Retailer media networks are gaining in popularity according to a trends report from the Path to Purchase Institute (P2PI) in the USA. The survey, which includes insights from 166 marketing executives, shows retailer media networks was the number one most important omnichannel tactic in 2022.
In fact, the P2PI survey shows that investment in retailer media networks increased by 58% last year, more than any other omnichannel tactic.
What are Retailer Media Networks?
Retailer media networks are digital platforms that allow retailers to sell advertising space to brands on their e-commerce websites and mobile apps, as well as on other digital channels such as social media and email marketing.
The growth of retailer media networks can be attributed to several things. First, the acceleration of E-commerce sales has led to more retailers investing in their online presence and looking for ways to monetize it. Second, it provides retailers with a new revenue stream by selling advertising space to brands. Finally, it allows brands to reach consumers in a more targeted and relevant way by leveraging retailers’ first-party data to deliver personalized ads to consumers who are most likely to be interested in their products. This can lead to higher conversion rates and a better return on investment for brands.
Retailer Media Networks Important Omnichannel Tactics in Canada Too
In Canada, the increasing popularity of retailer media networks mirrors that of the USA.
How popular?
Last week, I contacted Atedra, the media sales partner in Quebec for IGA, to inquire about a digital media plan for a CPG client. Last year, demand was increasing steadily, but typically marketers could plan a campaign 2-3 months out. Leap forward to today and demand is increasing so significantly brands need to start planning 9 months out.
While retailer media networks are gaining in popularity, here are two things to consider.
First, while marketing budget allocation is increasing, major media are still garnering the biggest slice of the advertising dollar pie.
Second, many large CPG clients I deal with find the cost of entry for retail media quite high. As a result, many are investing in retailer agnostic shopper media through vendors such as Flipp, ShopliftR, AdAdapted and Neptune Retail Solutions who can all target hyper-locally to reach category shoppers to drive purchase consideration and sales conversion.
I am curious what other marketers think about the growth in retailer media networks. Leave a message and share your thoughts. Plus. do not forget to check out the Path to Purchase Institute’s survey results on omnichannel marketing tactics here: https://tinyurl.com/rps4h7jm.
