The concept of retail media

The concept of retail media

| Blog | author: Monika Torokne Nagy

Retail media has emerged as a bright new star in the online marketing sky. It's a new and highly effective tool for advertisers looking to gain information about their audience and increase their customer base, and for retailers offering the platform to help them generate extra revenue. Retail media is also playing an increasingly important role, thanks to the growing focus on the customer experience. Let's look at what retail media is, what types it has and how the ecosystem is built.

What is retail media?

The essence of retail media is that brands' ads are displayed on the interface offered by the retailer, such as the website, the webshop or the app. These ads reach the consumer at the point of purchase, thus increasing the chances of a purchase.

Ads on retail media channels can be placed in a variety of places, such as the home page, category page, search results page or even the product page.

The retail media ecosystem

Retail media is a multi-stakeholder ecosystem. Find an introduction to these players below.

  • Advertisers: advertisers are brands who want to increase their reach thus increasing sales.
  • Media owner: the retailer itself, who offers the retail media channel platforms.
  • Retail media companies: their role is to help connect media owners with advertisers.
  • Retail media networks: digital advertising platforms based on the interconnection of retail websites and apps.
  • Consumers: consumers are an important part of the ecosystem as it is ultimately their attention that needs to be captured. Thanks to retail media, they can have a personalised experience.

The advantages of retail media

In the digital age, retailers have an increasingly important role to play in the online space, as more and more shoppers choose to shop online. In this environment, retail media plays a key role in sales strategies and marketing campaigns.

One of the key benefits of using retail media is that it makes advertising more effective. Data analytics and targeted advertising can help retailers increase ad targeting and accuracy. Promotional content is only shown to people who are genuinely interested in the products and services. This benefits both retailers and shoppers, who are exposed to the content they need.

This also brings  an improved customer experience, supported by the fact that the data collection of media-owning retailers has made it much easier to identify customer habits and preferences. By using retail media, advertisers have access to more effective advertising options to better target audiences and increase conversions. The data allows advertisers to better understand their target audience and thus develop more effective advertising strategies.

The undisputed advantage of retail media is revenue generation. Retailers who sell their advertisement zones set up a system that works in the background, requires no effort and yet generates regular revenue through advertising. In the case of Inhabitad’s retail media solution, currently the cost to the retailer to set up the system is zero, so all that is needed is to count the revenue. The easy-to-use, self-service system allows operators to promote brands in a consumer-centric approach.

Retail media therefore plays a crucial role in developing online sales strategies and improving customer experience. Its use is essential for retailers who want to be successful in the online marketplace and increase sales in the virtual space. With the trend of retail media advertising on the rise year on year, we look forward to seeing what changes the online advertising market will bring.