According to Statista, the global expenditure on digital retail media advertising reached $114.4 billion in 2022. Projections indicate this figure will surge to over $176 billion by 2028.
The realm of retail media is undergoing rapid expansion and reshaping how businesses interact with consumers. Unlike traditional advertising platforms, retail media empowers brands to directly engage with consumers already browsing or shopping on a retailer's website or app. Fueled by real-time shopping behavior data, this personalized advertising strategy enables brands to create hyper-targeted campaigns and significantly enhance conversion rates.
Retail media is one of the largest and fastest-growing ad markets in the US
The effectiveness of retail media can be attributed to the fact that shoppers are more receptive to ads while shopping, compared to when they are engaged in non-shopping activities. Retailers often seek increased investments in their in-house media channels from brands, using this strategy to secure better visibility and prime shelf placements within their stores. However, from the brand's perspective, these pay to play expectations can sometimes create a challenging negotiation dynamic.
How can retail media boost customer satisfaction, brand growth, and retailer profit?
Retail media enables brands to directly engage with consumers on a retailer's platform, offering highly targeted advertising and valuable insights. This relationship proves beneficial for all: shoppers receive tailored product recommendations and exclusive deals, brands gain access to a precisely targeted audience, and retailers generate additional revenue through advertising partnerships.
Rachel Tipograph, the Founder and CEO of MikMak and cohost of the BRAVE COMMERCE podcast, expressed in a conversation with AdExchanger, "Anyone in media needs to explore retail media due to its status as the fastest-growing segment of brand advertisers' investments." This sentiment captures the excitement surrounding retail media as both retailers and brands seek innovative strategies to connect with their desired audiences.
Focus on driving incrementally and maximizing audience penetration
Several guests on BRAVE COMMERCE - which is co-hosted by Profitero President Sarah Hofstetter - have discussed retail media during their appearances on the show offering both brand and retailer perspectives.
Austin Leonard, Head of Sales at Sam’s Club Member Access Platform (MAP), emphasized the importance of providing additional value to consumers in exchange for their engagement with a brand. Austin shared that by prioritizing value exchange, perfecting products, and placing consumers at the heart of their endeavors, brands can pave the way toward a future where retail media not only thrives but also enriches the lives of consumers and strengthens brand-consumer relationships.
Michal Geller, President of eCommerce and Digital at Newell Brands, provides a brand’s perspective on the power of data in retail media. He says, “We are shifting to a world where there is more of a partnership between retailers and brands than ever before.” He also explains that understanding consumer data allows brands to develop products that align with consumer needs and preferences. This data-driven approach not only increases the likelihood of a purchase but also fosters consumer loyalty and obsession. With the right data, brands can craft offers that resonate with their audience and drive profitable growth.
How retail media networks can be a game-changer for your brand
According to McKinsey & Company, in 2022, nearly 70 percent of advertisers saw better results with Retail Media Networks than with other channels. As retailers and brands recognize the power of data-driven engagement, we can expect continued innovation and refinement of retail media strategies. Personalization, relevance, and effectiveness will remain at the core of this evolution, reshaping the way consumers interact with brands and retailers alike.
MikMak is optimized for retail media
In today's competitive retail landscape, it's crucial for brands to utilize data effectively when dealing with retail media. This is where MikMak comes in. MikMak Commerce for retail media offers consistent and real-time reporting of retailer-specific performance data alongside national media investments, including paid search, influencer media, display, video, and more. This empowers brands with the information needed to effectively adjust and expand their retail media strategy.
You can gain more such insights from top industry leaders in one podcast, guiding your retail media journey
The BRAVE COMMERCE podcast offers listeners a front-row seat to conversations that shape the future of retail. By tuning in, you gain access to:
- Expert Insights: Learn from seasoned professionals who successfully harness the power of retail media to boost their brands and connect with their audiences
- Innovative Strategies: Stay up to date on the latest trends, strategies, and best practices in the world of eCommerce, helping you stay ahead in a competitive landscape
- Real-World Examples: Hear real case studies and success stories, demonstrating how brands and retailers overcome challenges and achieve remarkable results
- Networking Opportunities: Connect with like-minded individuals who share your passion for retail innovation, opening doors to collaborations and partnerships
- Actionable Takeaways: Each episode provides actionable insights that you can implement in your own business, making the podcast a valuable resource for retailers, marketers, and entrepreneurs alike
If you would like to tune into more episodes on this topic, we recommend listening to:
- Charlie Chappell of The Hershey Company on retail media, retailer communication, and using data to strategize
- Kate Crowley and Luke Sebire of LEGO on customer loyalty, media mix marketing, and upward funnel opportunities
- The J.M Smucker Company’s Charlene Zappa on integrating consumer behavior into every step of your brand’s strategy
Retail media is reshaping the retail landscape, offering brands and retailers innovative ways to connect with consumers. The insights shared in the BRAVE COMMERCE Podcast provide a comprehensive understanding of this evolving landscape, equipping businesses with the knowledge to navigate the challenges and opportunities of retail media successfully. Tune into BRAVE COMMERCE on Adweek Podcasts, Apple Podcasts, or Spotify, and learn how to stand out in the new age of consumer engagement.
