The growth of the retail sector online is no surprise, we have been following the statistics for years. Part of this trend is the rise of retail media. The ANA reports that retail media revenues will reach $52 billion in 2023 and jump to $61 billion in 2024. What retail media trends can we expect? We've compiled them in this blog post!
The importance of retail media
The importance of retail media lies in its ability to transform the retail sector, while offering business opportunities for retailers and brands. It is a form of digital advertising that captures consumers' attention when they are shopping and choosing between competing brands and products. It leverages the power of online platforms and advanced targeting capabilities to reach relevant audiences throughout the customer journey.
Retail media allows retailers to monetise their own channels, such as e-commerce websites and apps, by offering digital advertising space to promote products and increase visibility. These ads can be placed on various pages such as the home page, search results pages, category pages and seasonal pages. Retailers can also access off-site advertising beyond their own web capabilities.
Retail media trends
The rise of retail media
Experts agree that retail media are gaining ground and becoming more dominant. Brands are finding it increasingly important to invest in advertising that is trackable and measurable. Most companies think twice about what ads they spend money on, so it's understandable that companies want to make sure the money they invest in advertising is in the right place, a place that helps drive conversions and sales.
The rise of retail media also means that more and more players will emerge, more and more brands will want to benefit. Competition is likely to increase as a result, so quality content will be essential.
Enhancing personalization
With the data available, hyperlocal marketing plans can be developed that vary by geographic region, making advertising more personalised. Delivery and returns are part of the user experience and satisfaction, and these should be flexible.
The availability of data makes personalised advertising possible.
Triumph of smaller players
Amazon, Walmart, Target - just some of the biggest retail media players. Undoubtedly, the big ones are setting a good example, they are a great inspiration, but in reality the market for retail media networks is not saturated, in fact! There is plenty of room for smaller players, too. Smaller networks are able to fill the gaps that the big ones cannot, for example, there is much less competition and they provide more accurate analytics.
Off-site advertisements
Off-site advertising will become increasingly popular in the future. This will help to reach customers who are not currently browsing the retail media network. Advertising is therefore not limited to those who are using retail media, but can reach anybody on the open web.
Smart shops
Retail media can be both online and offline. In addition to online, offline solutions are increasingly gaining ground. This can include in-store advertising, which can take digital form, or tangible advertising such as leaflets. Brands can significantly widen their reach by appearing in stores. In-store advertising can support online advertising by retail networks and increase sales.
The rise of green solutions
Always keep in mind that whatever it is, if it's environmentally friendly, it will be more desirable. A group of people are committed to eco-friendly solutions, and brands can engage these customers.
Self-service options
To increase efficiency, more and more partnerships will be created to improve the technology behind retail media networks and make it easier for brands to buy advertising. While it was true in the past that self-service opportunities were only available for large retail media networks, there are now opportunities for smaller players. Click to see what Inhabitad has to offer!
Augmented reality, virtual reality, voice control
Virtual reality and augmented reality are becoming increasingly important in the retail sector, including retail media. These are enhancing the user experience, as well as voice control, which in the future could even be used to make purchases.
New indicators
As access to data increases, so does the metrics we monitor and track. For example, the linking of digital and in-store sales can open up whole new horizons and of course requires the introduction of new metrics.
Generative artificial intelligence
Year by year, and month by month, artificial intelligence is becoming more and more pervasive. Of course, it is also used by retail media players, for example, to search for keywords, write headlines and addresses when setting up advertisements.
Social trade
Social media is intertwined with everyday life, so it's no surprise that it's growing in retail. It gives shoppers access to more convenient shopping options.
Omnichannel solutions
Experience has shown that omnichannel solutions work particularly well, so more people are likely to opt for multichannel in the future. Amazon is a good example, with 45% of its sales volume coming from non-Amazon sales.
It is worth pointing out that mobile solutions are now essential, so it is important to ensure that the user experience is excellent on mobile.
Harnessing the power of TV
TV advertising is still one of the most popular and effective methods of reaching consumers. This can only be enhanced by the power of digitalization with CTVs. Combining retail media with CTV can have amazing results.
Retail media 2.0
Retail media 1.0 focused on search-led e-commerce, but 2.0 focuses on moving through the sales funnel. Enhanced retail media focuses on visuals, video and streaming TV ads. This also means that branding will play an important role alongside advertising performance. So to get a complete picture of the return on advertising spend, brands need to analyse and examine sales data across multiple channels.
The opportunities in retail media are very diverse, offering beneficial advertising opportunities for all players. Ultimately, it is the consumer who stands to benefit most from an improved user experience and personalised advertising.
