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Two challenges arise with eRetail Media: integrating with a new media network and ensuring the retailer's data is what you need. In order to solve the second one, you should ask yourself the following questions: Does it have the depth and granularity that will make it useful? And the most important: Do I have the full visibility of what is going on in the categories where I participate? Do I know what my competitors are doing?
The eRetail Media added values
There are several reasons why retail media networks are valuable:
In first place: audience reach. Retailers have large customer bases and foot traffic, which makes their media networks an attractive advertising platform. They access a wide range of potential customers, providing advertisers with extensive reach and exposure.
In the second place,advertisers can target their campaigns with precision with retail media networks. Advertisers can tailor their messages to specific demographics, interests, or purchase behaviors based on customer data and insights provided by retailers. It enhances the relevance and effectiveness of advertising campaigns, thereby increasing their value.
Moreover, in retail media networks, advertisements can be strategically placed in relevant contexts. Cosmetics brands, for example, can advertise their products in retailers' beauty sections or alongside related products. As a result of this contextual relevance, consumers who engage in relevant shopping experiences are more likely to pay attention.
Besides, retail media networks offer the advantage of reaching consumers who are already in a shopping mindset. People visiting retail websites or physical stores have a higher likelihood of making a purchase compared to general online browsing. Advertising within a retail media network taps into this existing purchase intent, making it more likely for ads to generate conversions and drive sales.
And the last and most important: First-Party Data. Retailers have access to valuable data about their customers' preferences, shopping habits, and purchase histories. Retail media networks can leverage this data to provide advertisers with valuable insights into campaign optimization, audience targeting, and advertising effectiveness. Advertising ecosystems benefit greatly from this data-driven approach.
Advertising optimization
Retail media data is a crucial asset to advertisers seeking to maximize the effectiveness of their campaigns. In retail media networks, performance tracking and analytics are readily available, enabling advertisers to access real-time insights into campaign performance and make data-driven adjustments accordingly. By leveraging these resources, advertisers can optimize their advertising strategies by refining targeting parameters, adjusting ad creatives or placements, and identifying new opportunities for growth. Retail media networks derive significant value from this ability to track and refine campaign performance; it helps them better understand customer behavior patterns, identify areas of improvement within their network infrastructure or product offerings while keeping pace with evolving industry trends. Ultimately, retailers that prioritize the collection and analysis of retail media data stand to gain a competitive advantage in the marketplace by driving revenue growth through more effective advertising tactics.
Higher chance of converting: let’s see some evidence
While it is challenging to provide an exact conversion rate for advertising on retail media networks compared to other forms of digital advertising, there is evidence to suggest that it can be highly effective in driving conversions.
Here we share 3 different studies where were found some interesting insights:
· According to a study conducted by Kantar, advertising on retail media networks can result in up to 7x higher conversion rates compared to traditional display advertising. This suggests that these platforms have a greater likelihood of turning ad views into actual purchases.
· A survey by IAB (Interactive Advertising Bureau) found that 72% of consumers agreed that seeing an ad on a retail website made them more likely to make a purchase. The presence of ads in a retail environment can stimulate purchase intent and influence consumer behavior positively.
· According to a study by Magnetic and Retail TouchPoints, personalized ads based on first-party data can result in a 50% higher conversion rate compared to non-personalized ads.
eRetail Media: success not guaranteed
When it comes to eRetail Media, success is not guaranteed for every brand. It requires a thorough understanding of various ecommerce metrics and the ability to leverage them effectively in order to achieve optimal results. This is where Shalion can offer valuable support and guidance for your brand. Our team specializes in analyzing ecommerce metrics and deriving powerful insights from the data we collect. By working together with our clients, we are able to develop customized strategies that are tailored towards achieving their specific goals and objectives. With our expertise in eRetail Media, brands can rest assured that they have a partner who understands exactly how to navigate the complex world of online retailing and maximize their potential for success.
