Retail media is red hot these days, enjoying 27% YoY growth. According to eMarketer, advertisers spent an eye-popping $23.92 billion in 2021 in the U.S. alone. This year, retail media advertising will go as high as $41.37 billion in 2022.
It’s no surprise that advertisers are investing more in retail media; it makes sense on a lot of levels. Let’s take a look.
First, what is retail media exactly? Web properties like Walmart.com, Target.com, Lowes.com and Amazon are more than mere ecommerce sites; they’re robust marketplaces that attract hundreds of millions of consumers each year.
Consumers visit these sites when they want to:
- Research products
- Make an actual purchase
For brands, retail media presents ideal opportunities to introduce new prospects to their products, and to influence their buying decisions. In other words, retail media is terrific for both awareness and performance campaigns.
The impact of privacy regulations + browser restrictions
By now you’re probably tired of reading about privacy regulations and the death of the cookie, but the truth is, marketers will need a new way to reach and engage consumers. Retail media is a great alternative. Why?
Traditionally, consumer packaged goods (CPG) companies have relied on third-party retailers to sell their products directly to consumers. Retail partners were the ones to collect the consumer’s first-party data, not the product manufacturer itself. As third-party cookie tracking goes away, brands without vast pools of first-party data are at a disadvantage.
Enter retail media. These big retailers know a great deal about their customers, and can help brands target shoppers who are likely to be interested in a specific brand or product. What’s more, they have developed sophisticated tools and audience segments to help brands home in on their ideal consumers.
All brands offer multiple ad options, including display ads and sponsored products.
What’s more, when brands advertise on a retail media site, they can use first-party data to measure the success of their campaigns. The retailer can provide reports that tell marketers the number of customers they’ve reached, and whether or not those customers went on to convert.
Retail media advertising platforms
Retailers offer more than inventory, however. Many now offer the technology brands need to reach target users. For instance, Target’s digital ad platform, Roundel, partnered with an ad exchange to offer programmatic advertising, and has rolled out an attribution tool that’s available to marketers who spend $75,000 over a six-week period.
Walmart Connect and Lowe’s One Roof Media Network offer similar functionality.
Don’t miss out
Many say that retail media will become the dominant advertising channel for advertisers, thanks to the abundant availability of first-party data for targeting purposes, along with the ability to reach consumers who are actively researching products and forming opinions about brands and measure campaign effectiveness.
Should your brand include retail media as part of your media budget? A large number of consumers rely on retail media to learn about products. If you’re not there, those consumers may never have a chance to learn about your brand. Get in touch – we’ll be happy to discuss with you further.