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In today’s evolving business landscape Retail Media Networks (RMNs) have become players in transforming how brands engage with customers. These networks aggregate advertising, allowing brands to engage with customers directly in the sales ecosystem. Businesses should understand how Digital Advertising Engines operate within Retail Media Networks to optimize offline and online advertising strategies.
Offline Retail Media Networks
Players in Offline Retail Media
Within Offline Retail Media Networks, various players leverage the potential of stores to deliver captivating advertisements.
CitrusAd
CitrusAd is an innovative offline retail media network that combines on-site and off-site capabilities into a single platform. It is the first retail media solution in the industry that combines on-site monetization with Epsilon's off-site expertise. This novel strategy enables businesses to engage with clients not only on their online platforms but also on the broader internet, resulting in enhanced sales both online and in brick-and-mortar locations. CitrusAd's on-site capabilities include advanced features, including sponsored content, banners, and brand pages. Its off-site capabilities utilize the extensive reach of the global privacy-protected CORE IDs. CitrusAd becomes a powerful player in offline retail media by combining factors, providing a thorough and identity-focused solution for firms aiming to optimize their influence in the constantly changing retail environment.
Kroger Precision Marketing
Kroger uses digital screens, coupons, email marketing, mobile apps, and partner websites with the stores. Kroger Precision Marketing taps into the power of purchase information within the Kroger ecosystem to create campaigns that target specific demographics, preferences, and buying habits. This platform is excellent at reaching customers through channels that accompany them on their online and offline shopping journeys. Moreover, Kroger Precision Marketing offers attribution capabilities that allow brands to measure the effectiveness of their campaigns accurately by tracking sales from ad exposure to purchase.
Online Retail Media Networks
Leaders in Online Retail Media
Top online retail media networks include the following:
Amazon
Amazon Advertising, known for its broad customer base, offers several options, including sponsored products, brands, and display ads. With Amazon being a global consumer shopping destination across product categories, the platform welcomes ads from brands in every niche. Amazon Advertising offers the potential for maximizing marketplace sales and surpassing competitors. Similar to Google Ads, Amazon utilizes a user platform where brands can bid on keywords and only pay when their ads get clicked. They offer three types of advertisements: Sponsored Product Ads, Sponsored Brand Ads, and Sponsored Display Ads to provide a way of connecting with consumers.
Walmart Connect
Walmart Connect serves as Walmart's media network that allows brands to advertise in stores and on their e-commerce platform. Walmart advertisers utilize the shoppers' data to create targeted campaigns. With a range of products, including groceries, electronics, beauty items, furniture, hardware, and clothing, Walmart offers an extensive pool of shopper data that can benefit brands with diverse product offerings. Through Walmart Connect’s ad center, brands can showcase sponsored product listings in search results or the Walmart Buy Box. Additionally, they can leverage display ads in the high-traffic areas of the website and app, such as media and banner video options, to enhance visibility.
Best Buy Advertising
Best Buy, an established retailer specializing in electronics, computer appliances, video games, and various other tech products, has been offering access to its customer data through Best Buy Ads since 2022. Through this platform, businesses can take advantage of advertising opportunities such as search ads, display ads, video ads, social media ads, and in-store promotions. By leveraging Best Buy's customer data, advertisers can precisely target their campaigns and measure their effectiveness. It allows them to effectively reach tech consumers in the competitive electronics and technology market.
Digital Signage's Role in Retail Media Networks
Digital signage is an effective platform for marketers looking to target offline screens. It allows advertisers to display their ads in retail businesses, public spaces, and events by seamlessly merging with non-digital environments.
Amplifying Impact Through Digital Signage
Digital signage is a tool that seamlessly blends the digital realms, amplifying its effectiveness. When strategically placed in spaces, retail digital signage captivates consumers by presenting appealing content. By bridging the gap between offline and online channels, digital signage guides consumers to platforms through elements like QR codes, creating a cross-channel experience.
Digital Signs as a Catalyst for Cross-Channel Engagement
In today’s changing business landscape, prioritizing channel marketing is crucial for connecting with potential customers across multiple platforms. Signage plays a vital role in ensuring a cohesive cross-channel experience. As a bridge between channels, digital signs guide customers to locations while providing information about products or services. By incorporating features like QR codes into signs, businesses can enhance channel engagement by directing customers to offers or web pages. It enriches customer experience and gives businesses valuable insights into customer engagement levels, enabling more informed and targeted marketing decisions.
Determining Pricing in Retail Media Networks
Unraveling the Pricing Conundrum
Setting prices in the industry poses challenges as different factors impact them in offline environments. We will delve into the intricacies of media pricing, examining the elements that contribute to costs in both physical settings.
Factors Influencing Online Retail Media Pricing
Crafting a pricing strategy for these marketplaces entails considering the factors influencing pricing dynamics. Here are five elements that influence the pricing strategy of online marketplace platforms:
Cost of Goods Sold (COGS)
The role of the cost of goods sold (COGS) is significant in shaping the pricing strategy for marketplaces operated by vendors. Platforms such as Uber Eats must understand seller’s profit margins to establish a partnership. The commission charged by these platforms needs to align with the expenses incurred by the sellers. That's why Amazon has implemented a commission structure based on categories ranging from 30% to 45%.
Brand Positioning
Known platforms, such as eBay, which has established customer connections hold power when determining prices. The ranking of marketplaces in terms of seller profitability, customer service, communication, and ease of use plays a role in shaping the positioning of brands.
Transaction Size and Volume
Different online marketplaces have priorities. Some platforms focus on a volume of transactions, while others prioritize larger transactions. It's crucial for pricing strategies to align with the transaction model to maintain competitiveness and effectively navigate policies such as Minimum Advertised Price (MAP), which can impact seller partnerships.
Market Demand
Having a defined pricing strategy is essential to address consumer purchasing behaviors. Engaging with your target audience on media platforms is crucial to stay informed about market trends.
Retail Media Networks in the Evolving Landscape of Digital Advertising
Retail Media Networks are a changing and dynamic field in advertising. They seamlessly blend offline channels to create marketing experiences. Brands can utilize platforms like Amazon Advertising, Walmart Connect, and Best Buy Advertising to tap into the power of hyper-targeting. These platforms leverage shopper data to deliver campaigns. The strategic use of signage further enhances the impact by encouraging engagement across retail spaces. The retail media industry will continue to grow, with trends like hyper-personalization, integration of digital retail, and improved measurement and attribution reshaping the landscape beyond 2024.
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