Imagine: a brand sells Indian products for vegetarians and wants to launch advertising for this group of users. To find them on the Internet, the marketer spends a mountain of money in the advertising account. However, the advertising algorithms are not ideal, so some of the leads are not targeted. Result: the brand did not attract customers and did not recoup the advertising costs.
But retail media owners have already collected a variety of customer data, from age to product preferences. And not through dubious tools or cookies, but directly from their online stores, marketplaces, or mobile apps.
This data helps brands target specific groups of shoppers and offer products to the people who are most likely to buy them.
It's like a brand came and said to a retailer, "Give me 30,000 people who are interested in my Indian products. I want to show them ads." The brand dug into its archives, filtered out the vegans from the rest of the users, and handed it to the brand, "Here you go."
Still from the animated film Despicable Me by Universal Pictures
Still from the animated film Despicable Me by Universal Pictures
Personalized offers
On retail media platforms, brands can personalize their offers, gain reach, and earn more. For this, they take, for example, data on what products customers bought last time, and based on this, they make ads with related or additional products. Or they use push notifications , coupons, and email promotions that retailers provide on their platforms.
Short sales cycle
Through retail media, a brand shortens the sales cycle . The reason: there is chile phone number data no need to capture users' attention, warm them up with newsletters, engage them with content, or lure them in with low prices.
On a retailer's platform, consumers are already in the "ready to buy" stage. Which makes sense, since they are on the platform, browsing the catalog and looking at product cards. If a brand ad flashes before their eyes and fits their needs, consumers will buy, and the brand will get a one-click conversion.
Performance reports
Since the brand advertises and sells on one platform, it can analyze how advertising affects sales through reports. That is, it is easy to check whether sales have increased or decreased after purchasing advertising, or everything is the same.
Based on the numbers in the reports, the brand decides what to do with the advertising budget next: cut it, invest more money, or leave it as is.
Flaws
Retail media is tailored for large brands, because retailers are interested in selling more and more expensive ads to increase profits. And large players in the market have money for large advertising campaigns. But small or medium-sized brands, who are short on money, will receive less traffic for advertising.