Retail media networks are a type of advertising platform that operates within a retail environment. It allows retailers to monetize their properties, both online and at physical sites, by selling advertising space to advertisers. The ads are typically targeted to the retailer’s customers based on their browsing and purchasing behavior, demographics, and other relevant data. This allows the advertisers to reach their desired audience while retailers generate revenue from the ads and enhance the overall customer experience.
An in-store retail media network work by leveraging displays, screens, or other advertising mediums to promote products or services within a physical retail environment. When placed strategically throughout the store, they can be effective in capturing shoppers’ attention and influencing their purchasing decisions. Here’s a general overview of how in-store retail media networks can be used.
Advertising inventory
In-store RMNs offer advertising inventory, which refers to the available space within the physical retail environment. This can include digital displays, kiosks, shelf-edge screens, or other types of in-store media placements.
Advertiser campaigns
Advertisers can create and manage advertising campaigns that are designed to target specific audiences or promote particular products or services. This may involve creating digital ads, videos, or other types of multimedia content that can be displayed on the in-store media placements.
Targeted ad delivery
In-store retail media networks often use data and analytics to deliver targeted ads to specific audiences. This may involve using customer data, purchase history, or other relevant information to tailor the ads to the preferences and behaviors of shoppers in the store.
Ad display and monitoring
The ads are displayed on the in-store placements such as digital displays or screens, and are typically monitored and managed in real-time to ensure optimal performance. Advertisers may also have access to analytics and reporting tools to measure the effectiveness of their campaigns.
Revenue sharing
in-store retail media networks often operate on a revenue-sharing model where the retailer and the network operator share the revenue generated from the ads. This can provide an additional revenue stream for the retailer and a source of income for the network operator.
Customer engagement and experience
In-store retail media networks aim to enhance the overall customer experience by providing relevant and engaging content that may inform, entertain, or assist shoppers during their in-store journey. This can help drive customer engagement, increase brand awareness, and potentially influence purchasing decisions.
The RMN cookie solution
Replacing third-party cookies is another pivotal use case for in-store RMNs. As more and more platforms phase out support for third-party cookies due to privacy concerns, advertisers and publishers have been looking for alternative ways to target and measure their campaigns, and RMNs have several advantages over third-party cookies.
- They can offer more accurate targeting since they have access to first party data that third-party cookies don’t. In-store retail media networks have access to a wealth of data about customers’ behavior and preferences, which can be used to create highly targeted advertising campaigns. By leveraging this data, retailers can reach customers with ads that are highly relevant to their interests and needs in order to drive sales and build brand loyalty.
- They offer a direct relationship between the advertiser and the consumer, which can help build trust and loyalty. Consumers rarely want to be inundated with irrelevant information but value pertinent insights. With a retail media network, retailers can provide consumers with greater access to the products and personalized information they need to make useful purchasing decisions. In doing so, retailers and advertisers not only build trust in the brand, they reduce the likelihood of consumer dissatisfaction and returns.
- They strengthen the relationship between the retailer and product vendors by creating enhanced data-sharing opportunities. Through retail media networks, retailers can leverage their own first-party customer data and advertising technology, providing a way for retailers to generate additional revenue streams and for advertisers to reach consumers in a targeted and relevant manner.
Overall, in-store retail media networks are an evolving area of retail marketing that aims to bridge the gap between online and offline shopping experience. They can leverage advertising to create an additional revenue stream for retailers, provide targeted and engaging ads to shoppers in physical retail environments, and enhance the customer experience.
For a deeper dive into retail media networks, check out these resources:
Retail media networks and the MarketDial solution
Advertising vehicles for in-store retail media networks
How A/B testing supports in-store retail media networks
