The Strategy Behind Retail Media
Retail Media
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6 min read
It’s about keeping a smart and strategic progression plan in terms of brand awareness, customer reach and overall growing profit.
With the arrival of Cyber Monday after Black Friday and then Christmas, the holiday season continues unabated, and we’ve noticed that this period actually creates a kind of pressure on many brands. In these period full of traffic and in which competition in the market reaches its peak, sellers & brands feel the urgent need to follow smart marketing and advertising strategy.
In this season when it’s certain that sales and customer engagement will increase, they should be able to advertise their products in a controlled plan, choose appropriate ads for different product categories, and make accurate targeting, both in terms of keywords, channels to be published on, and audience selection. Because, as mentioned in our previous articles, it is inevitable to have a comprehensive advertising platform, where they can manage the smartest ways of conducting and applying their ad plans or strategies as much as possible, for every seller and brand that sells on online platforms and aims to promote their product inventories.
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“In addition to determining which platform to manage first and worrying about whether customers would interact with their advertisements, marketers also worry about whether people will enjoy their advertisement and product enough to buy it.”
A challenge for brands that want to spend their advertising budget in the right places and find the customer who will actually make the purchase is that the holiday season is like a storm. The current economic climate causes many customers to spend less and less and constrain their budgets. With inflation rising and uncertain economic conditions, consumers are surely planning to buy less.
That’s why many brands have an advertising platform that they need to use in order to capture the right customers and get efficiency from their campaigns, have different types of advertisements they will benefit from, features and services like different keyword selections, bidding options, AI-based suggestions and reporting to check performance metrics. These services are no longer a luxury but a necessity for brands to leverage their visibility, sales, customer engagement, and digital presence in the market.
Advertisers and brand strategists try to predict where online shoppers will make their purchases and meditate on how to immediately persuade them to buy certain products. This year more than ever, every dollar spent on consumer products and holiday gifts matters. Now, it’s more crucial to reach the right audience with a clear purchase intention than it is to merely get their attention.
Understanding the true value of Retail Media
Using Retail Media, advertisers can post targeted ads on retailer websites — and it’s the perfect solution for brands as consumers prefer mainly to shop on retail websites. The customer traffic volume of the most popular online retail sites is unbelievable. More than 70% of customers stated that they start their product hunting on Amazon and according to the Consumer Pulse Report published this year, 34% of online users picked Walmart as their preferred online retailer to shop from. Online retail sites provide sellers and brands with a fantastic potential to increase sales because many brands find it difficult to effectively display their goods or take advantage of attention-grabbing advertising opportunities to engage customers during their shopping process in digital environments.
Brands and advertisers can use a Retail Media plan to develop a remarkable brand experience for consumers. This entails developing targeted advertising campaigns that increase brand awareness and deepen user interaction. Important thing is, before the new year, most firms should have already incorporated Retail Media into their ad planning in order to have a strong tool for the rush times.
Add targeting to the list
Retail Media helps immensely to target the appropriate audiences. CPGs can drive high-intent consumers to the websites of their retailer partners as well as target relevant audiences from different channels. It allows customers to view advertisements for the specific product they’re looking for, you can think of it as opposed to watching adverts on TV or surfing magazines when a shopper isn’t interested at all. So, basically it creates a connection with customers at the point of sale.
According to McKinsey, nearly 70% of advertisers claim that Retail Media outperforms other marketing channels. In the end, because Retail Media is located at the buying stage of the marketing funnel, where customers are ready to buy, it produces a higher return on ad spend.
On the other hand, brands get access to retailer first-party data, as noted in our previous articles on privacy issues regarding digital advertising, it is a crucial factor to take into account while running personal ads. Retail Media offers transparency into marketing initiatives with retail partners, which is ideal for advertisers and brands waiting to acquire analytic clarity in their ad campaigns and performances. These Retail Media Platforms also provide brands with a real-time view of all the sales figures and metrics they need.
Beyond Promotions and Driving Attention
When shoppers are taking a long time to make decisions about what to buy, brands and sellers who adopt a solid Retail Media plan utilize Sponsored Ads to place their products at the outstanding places of the page, and the majority of the purchases go to them. Many well-known brands also benefit from effective product advertising campaigns by working in strategic cooperation with retailers who actually have Retail Media platforms. Using Amazon’s advertising platform, Alexandra Workwear increased its sales by 372% year over year and saw a 500% return on advertising investment (ROAS). Another example is Lenovo, and the company produced an effective 15-second video to advertise its Yoga laptop. The Brand Lift study found that this advertising campaign has increased company awareness by 19 points, perception of the brand as a premium brand by 5 points, and buying intention by 9 points.
Brands in cooperation with retailers owning a decent Retail Media ad platform will get the chance to be presented with different ad campaign types where they can feature their products at the top of search results, include their brand in shopping results, and display ads across different channels & networks. It’s about keeping a smart and strategic progression plan in terms of brand awareness, customer reach and overall growing profit. And especially these days, we strongly advise both brands & sellers to make retail media spending one of their top priorities when evaluating budget allocations during the holiday seasons.
References
Alexandra Workwear works with Shift to increase sales. (n.d.). Amazon Ads. Retrieved December 9, 2022, from https://advertising.amazon.com/en-gb/library/case-studies/alexandra-workwear-shift-marketplace/?ref_=a20m_us_libr
Byrne, S. (2022, October 19). Retail media networks: Top benefits and strategies. Bazaarvoice. https://www.bazaarvoice.com/blog/retail-media-networks/
Commerce media: The new force transforming advertising | McKinsey. (n.d.). Www.mckinsey.com. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/commerce-media-the-new-force-transforming-advertising
Consumers Start Their Product Hunting Here. (n.d.). Beam.city. Retrieved December 9, 2022, from https://beam.city/2022/02/74-of-u-s-consumers-start-their-product-hunting-on-here/
Patel, N. (2022, July 2). The Keys to Success With Amazon Advertising. Neil Patel. https://neilpatel.com/blog/success-with-amazon-advertising/
Six reasons to integrate Retail Media into your strategy. (n.d.). Microsoft Advertising. Retrieved December 9, 2022, from https://about.ads.microsoft.com/en-us/blog/post/november-2022/retail-media-holiday-solutions
Aysu Altuntaş
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