Retail media encompasses all forms of advertising that are suitable for displaying advertisements to customers at or near the point of purchase. This type of media can be used by retailers to promote their own products, but it is especially beneficial for brands and suppliers, who can use it to advertise their own brands and products. Common techniques include in-store advertising, online advertising, sampling, loyalty cards and coupons or vouchers.
This is not actually a new concept, retailers and brands have always advertised in and around physical stores or in newspapers and other places. However, with the rise of e-commerce and the use of digital marketing tools, the role of retail or commercial media has changed and its potential has been greatly enhanced.
The increasing use of retail media also relies on the valuable customer databases that retailers have in-house, which enable advertisers to target customers with relevant, personalised ads in a data-driven way, whatever the retail media channel. These retailer databases are also essential because, due to tightening data protection regulations, data collected by third parties (third party data) will no longer be used to target advertising in the way it was previously. At the same time, first-party data is an excellent tool to implement effective targeting practices while ensuring maximum compliance with data protection rules.