As consumers continue to shift their buying habits towards online channels, retailers are looking for more efficient and effective ways to reach customers. Retail media networks provide a unique way to advertise to customers directly at the point of sale, and they are becoming increasingly popular amongst brands.
There are a few different options available to brands regarding retail marketing – one of the most popular choices being retail media networks. Retail media networks create a powerful channel to connect with customers. By placing ads on the ecommerce sites and mobile apps of retailers, for instance, brands can reach potential buyers who are already interested in products and are just a few clicks away from making a purchase.
Additionally, the fact that advertising and sales happen on the same platform allows retail media networks to collect valuable customer data that can be used to target different audience segments with highly personalized ad campaigns.
However, for all the benefits, there can also be some drawbacks to using retail media networks. Let’s take a closer look at both the pros and cons of this type of digital media strategy.
Retail Media Pros and Cons for Shopper Marketing
What is a Retail Media Network?
A retail media network is a digital platform that connects brands with retailers, allowing them to showcase their products and services to shoppers. Retail media networks provide brands with an efficient way to reach target audiences while simultaneously providing retailers with a new revenue stream.
Partnering with a retail media network made it easier for brands to create customized campaigns that reach shoppers across multiple touchpoints, including in-store, online and on mobile devices.
Cliffedge Marketing has found that retail media networks have quickly become a key component of success for many brand marketing strategies since they offer a unique way to reach shoppers with targeted messages and product offerings. As the popularity of retail media networks grows, so does the competition for ad space on these platforms.
Retail media networks typically operate on a cost-per-impression (CPM) basis, meaning that brands are charged based on the number of times shoppers see their ads.
It’s crucial for brands to carefully consider their target audiences and objectives when creating campaigns on retail media networks. By doing so, brands can ensure that their campaigns are compelling while also maximizing their return on investment.
The Pros of Retail Media Networks
Leverage Omnichannel Retail Strategy
The Omnichannel strategy is the big advantage that Retail Media has over other forms of digital media. Omnichannel means having a consistent experience across all channels, whether in-person or digital.
For example, let’s say you’re looking for a new pair of shoes. You might start your search on a retailer’s website, find a few pairs you like, then head to the store to try them on.
If the Omnichannel experience is done right, you should be able to find those same shoes in-store and have the same great experience you had online. You may find them in your size, and if they’re not in stock, the sales associate should be able to easily order them for you.
It’s how Omnichannel creates a seamless experience for shoppers and offers a big advantage for Retail Media. By leveraging an Omnichannel approach, retailers create a cohesive experience for shoppers who will keep returning, both online and in-store.
Reach Large Audience of Potential Shoppers
Retail media networks can do this by partnering with retailers who have a large customer base. This means that professionals using shopper marketing and retail marketing strategies can reach their target audience through various channels, including in-store displays, online ads, and email campaigns.
Target Specific Demographics
This is done by using data that retailers have collected about their customers. This data can target ads and promotions to specific groups of people, such as those who live in a particular area or shop at a certain type of store. This allows marketers to be more efficient with their marketing budget and reach their target audience more effectively.
The Cons of Retail Media Networks
As with most strategies, if you’re not careful and experienced in this field, you could end up spending more money than you make in sales. Additionally, retail media networks typically require a long-term commitment, so it’s important to be sure that you’re ready to make that kind of investment before signing any contracts.
You’ll need to keep track of your campaign’s performance and measure KPIs to ensure that you’re meeting your goals. Additionally, you’ll need to regularly update your content and offers to keep people interested. Without the right segmentation and marketing channels, this can fall on deaf ears and miss your targets altogether.
Reach your target market with retail media networks
Do you want to find your target market? Regardless of the disadvantages, retail media networks are a marketer’s wise investment. By providing access to a wealth of data and insights about consumers, these networks can help you hone in on your ideal customer. Plus, with the right targeting and messaging, you can reach these customers where they’re spending the majority of their time online.