Retail media monetisation
Economic conditions are less than ideal, the world is being rocked by a war and natural disasters, but for the time being it can be said that consumers have not disappeared and are still buying. Sometimes they buy things that are essential to their daily lives, sometimes convenience goods, sometimes tools for the workplace. The point is that they are buying. And if consumers are there, they can't be without advertising to help them find their way around. Retail media networks offer a novel solution. Let's find out what advertising technology is all about and how retail media can be a revenue generator!
Retail media is a source of revenue, as the retail media company sells parts of the online platforms it owns, thus generating extra revenue. Advertisers can then rely on the retailer's data to engage with their audience during the purchase journey.
Retail media can be an important element of revenue generation. Let's look at some examples of where these ads can appear, which ad spaces can be sold
- On the search page: the ads can appear, for example, on the search page of an online store for a given keyword. This is a very effective way of getting the advertisers' product in front of competitors with the click of a button.
- On the product page: shoppers spend more time on the product page before buying, reading the most important facts and information about a given product. It is an excellent place to place related products or services that the customer is likely to need.
- On the homepage: the highest organic traffic typically occurs on the homepage, which is why it is a valuable advertising space that can be well marketed to affiliates and advertisers.
These networks have the potential to generate more revenue, with Walmart, for example, reporting a 240% increase in advertising revenue as early as 2021.
What do advertisers gain?
The strength of retail channels is that shoppers are usually more receptive to advertising while they are shopping. However, the fact that advertisers have access to internal media network data is not negligible, allowing brands to gain deeper insights into the consumer world and understand all the nuances of consumer behaviour. The detailed data covers all media assets and platforms under the retailer's umbrella.
Consumers win too
If we have already mentioned the retailers and advertisers, then of course we cannot leave out the consumers. They benefit from the retail media network because they will see ads that are more relevant and timely for them. The customer experience is improved, as media networks can be used to display personalised messages and offers to customers.
Retail media monetisation can be a great addition to any retailer's business. By selling advertising space, financial stability can be increased and it is easier to deal with rising inflation and rising costs. The more visitors and potential customers the advertiser has, the more revenue can be generated. This is particularly important as typically with this type of advertising, the advertiser only has to pay when a click or conversion is made.
Inhabitad helps retail media to generate revenue. Wondering how? Click for details!