As consumer behaviour changes, online shopping is gaining ground. Globally, it is predicted that 20.8% of all retail purchases will be made online in 2023 and 24% in 2026. The digital advance will require new ways of advertising online. Retail media advertising offers brands a new way to advertise with a wealth of opportunities. In this blog post, we'll show you what you need to know about retail media advertising, what it looks like and what criteria you should consider when choosing a retail media network.

What is retail media advertising?

Ads that appear under the umbrella of retailers are called retail media ads. There are basically three main types:

• In-store, when the ad is displayed in the store. In this case, the advertisement can be a flyer, a poster, for example, and can also be digital, for example if it is displayed on a display.
• On-site, where advertisers pay to appear on retailers' websites.
• Off-site, where the ad is displayed outside the retailer's website. This allows the open web to reach potential customers at every stage of the buyer journey.

These three types allow for a wide range of advertising methods, in this blog post we will talk about digital, on-site advertising.

Retailers who allow brands to advertise on their sites are creating retail networks. This possibility is open to all retailers and webshop owners. If you want to enter this advertising market, you can either develop the necessary back-end system yourself or opt for an off-the-shelf solution. The latter has the advantage of being available much faster and is a much more cost-effective choice. Inhabitad, for example, offers a scheme whereby the system is integrated free of charge, with only a percentage of the advertising revenue being paid.

So the players in the retail ecosystem are the retailers who enable the display of ads, the brands who create those ads, and then there are the consumers who are ultimately the ones who the whole process is about, and who are competing for attention.

Where do retail media ads appear?

Media advertising on the retailer's website can take several forms. The two main types are native, which blends in with the environment and is almost unrecognisable as an ad, and so-called visual ads, which have striking graphic elements. These can be placed on the home page, category page, between search results and on the product page, for example.

It is also possible for brands to retarget customers who have already visited them. These off-site ads serve the purpose of attracting users as familiar content.

Retail media advertising: the benefits

Well-timed ads

The biggest advantage of advertising in retail media is that it reaches consumers while they are shopping - people who are willing to spend money then and there. This makes them much more effective in terms of conversion.

Opening the way to data

Retail media networks collect data about consumers that can be very useful for brands. This is particularly important in the light of the fact that the data that comes through cookies can no longer be counted on. This is a huge advantage that few forms of advertising can offer.

New dimensions of personalization

The data collected by retail media allows brands to create personalised messages. This makes it much easier for them to reach their target audience and increase the chances of conversion.

Conversion tracking

Thanks to the fact that the ads are displayed and sold on the same platform, the success of the ads can be accurately tracked. The consumer journey can be tracked, which further helps to improve messages.

The most popular retail media networks

The market for retail media networks is very colourful. The biggest player is Amazon, which has a lot of advantages in terms of reaching a huge audience and advertising effectiveness, but it also has its drawbacks. There are also disadvantages, such as high competition, high advertising costs and a lack of in-depth analytics.

Big players include retail sites such as eBay, Walmart and Home Depot.

It is essential to see that although the big fish have a significant advertiser base, there is still plenty of room in the market for smaller players. They are much smaller, more personalised, less competitive and very often provide more accurate analysis.

How to make the right choice?

Choosing the right retail media network is becoming an increasingly difficult task, thanks to the growing number of players. The first thing to consider is what resources the advertiser can allocate to this. Pricing is a key factor in deciding which retail media networks to consider.

It's important for a brand to find its niche, the place where it can reach the most relevant audience. For example, if you want to advertise a camera, it is advisable to choose a platform where people interested in the technology are present.

Before making a choice, you need to look at the services offered and the possibilities, such as whether you want international advertising in the future, etc. You also need to know where the brand is going and what its plans are.

A key question is what tracking options the site offers, what analytics are available, what information is provided.

The growth of online shopping and e-commerce is a huge opportunity for brands. Retail media can be used to increase visibility, which can lead to an increase in conversions.

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