Mastering the $45 billion retail media chance with data-driven accuracy in the US, Europe, and more.
Retail media networks (RMNs) have shifted from trend to essential advertising tools. In December 2023, Deloitte found that 64% of retailers plan to launch RMNs. This makes RMNs the fastest-growing advertising channel in digital marketing. Amazon is the leader in the US. Yet, Walmart Connect and Target Roundel are quickly growing. They are changing the global retail media landscape.
To explore RMNs, use this guide to optimize your campaigns for real ROI. Learn to craft personalized retail media strategies that match important market trends.
What Are Retail Media Networks?
Retail media networks (RMNs) are platforms. Retailers sell ad space on their websites and mobile apps to third-party advertisers. RMNs differ from traditional media. They rely on first-party data from retailers. This includes purchase behaviours and customer insights. This allows for highly targeted and relevant ads.
Key Components of RMNs:
- On-Site Retail Media: Ads shown on a retailer’s owned digital properties, like websites and apps. These ads reach high-intent shoppers, boosting immediate conversions.
- Off-Site Retail Media: Show ads on other websites and social platforms. Use the retailer’s first-party audience data. These ads widen reach while ensuring precise targeting.
- In-Store Digital Media: Retail spaces use digital screens, audio announcements, and interactive displays. These tools connect online targeting with offline shopping habits.
See more definitions in our Commerce Media Marketing Glossary >>
Why Retail Media Networks Are Revolutionizing Advertising:
Unmatched Data Accuracy
RMNs offer insights based on actual purchase behavior, not just inferred data. For example, data from Amazon or Walmart is more valuable than relying on browsing patterns or third-party cookies. This data precision offers brands a unique chance to target ads using real-time insights.
Real-Time Attribution and Closed-Loop Measurement
RMNs allow closed-loop attribution. This means tracking from an ad impression to conversion. Marketers then gain clear insights into ROI. In traditional advertising, this visibility was hard to achieve. In retail media, every step can be measured. This helps data-driven marketers optimize their campaigns effectively and prove incrementality.
High-Intent, High-Converting Audiences
Visitors to retail sites want to buy, which boosts conversion rates. These rates are usually 20-40% higher than those of traditional display ads. This makes RMNs a powerful tool for brands aiming to boost sales and measure their impact.
The advantage is clear but how your brand can harness the RMN space can be confusing so here is an Advanced Strategy for Mastering Retail Media Networks.
Phase 1: Map Your Retail Ecosystem – Identifying Local and Global RMN Opportunities (Week 1)
Step 1: Audit Your Retail Partnerships: Identify current platforms in your strategy. In the US, Amazon and Walmart Connect are key, but also look at opportunities like Target Roundel, Instacart, and eBay. In Europe, Tesco, Carrefour, and Auchan are developing RMN capabilities.
Step 2: Prioritise Your Product Categories: Some products perform better in certain RMN settings. Find high-margin SKUs that can back aggressive bidding or new launches that need ads focused on discovery.
Step 3: Define Your Key Metrics to ensure alignment. Here are some important ones your brand should consider tracking:
- ROAS (Return on Ad Spend)
- Incremental sales lift
- Customer acquisition cost (CAC)
Phase 2: Testing and Strategy Development – Exploring the Right Platforms (Week 2)
In this phase, you’ll start testing different RMNs to understand what works best for your goals. Focus on these key areas:
- High-Intent Conversions
Test Amazon DSP and Walmart Connect. These platforms offer precise targeting based on shopper behavior and are ideal for driving immediate conversions. - Brand Awareness and Reach
Use Target Roundel and Instacart to reach new customers. These platforms are great for building awareness with broader audiences through display and video ads. - Engagement and Retargeting
Leverage Amazon Display Ads or Walmart’s Audience Extension to bring back visitors who have already shown interest in your products. This helps turn previous interactions into sales.
Phase 3: Launch and Optimization – Refining Your Tactics (Week 3)
Real-Time Campaign Adjustments: RMNs allow you to keep changing your ads for all your entire product catalogue. Use Jivox IQ DaVinci to make personalized ad variations. Consider inventory, seasonality, and user behavior. This way, ads will display relevant content.
Continuous Data-Driven Optimization:
- Adjust budget allocations for high-performing campaigns.
- Test creative variations to find the best combinations.
- Use predictive analytics to foresee performance and adjust proactively. (For practical tips, see our post on 3 Steps to a Successful Social Media Personalization Campaign.)
Phase 4: Scaling and Advanced Ad Formats – Unlocking Full Potential (Week 4)
Once you’ve optimized your campaigns, it’s time to scale:
- Shoppable Video: Combine direct purchase paths with engaging storytelling.
- Connected TV (CTV): Expand reach by merging digital and TV.
- Audio Ads: Target commuters and multitaskers during peak engagement times.
Cross-Channel Synergy: RMNs should not operate alone. Create integrated strategies across social media, email, and in-store experiences to maximize campaign impact. (For ideas, read Three Ways Brands Can Pivot Their E-Commerce Marketing Strategy.)
What’s Next in Retail Media Networks
Before brands invest heavily in this space short-term, understanding the long-term vision of retail media networks is crucial for strategic planning. So here’s what’s next in this space:
Global Expansion
While US-based RMNs dominate, interest is growing in Europe, Asia, and emerging markets. Global retailers are putting money into better RMN strategies. This move opens doors for worldwide growth.
Connected TV & AI Integration
In 2024, expect a rise in connected TV ads and deeper AI-powered optimization. These advancements will allow for better targeting and quick adjustments. This will result in highly effective campaigns that can be scaled up.
Leading the Retail Media Revolution
In conclusion, retail media networks are changing how brands connect with consumers. RMNs use real-time data, advanced personalisation, and cross-channel integration. They are the future of advertising.
To succeed, brands need to focus on data-driven strategies. They should optimise in real time and use AI for personalised experiences at scale. At Jivox, we provide tools to help brands harness RMNs and achieve measurable results.