Retail Media has broken into the market as a great ally of brands, offering retailers the possibility of transform your e-commerce sites into advertising platforms dynamic and revenue-generating digital companies that can compete with companies like Amazon, Google and Facebook.
In simple words, we understand Retail Media as the strategy by which retailers, from their position advantaged in terms of obtaining consumer data and audience concentration center, are able to add value to these assets for manufacturers and/or sellers. It is also defined as the ‘TradeMarketing’ of the new digital era being a new form of collaboration between brands and retailers.
Although for years the food sector seemed to have been left out of the wave of electronic commerce, and most buyers preferred to make their purchases in physical stores, the pandemic was a trigger that led many consumers to sign up to “make the purchase on-line”. In fact, according to the just published, ‘VI Observatory of Electronic Commerce in Food’ of the employer’s association of supermarkets Asedas prepared by the Complutense University and the Autonomous University of Madrid with a interannual growth of 2.6% in Spain we are already at 57.25% of consumers who have ever made an online purchase.
Retailers cannot ignore this reality and for this reason they are increasingly embracing the opportunities that new technology puts at their fingertips.
For years vendors have been penalized by e-commerce search engines and relevancy algorithms, so they had little or no control over the positioning of their products online. Unlike the in-store format, where every inch of shelf space is highly negotiated by both parties, the online format It’s a landscape much more difficult for this negotiation.
Given this scenario, Retail Media streamlines the online monetization business of retailers, making it less manual, and brands (suppliers) no longer have to reserve and block advertising media on platforms weeks in advance. The self-service platform allows brands to increase sales at any time by launching Targeted and relevant advertising campaigns at the point of sale with banner advertising and sponsored product ads that allow brands to attract buyers with products that are relevant to them and personalized according to the buyer’s profile.
For retailers and suppliers, adopting electronic commerce systems has been a great challenge, due to the high costs associated with infrastructure and compliance.
To help retailers face the costs of maintaining their online store, the creation of this system has come that allows a high degree of customization, as well as achieving monetization simultaneously. Imagine that the interior of a supermarket changed its display of products depending on who passed by. With digital technology, this is possible.
According to the report State of Retail Media Survey published by Skai Retail Media programs are doing well. More than seven in ten Retail Media advertisers say they have met or exceeded their retail media expectations in the past year, with 22.6% defining those results as excellent.
Advertisers are investing heavily in the channel and will continue to do so. Nearly 80% of respondents say that Retail Media represents at least 11% of their total marketing budget. And more than 80% say they will increase their Retail Media spending next year.
Driving a positive return on investment and providing lift are top challenges for retail marketers.
There is still room for improvement in this relatively young channel that is undoubtedly helping everyone take advantage of the new habit of “shopping online”.