Retail media can help brands advertise in places where consumers are already spending their time. As mentioned earlier, retail media refers to the ads actually placed on a retailer’s media network. Brands purchase these ads across these digital channels to help customers discover and learn about them as they shop. Think of retail media like a “digital shelf.” It can help brands further increase their visibility to shoppers, much like how in-aisle specials, promos, and deals can stand out to shoppers in physical stores.
Additionally, when brands advertise on a retailer’s website or app, the ads can feel more relevant to consumers who are browsing online. And when shoppers engage with a brand’s retail media or purchase their products from an online store, the third-party brand has an opportunity to receive first-party insights that can help them better understand their audiences’ shopping patterns. This information can help brands tailor their products and messaging to better serve shoppers.
As the advertising industry evolves, access to first-party insights is becoming more important for brands. Marketers are seeing how retail media networks can help them better plan, make more informed media buying decisions, and implement more strategic campaigns. Having first-party information is a main reason consumer packaged goods (CPG) brands say they chose to work with retail media networks, according to 2021 research by eMarketer.4 And research from McKinsey found that 75% of non-CPG advertisers have plans to increase their investment in retail media networks too.5