One of the most prominent trends today is retail media. For both brands and retailers, it offers huge potential. Discover how retail media operates and understand why retail media networks are one of the most important trends.
Advertising and retail are both continually adjusting to the digital era. The growth of retail media has replaced in-store signage with the utilization of advertising space on eCommerce websites and mobile applications. The fundamental interaction between brands and retailers that drives retail media still exists today. No matter where the place of sale is, retail media targets customers who are nearby with adverts.
Retail media generally refers to advertising that appears on a retailer’s platform. Utilizing the retailer’s own e-commerce website and app or a demand-side platform like Amazon DSP helps increase the audience for online marketing. Advertisements can also be found offline, such as on real billboards outside of physical stores.
According to AdAge, one of the current retail development trends with the highest potential is retail media networks. Several stores, such as Target, Nordstrom, and Best Buy, have already launched their own lucrative retail media advertising campaigns. Walmart generated $2.1 billion in revenue from its retail media network service in only one year.
As more retailers develop their own retail media programs, the landscape of retail media businesses will grow more competitive, making it more difficult for new entrants to obtain a portion of those marketing expenditures.
Retail marketing is a new tactic for advertising products for brands, and retail media fits into it. Retail media networks have recently been cited by Harvard Business Review as a brand-new way for marketers to use data and creativity to create value in 2022. Many businesses, including well-known ones like Anheuser Busch and Microsoft, currently use retail media advertising.