What is RMN in retail? It primarily consists of retailer-owned promotion services with buyable ad space. It gives advertisers and brands access to digital assets and the retailer’s first-party data, allowing them to target and connect with the retailer’s in-market customers.
The two most well-known retail media networks are Walmart and Amazon, and the bigger stores followed suit when they began to monetize their first-party data and saw an increase in ad revenue. In addition, they began to provide partner businesses with the option to use their first-party data to promote both on-site and off-the retailer’s digital domains once they realized their visitor volume’s importance. To fill in the gaps and further establish themselves as essential participants in digital advertising, major retailers are embracing their responsibilities as ad platforms, expanding their ad sales teams, and collaborating with DSPs.
Three essential elements have accelerated the widespread adoption of media networks:
Increasing Online Engagement
Although eCommerce has shown good growth year over year, the pandemic considerably accelerated that expansion and the adoption of online activities, which led to a rise in the use of digital advertisements on websites devoted to the retail industry.
Lowering the Use of Third-Party Identifiers
Google has announced plans to discontinue third-party cookies sometime in 2023. Third-party identifiers, essential elements of ad-targeting advertising technologies like audience retargeting, extensions, and frequency capping, have been put in grave danger by the scheduled deactivation.
Automated Advertising Fraud
Programmatic marketing campaigns using a generic ad exchange could experience fraudulent ad impressions and clicks and failed deliveries to intended audiences. Because of these dangers, brand advertisers may concentrate on first-party data techniques, using merchandising media as the main distribution route.
Retail media networks’ assured ad placements eliminate the possibility of unsuccessful impression delivery. Additionally, their reliance on first-party data offers a future-proof system that won’t have problems with third-party cookie deactivation or customer privacy.