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Brands and advertisers are paying more and more attention to a growing form of marketing. In the world of e-commerce, retailers are already a key player in the sales strategies of all types of brands and sectors. In this article we will talk about what eRetail media is and how to invest in it wisely.
What is eRetail media?
Retail media is made up of the ads and sponsored promos featured on a retailer's website, app or platform. So it is used by advertisers to promote their products directly within online stores, in the same retail environment where purchases take place, thus facilitating higher sales conversion rates for your products if we follow an adequate strategy.
Traditional ads can come in different forms: from a brand’s campaign in physical stores to an online promotion using social media and influencers. Banners, scheduled promotions, sponsored searches ... in eRetail media an ad format is also very variable. But a fundamental point is that brands can improve their visibility on the digital shelf and follow the shopper throughout their purchase journey. And in each of the sites that he will visit, be it the home page, the category page, the search page or the product page.
Why invest on eRetail media?
Investing properly in eRetail media can have a direct impact on brand sales and on the profitability of our marketing campaigns.
We have to bear in mind that displaying advertisements on the retailers' sites guarantees less friction in the purchase process. And therefore a greater capacity to improve our sales conversions. Another advantage has to do with micro-targeting the audiences we want to reach.
eRetailers have the technologies to collect and track a large amount of information associated with the user's shopping experience (including purchase abandonment rates, sale time, linked clicks, etc.) With this digital infrastructure, brands can target specific shoppers in an increasingly competitive environment.
Another argument for investing in eRetail media has to do with the most recent changes in shopper habits. The Covid-19 pandemic has shown how users are spending more and more time on e-commerce sites. For example, researching what is the best product for them to buy, be it in an online retailer or in a physical store.
At the end of the day, shoppers use the digital shelf to create an opinion about brands and their products. Something with a direct impact on the reputation of any kind of company.
Tips for investing on eRetail media
Choose the right eRetailer for our product and strategy. Not all brands need the same type of marketplace for their products and their ad campaigns. Amazon, Walmart or eBay are some of the most relevant retailers internationally. But if we want to focus on a specific geographic region or a niche sector, we would have to previously investigate which space is the best to meet our brand’s goals.
Monitor the right KPIs. The objectives of every ad campaign are very different. And therefore also the data to be monitored within our strategy. Some of the most useful indicators when investing on eRetail media are the share of ads, share of promos, share of search and share of shelf.
Create appealing promotions and creative banners. A good ad design makes a difference, especially in a highly competitive environment such as retailers sites. An example of this innovation are carousel ads, which show rotating images or videos, very useful for displaying several products at the same time.
Optimize content for the best product visibility. All the information related to our brand and our articles must be perfectly optimized so that a mistake does not ruin the investment. For example, if the availability of an advertised product is not well monitored - with the consequent risk of an out of stock - all our investment can go to waste.
What are the challenges of eRetail media?
Despite the benefits and opportunities that investing in eRetail media brings, there are still very significant challenges associated with it. One of them is the dependence on third parties when monitoring the data of our ads.
Depending on the retailer we work with, it can sometimes be difficult to measure the Return of Investment (ROI) of our promotions and campaigns. Some retailers still don't offer a full third-party ad monitoring and tracking service, which can become a problem for brand strategies.
We also have to be aware that we are still facing an immature media market, in an initial development phase. So there is little evidence and deep knowledge about which are the most effective strategies when investing in it. The indicators show, however, that in the coming years this market will continue its expansion, which will also also expand the evidence around it.
Opening a new digital Ad space
The possibility of investing in eRetail media opens a digital space that until recently was banned for brands. Consequently, advertisers can find great potential in retailers to boost their sales and the profitability of their ad campaigns.
To achieve this, good management of the digital shelf and a strategy according to our objectives is necessary. Book a Demo of our eRetail media tracker available in our eCometry dashboard.
