In a word, retail media networks are advertising platforms retailers set up on their website, app, or other digital platforms for third-party businesses. It’s the eCommerce version of in-store advertising.
A retail media network is effective because customers are more receptive to ads when they’re shopping. A customer may find your ad annoying when it interrupts their YouTube video. But it may be helpful when they’re shopping online for your solution. And because sales happen closer to the ads, it’s easier to calculate ROI.
Over 30 per cent of consumers are shopping more online following the pandemic. So, it makes sense that more digital advertising options are growing around eCommerce. As such, 74 per cent of brands have dedicated budgets for retail media networks.
Interested in taking advantage? Here’s what you need to know.
Working With a Retail Media Network
Amazon is Canada’s top eCommerce market with net sales of USD 9,818 million in 2021. It probably won’t surprise you to learn that they’re a big retail media network player. Called Amazon Advertising, it works like Google Ads. You bid for ads and pay whenever your ad is clicked.
It also probably won’t surprise you to learn that Amazon has been ahead of the curve here. They started the ball rolling in 2012 and they currently own almost 90 per cent of retail media ad spending in the US. Walmart is a distant second with 6 per cent.
However, this dynamic is changing. Eighty per cent of advertisers say they use at least one more retail media network in addition to Amazon.
Working With Retail Media Networks
For brands looking to work with multiple retail media networks, some platforms enable you to launch campaigns across multiple providers. For example, Criteo partners with Walmart, Staples, Best Buy, and forty other businesses across Canada and beyond.
Having access to multiple retail media networks allows brands to work with niche providers. A niche retail media platform provides access to highly targeted audiences, which typically have higher conversion rates.
Further, Criteo allows brands to create their own retail media network. If your website has large amounts of traffic, you can offer that to third parties to create a new source of income.
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