The last few years have witnessed a boom in e-commerce, and from the looks of it, it will be a continuing current for the years to come. There’s no denying that retail media platforms have also altered the digital advertising landscape, providing brands with new and efficient ways to reach their target audience. In today’s article, we’ll discuss how retail media platforms are transforming digital advertising and how you can use it to your advantage.
How did retail media come to be?
As mentioned above, the continuous rise of e-commerce contributed to the expansion of the online marketplace, which led to the astronomic rise of retail media platforms. However, it’s important to know that many retailers and brands realized the budding potential of digital advertising through sponsored content, banner ads, and the likes through websites. From there, it continued to evolve, adapting based on human behavior and trends before we reached the retail media platforms of today.
The pandemic also played a crucial role in their boom, given how many of us were stuck inside and had far too much time online, browsing the web, where their target audience grew.
What are the advantages of retail media?
Every brand and entrepreneur wants to spread the word about their business, which is why they utilize advanced retail media platforms. Here are a few of its unique advantages:
It precisely targets your audience. Retail media networks (RMNs) are untouchable when it comes to consumer behavior; they have experts who dedicate time and effort to learning about a consumer’s browsing behavior, purchase history, and to which demographic population they belong. With these factors in mind, they can formulate and deliver specific ads to the most receptive audience. As a result, brands and companies maximize their campaign ROI without wasting ad costs.
They boost a brand’s visibility. In a world chock-full of products and services, yours can easily be drowned out and put on the back burner. But with the help of RMNs, they will work on the brand’s ecosystem, boosting visibility along with other retailers’ products and services. This co-branding effect yields increased brand awareness and credibility, giving them more exposure and broadening their target audience.
Their results are performance-driven. Owning a business means you must have the right capital for your products and services, along with marketing expenses to help reel in potential customers that will hopefully turn into conversions. Being wary and mindful of your finances is a good practice among entrepreneurs, which is why RMNs offer performance-based pricing models like cost-per-click (CPC) or cost-per-sale (CPS). In doing so, they’re incentivizing campaigns that drive substantial business results.
They provide direct-to-consumer reach. RMNs also give access to a retailer’s customer base, allowing brands to connect directly with consumers who are already tied up with the retailer. This is crucial, especially since there has been a rapid decline in third-party cookies leading to many challenges, so bypassing the complexities of third-party data is already a feat in itself.
There’s no doubt that retail media platforms are changing digital advertising, and they will continue to do so based on the ever-changing consumer behavior. It’s crucial to understand their benefits so you can also employ these to help you achieve a successful digital marketing campaign.