Online commerce is taking off on an unprecedented scale, while fundamentally changing the world of retail. More than 2 billion people around the world now shop online. The online advertising market is following this trend. According to statistics, digital advertising will account for 66% of total advertising spend in businesses by 2023. This also means that there will be huge competition between advertisers, so it's no wonder that those who want to stay ahead of the competition are looking for alternative advertising solutions. Such solutions could include networks run by retail media companies. Let's see what retail media companies are!
What are retail media companies?
Retail media companies are companies that own a retail network, i.e. they operate various digital channels, and offer these media platforms to a third party in exchange for advertising money. This gives advertisers a huge opportunity to reach customers where and when they are already buying.
The development of retail media companies and the networks they offer has been catalysed by the boom in e-commerce, partly driven by the COVID epidemic and the lockdowns it has brought. Commercial networks have been so buoyant that brands are now taking this advertising opportunity into account. But what are retail media networks? Let's look at the details!
Retail media networks
A retail media company essentially creates an advertising business, and at the heart of its activity is the sale of the advertising space it operates, which is the source of its revenue. Advertisers can therefore buy advertising space on the media platforms of retail media companies. In addition, advertisers have access to customer data, which allows them to track customers along the buyer journey, to contact them in a more targeted way and to target them with personalised messages. Through product recommendations, they can drive and track the customer journey and collect even more information and data.
Understanding customers' habits and 'mindsets' is an increasingly important task. With the development of advertising technology, more detailed data can be obtained. With the right data analytics solutions and tracking, the number of customers and the turnover of an online store can be increased significantly.
This is a very effective way of advertising. Think about it: which hunter is better off blindfolded and shooting 100 arrows or one who uses only a few but stays focused and concentrated. Thanks to the fact that retail media networks allow more precise targeting, the return on investment can be higher. This is more profitable and beneficial for companies in the long run.
Thanks to retail media companies, retailers have a new option beyond traditional marketing solutions, a new source of revenue through the sale of surfaces. And those who buy advertising space can generate more revenue by marketing their products to a more relevant audience.
Inhabitad helps you generate high margin revenue streams by offering retail media solutions to your partners. We bring you the next generation of retail media platforms, a technology that generates extra revenue, supports brands to grow and significantly improves shopping experience.
The Inhabitad platform is easy to use for advertisers, and also provides the flexibility to allow marketers to tailor the key parameters to their own needs. Advertising is as simple as selecting the campaign format, uploading the product and associated creative, and then setting up automatic or manual targeting. The advantage of the ad construction is that you only pay for the result, which can be impressions, clicks or conversions.
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