What do you know about retail’s $100bn media opportunity? Retail media isn’t a new concept – but it’s starting to make waves across the digital marketing industry, with a new band of tech providers emerging to help retailers generate meaningful revenue streams from their media and first-party data.
The rise of retail media has paved the way for large retailers to potentially become highly effective channels for marketing dollars – enabling them to create meaningful revenue streams that put their customer traffic and first-party data to work to sell ads or services to brands, through owned channels – websites, mobile apps, branded emails, in-store screens, social media pages, etc – and beyond.
“Retailers are often the interface between customers and brands, so giving advertisers the opportunity to communicate to and engage with their customers as they’re making a purchase decision is of huge value to brands,” says Nick Ashley, head of media and campaign planning, Tesco.
With changes to third-party cookies and Apple’s IDFA deprecation, we could be seeing the start of the data arms race. Tesco launched a major new media offering at the end of 2021 and has since unveiled the all-in-one platform Dunnhumby Sphere as it looks to corner the retail media market. Boots has its own in-house agency, Boots Media Group, ramping up access to rich first-party data gleaned from the Boots Advantage Card loyalty scheme, and Asda Media Partnerships leverages Asda’s owned and operated platforms to help brands reach customers throughout the online buying journey.
A big attraction with retail media is measuring performance. Since both ad placements and product sales take place on the same platform, “it offers advertisers a unique ‘closed loop’ of insights: real data-backed advertising that can be accurately linked to sales,” says Ollie Shayer, director omnichannel media and planning, Boots UK and ROI. Thus, it allows advertisers to track the impact and ROI of their ads and be able to optimize their strategies more accurately.
“As a retailer, we are in a unique position to understand what customers are buying, be it by store, day of the week or time of day, and with what other items,” adds Alex Crowe, head of Asda Media Partnerships. “So, with the dynamic assets and rich data you can drive customer relevancy at the point they’re making decisions then provide comprehensive reports on the success of the campaign, both soft measures but also harder metrics like the impact on sales.”
As retail e-commerce sales continue to rise, savvy retailers are now looking to follow the lead of giants including Amazon and Walmart to capitalize on the increasingly incredible opportunity that is retail media.
In this white paper, The Drum and InMobi explore the challenges and opportunities for retail media, offering actionable insight and industry viewpoints from Tesco, Asda and Boots to help brands and retailers prepare for the retail media revolution.
It’s time to talk about retail media. Download the white paper for everything you need to know.