Retail media only makes sense in light of the growing number of online shoppers. What is a retail media platform?
When merchants build up an advertising platform on their website, app, or other digital platforms inside their network, they are creating a retail media network. Customers can now see advertisements for the store and other brands on websites like retailmedialabs.com. It is a type of digital in-store advertising.
Retail media succeeds because consumers are more attentive to advertisements when they are shopping than when they are engaging in other non-shopping-related activities.
Retail media’s benefits
We’ll start by examining the benefits of retail media and categorizing them based on the participants.
For Store Owners
For retailers, the creation of a new revenue source is retail media’s most important benefit. A retail media network enables shops to participate in the $560 billion global advertising market.
Consumer packaged goods (CPG) profit margins have declined in recent years. For shops trying to increase their profitability, the cash from retail media has been a lifeline.
For clients
The primary advantage is that it gives clients better price control. Retailers won’t be as eager to boost prices because they are now making money from advertisements. A price rise might cause a decrease in traffic, which would lead to a decline in ad revenue.
Second, retail media helps customers by providing a superior shopping experience (CX). Ads may be bothersome, no doubt. However, if done correctly, they can aid consumers in making wiser purchase choices.
For marketers
Access to first-party data is one of the main benefits of retail media for advertising. First-party data, in this example the retailer, is information that has been gathered and is the property of the website’s owner. Compared to third-party data gathered by other means, such as cookies, it is cleaner and more trustworthy.