In the world of digital marketing, brands are constantly looking for effective ways to reach and engage their target audience. One of the emerging advertising opportunities looming in this regard is Retail Media - a form of marketing that offers the potential to bring brands closer to consumers at the point of purchase.
What is Retail Media?
Retail Media is, at its core, advertising that takes place on digital platforms owned or operated by retailers, such as e-commerce websites, mobile apps and physical stores. It includes a wide range of ad formats, including display ads, search ads, sponsored product listings, various forms of in-store advertising opportunities, targeting consumers who are active during their shopping experience. See shown below how retail media works.
The power of retail media
One of the benefits of Retail Media is the ability to position brands at a crucial time in the consumer's buying journey, when they are already engaged in searching for products or services and ready to make a purchase decision. By being present on these platforms, brands can increase their visibility, strengthen brand recognition and connect directly with potential customers at the moment of decision-making. In this case, retail media brings added value: through high relevance, measurement capabilities, specific targeting options and accurate customer segmentation. This allows ads to be effectively targeted to relevant audiences with which the impact of the message can be increased.
In addition to endemic advertisers (As an endemic advertiser, the product is sold on the platform or in the store where you want to advertise), more and more non-endemic advertisers (Advertisers without a direct supplier relationship with the retailer) are expected to take advantage of retail media because of the opportunities it offers.
The role of media agency STROOM
At media agency STROOM , we understand the value of Retail Media as a part of the modern marketing mix. Our team of experts helps brands navigate the complex landscape of media, developing strategies tailored to our clients' unique needs and goals. From identifying the right platforms and ad formats to optimizing campaigns based on real-time data analysis, we strive to help brands strengthen their presence, and reach their audience through retail media when it fits within the strategy.
So says Marieke van der Hoek, Communications Director and MT member at STROOM , the following about The use of retail media for our client Napoleon and Anta:
"For both Anta and Napoleon, we deploy digital screens in supermarkets several times during the year as a form of retail media. This has several advantages: we advertise close to point of sale, making us very relevant. People are already in a buying mode and through visibility at the right time we can stimulate impulse purchases. This is a cost-effective deployment because we really reach the messenger, unlike mass media where we also realize a lot of "waste.
"Another big advantage is that the screens can be purchased flexibly, so we can respond to times when the product is most relevant. For example, we see that people buy more sweets in the afternoon and on weekends. It is interesting to be visible precisely at these times, rather than, for example 8 a.m. Monday morning. "
"The disadvantage of this deployment is that you are in the loop between mostly food parties. We are not the only ones who want to be visible at this relevant time. Then the consumer in the supermarket is also flooded with advertising in the form of shelf banners, floor stickers, screens and wobblers, among other things, in addition to all the products that are already on display there. In short, the question remains to what extent you stand out and stick with consumers in an environment full of products. You can imagine that a candy brand will stand out more in an environment where there are no other food products on display than in a place where people are inundated with food products. A bit like Times Square; when everyone is shouting at the same time, no one stands out " - Marieke van der Hoek
Colleague Patrick Bot, Communications Consultant at STROOM, says the following about his experience with retail media:
"Retail media is growing fast. Spending is rising, new parties are entering the market and established parties are offering an increasingly integrated media mix. With this, retail media is creating a lot of interest and attention among advertisers. However, it is important to take a step back. Retail media is mainly effective in combination with a promo or when a mix of advertising models is taken. Such as a broader media deployment with, for example, TV, radio, online video and social media. The danger is that advertisers focus too much on the conversion layer and more and more budget shifts to retail media to run an "effective" campaign (lock-in effect). Ultimately, brand building must remain the focus where retail media can become part of an overall media mix, but cannot completely replace it." - Patrick Bot
Conclusion
Retail Media represents a factor in the modern marketing mix in the buying process for brand promotion, with multiple opportunities to reach and engage consumers at the time that matters. At Media Agency STROOM , we are dedicated to helping brands leverage the full potential of Retail Media in the mix if, it can add value to the advertiser, and be added as a component throughout the media funnel.
Author: Noa Dax de Bruijn - Marketing Trainee