Scaling 3 opportunities for retailers and brands for retail media success

Scaling 3 opportunities for retailers and brands for retail media success

The rise of retail media is increasing at a breakneck pace. Retail media, known as the third big wave of digital advertising (after search and social), is expected to capture 1 in 5 ad expenditures by 20241 and become a $100 billion sector by 2026.

The power of retail media has become undeniable, and the time has come to capitalize on the huge expansion that is on the horizon. We published the eBook, How to Scale for Retail Media Success, to help retailers and brands plan for the future and take their retail media strategy to the next level.

If you work in retail media, you’ll want to get your hands on this eBook, which is chock-full of crucial chances for brands and retailers to position themselves for retail media success. To begin, here are a few recommendations from the eBook.

1. Extend your investment strategy.

Brands:

Brands that spend more on retail media do better. Despite this, our data shows that businesses continue to underspend on retail media compared to the opportunity. Many brands find themselves over-indexed in walled gardens, where the return on ad expenditure is lowest due to high competition and costs.

Lean on strategic reallocation to scale your program: Shoppers typically visit 2-3 retail sites before making a purchase, so broaden your portfolio to reach your shoppers where they are.

Retailers:

Retailers do not have to rely solely on direct sales. Retailers should open up to as much demand as possible in order to increase ad income, tapping into both direct and indirect sales for the best mix of revenue and efficiency.

To accomplish this, retailers should seek out API partners and DSPs who can enable indirect sales that generate incremental revenue. Furthermore, retailers should not lose ad revenue dollars from agencies by closing down their network or merely delivering a managed service offering. Agencies and brands demand the convenience of buying retail media with a single login and self-service inventory access.

1. Tactics should be tested across the entire funnel.

Brands:

A smart expansion strategy that expands retail media advertising formats is essential for optimizing both branding and performance. Brands should target the entire customer journey, both onsite and on the open web, all year round, but especially during peak sales seasons.

To do so, businesses can use the open web or CTV advertisements to generate brand awareness and consideration, engage with in-market customers directly on a retailer’s site, and trigger conversion at the point of sale with methods like sponsored items. Brands may get creative with formats, including video, dynamic display, static display, and sponsored products, to strengthen their interactions with customers. Brands can also distribute placements across the open web and on the home page, category, search, product detail, and checkout pages of the retailer’s site and app.

Retailers:

While sponsored advertisements are at the heart of retail media, retailers should diversify their ad portfolios to assist brands in achieving upper- and mid-funnel goals while also providing new consumer experiences.

Retailers can test both onsite and offsite display ads for mid- to upper-funnel opportunities, which can be applied to any product regardless of their purchase cycle length. Retailers can use in-store ads and email to increase upper-funnel awareness and provide an omnichannel experience. To casual interest browsers, retailers might also experiment with rich formats such as video.

1. Accept smart collaborations.

Brands:

With too many platforms and network logins, brands’ resources are sometimes overburdened, and their budgets and comprehensive measurements are hampered.

Brands should collaborate with demand aggregators and API partners to decrease complications. This will assist in streamlining media, increase access to supplies, and remain agile and efficient. Working with third-party partners can also provide valuable market intelligence, such as how much and where your competitors are spending on retail media.

Retailers:

Retailers should fully utilize the experience and capabilities of third-party organizations and partners. These partners can assist you in scaling your program for success by providing significant market insights as well as the knowledge and learning acquired through working with various stores.

Seek advice from partners on how to construct programs, optimize strategic planning, and generate growth strategies. Partners can also use their own data, analytical capabilities, and reporting to assist retailers in making the business case for their retail media roadmap to decision makers.

Take full advantage of the surge in retail media.