regardless of advertising.