The idea behind retail media is that it is much more effective to encourage consumers to shop if they are exposed to targeted advertising during their shopping journey. The case for retail media is borne out by the statistics - in the US, for example, by the end of 2022, digital retail media spending will exceed $40 billion, three times the pre-COVID-19 total. In this blog post, we look at how to integrate a retail media strategy.

Types of retail media

So the essence of retail media is that ads are placed along the customer journey. There are three main types: on-site retail media, off-site retail media and in-store retail media. In-store retail media can be classic / analog (flyer, stand, etc.), or displayed on a digital interface. On-site and off-site can only be digital. 

In all cases the principle is the same, but the strategy is different. Let's get to know them in more detail!

The in-store retail media

In the case of in-store retail media advertisements, flyers, projectors, posters are placed in the shop. Here, too, the customer encounters the advertisements during the shopping process, while walking between the aisles or at the checkout.

Digital retail media

This is the so-called e-commerce media. In this case, a framework is provided, a software backbone that allows the placement of advertisements on the websites of retailers. Adverts can appear in different ways, for example on the homepage, on the results page of an online shop or on the product page.

Retail media is not new, but digital has started to take off in the last decade. And according to industry forecasts, it has not yet peaked and will continue to grow in the future.

Integrating a retail media strategy

Retail media strategy defines the type of retail media we want to use, for what purpose and with what messages. Its integration should aim to reach marketing objectives. Be clear about what tools you are using and why. Of course, it is important to keep up to date with current trends, but you should not override common sense.

It's part of the marketing strategy, and within that it falls under the umbrella of the digital strategy, at least as far as digital retail media is concerned. Here are some issues to think about:

• What is its goal: do we want to achieve short- or long-term success?
• What exactly do we expect from the ads? What do we consider success?
• What strategy do we follow, e.g.: recommend similar products, recommend related products, etc.
• How much can and will we spend on advertising?

It's important to be aware that the more channels you run your messages on, the better synergies you can create, and the more your ads can support each other. However, be careful not to oversaturate, as this will not attract customers, but rather repel them.

To evaluate a retail marketing strategy, it is essential to measure its effectiveness. This can only be truly effective if you look not only at the units, but also at the big picture.

Why integrate a retail media strategy into your digital strategy?

Integrating a retail media strategy has many advantages. Here are some of the most important ones.

Replacing the Cookies

The disappearance of third-party cookies has posed a challenge for the experts. But thanks to retail media, data can be replaced, and accurate targeting is possible. Media networks provide a wealth of data to advertisers, who can analyse and interpret it to refine their messages and target audiences.

Instead of TV spots

As a general trend , people increasingly avoid TV advertising. This means that a once very strong advertising platform is disappearing. Retail media advertising offers an alternative option for brands.

Growing e-commerce

Increasing e-commerce is driving brands to look for opportunities to capitalise on this growing trend. Retail media networks offer a great opportunity to enhance visibility and ultimately drive revenue.

Beneficial for all

This type of advertising technique has benefits for the ad network owner, the consumer and the brand. It's non-intrusive, the user experience is not compromised, it's improved, and retailers can generate additional revenue.

Can be utilised to achieve a wide range of marketing objectives

Retail media strategy defines the marketing objective we want to achieve. This can take many forms: from raising awareness, through building engagement, to driving purchase.

ROI oriented

A well-constructed marketing strategy also includes how and when the investment will be recouped. Retail media is easy to follow, costs are clear and campaigns can be continuously optimised.

Inhabitad offers a well-constructed complex system to get you involved in retail media. We'll help you understand how to generate extra revenue from your online store traffic, how to enhance the shopping experience and how to drive sales for the brands that advertise on your site, so that more and more people want to advertise on yours.

Wondering how Inhabitad's easy-to-use, self-service interface works? Request a demo now!