May 18, 2023 By: JK Tech
The retail landscape has undergone a significant transformation over the past decade, with the rise of e-commerce and the proliferation of digital devices fundamentally changing the way consumers shop. With the advent of digital technology, retailers have been able to capture and analyze vast amounts of consumer data, which has given rise to a new phenomenon: Retail Media.
Retail media is a form of advertising that allows brands to promote their products and services within the context of a retailer’s platform. This can include in-store advertising, online advertising, and advertising on mobile devices. Essentially, it involves retailers monetizing their platforms by selling advertising space to brands. eMarketer estimates that advertisers in the US are on track to spend more than $37 billion on retail media networks this year, an increase of about a fifth from 2021.
This relatively new phenomenon has emerged as a result of the growth of e-commerce and the digitization of retail. Retailers have long been in the business of selling products to consumers, but they have traditionally relied on manufacturers to advertise their products. With the rise of digital technology, however, retailers have been able to capture vast amounts of data about their customers and their buying habits.
The data has given rise to a new business model, where retailers are now able to sell advertising space on their platforms to brands. This has proven to be a lucrative revenue stream for retailers and has also given brands an opportunity to reach their target audience in a highly targeted and personalized way. According to Forbes, retail media is about reaching individual shoppers at or near the point of purchase, or point of choice between two products, brands, or actions.
Online Retail Media
Online retail media has emerged as a major force in the digital advertising space. Retailers such as Amazon, Walmart, etc. have built powerful digital platforms that allow brands to advertise to their customers in a highly targeted and personalized way. These platforms are powered by sophisticated algorithms that analyze vast amounts of data to deliver highly targeted advertising to consumers.
For example, Amazon’s advertising platform allows brands to target customers based on their shopping behavior, purchase history, and demographic profile. This has proven to be an effective way for brands to reach their target audience and drive sales.
In-Store Retail Media
In-store retail media has also emerged as an important way for retailers to monetize their platform. In-store advertising can take many forms, including product displays, digital screens, and floor decals. These advertising channels allow retailers to promote their own products, as well as the products of other brands.
For example, a retailer might use a digital screen in their store to promote a new product launch, or they might use floor decals to direct customers to a specific product category. These advertising channels are highly visible and can be a powerful way to drive sales and increase brand awareness.
The Future
The rise of retail media is showing no signs of slowing down. As retailers continue to capture vast amounts of data about their customers, they will be able to offer more sophisticated advertising options to brands. This will include more personalized and targeted advertising, as well as new advertising channels that have yet to be invented.
One of the most exciting areas of innovation in retail media is the integration of augmented reality (AR) and virtual reality (VR) technology. AR and VR have the potential to transform the way consumers interact with products and could provide brands with new and exciting ways to reach their target audience.
Retail media is a new and exciting phenomenon that has emerged as a result of the digitization of retail. It is a powerful way for retailers to monetize their platform, and for brands to reach their target audience in a highly targeted and personalized way. As the world of retail continues to evolve, we can expect to see even more innovation in the world of retail media.
