What is Retail Media and Why is it Essential for Modern Businesses?
E-commerce is more popular now than ever before. Driven by an increase in digitalization and further boosted by the Covid pandemic, online shopping has become the norm for consumers worldwide. In 2021, the European e-commerce growth rate soared to 13%, with a turnover of over €700 billion. With that trend set to continue, brands and retailers are looking to take advantage of this seismic societal shift.
One of the biggest game changers currently happening within the consumer goods industry is the explosion of eRetail media. We take a look at how this new phenomenon differs from traditional online marketing, which companies are already benefiting, and exactly what the advantages are of investing in eRetail media.
Retail Media enables brands to reach shoppers with relevant ads near the digital point of sale on retailer, marketplace websites and APPs. The retail media market will grow by 25% per year to $100 billion over the next five years and will account for over 25% of total digital media spending by 2026.
What is eRetail Media?
As the phrase suggests, eRetail media involves electronic or online advertising on retailer websites. This type of promotion can come in a variety of forms, from static banners to carousel ads displaying images and videos. Its purpose is to draw the attention and influence the decisions of a customer who is already in the process of, or at the point of, making a purchase. Examples include:
- Sponsored product ads: These adverts feature on search results and product pages, the most obvious example being those found on Amazon. Designed to promote individual listings using keyword targeting, sponsored products increase brand visibility and offer an efficient and effective route to relevant shoppers. This can lead to a significant return on ad spend (ROAS).
- Audience ads: Tailoring advertisement campaigns to specific groups. One of Europe’s largest beauty platforms, Douglas, teamed up with retail marketer Criteo to launch their audience ads to the German market in the lead-up to Christmas 2020. The campaign was an instant success, with conversion rates increasing on average by a staggering 57%.
- Commerce display campaigns: Smart display ads can make a difference in ensuring a lucrative e-commerce campaign.
What are the Benefits of eRetail Media?
With the ongoing expansion in the e-commerce industry, many market leaders are turning to the likes of Criteo to cement their position and ultimately increase sales. Businesses selling consumer goods and make-up and fragrance companies, in particular, have much to gain from investing in eRetail media. Just as in the above example illustrated by Douglas, several European web stores, including Notino and Flaconi, are already reaping the benefits.
Recent online developments, such as the pending dissolution of third-party cookies, have changed how operators work. New approaches are needed to capitalize on first-party data that can allow retail platforms to monetize this information and accompanying traffic while giving retailers a profitable way of advertising to customers at the point of sale.
And these advantages stretch across the board. With eRetail media, retailers enjoy more product sales as consumers are able to find solutions quickly and effortlessly. Plus, they profit from the combined revenue recruited from secondary ads. Suppliers, in turn, reach the right customers much more effectively, and finally, shoppers benefit from a more streamlined experience that delivers relevant results without the distraction of unnecessary ads.get in touch
MORGAN ANDREWS – RETAL MEDIA
Retail Media enables brands to reach shoppers with relevant ads near the digital point of sale on retailers websites. Talk to a MORGAN ANDREWS expert about your retail media goals and we will find together with you the right strategy. MORGAN ANDREWS experts have deep knowledge of retail media in the fashion, retail, make up and fragrance industry. Our experts have successfully managed project for companies like COTY, Hugo BOSS, GUCCI, CK, Chloé.get in touch