Top 11 Retail Media Questions Answered

ADvendio
11 min readMay 17, 2023

We researched the most frequently asked retail media questions for this article with the goal to provide detailed answers to help you get to know the industry, and to highlight the opportunities and challenges that retailers and brands face. So let’s get right into it and start with the basics.

What is retail media?

Retail media refers to advertising and marketing initiatives that take place within the digital storefront of a retailer or e-commerce platform. It’s a form of advertising that enables brands to promote their products to shoppers while they are browsing, searching, or making purchases on a retailer’s website or mobile app.

Retail media typically operates on a pay-per-click or cost-per-impression basis and allows advertisers to target specific audiences based on demographics, behavior, and shopping history. Some examples of retail media include sponsored product listings, display ads, and product recommendations.

Retail media has become increasingly popular in recent years, as e-commerce has grown and retailers have sought new revenue streams. For retailers, retail media can be a valuable source of revenue, as well as a way to increase customer engagement and loyalty. For brands, retail media provides a way to reach consumers at the point of purchase and to measure the effectiveness of their advertising campaigns.

What are retail media networks?

Retail media networks are advertising platforms that operate within the digital storefronts of retailers or e-commerce platforms. These networks allow advertisers to reach consumers while they are browsing, searching, or making purchases on a retailer’s website or mobile app.

Retail media networks typically offer a range of advertising formats, including sponsored product listings, display ads, and product recommendations. They also provide targeting capabilities that allow advertisers to reach specific audiences based on demographics, behavior, and shopping history.

Retail media networks can be owned and operated by retailers themselves, or by third-party companies that specialize in providing advertising solutions for e-commerce platforms. Some examples of retail media networks include Amazon Advertising, Walmart Connect, and Target Media Network.

The rise of retail media networks reflects the growing importance of e-commerce in the retail landscape, as well as the increasing demand for targeted and measurable advertising solutions. By leveraging their data and customer insights, retailers and e-commerce platforms can create valuable advertising opportunities for brands, while also generating new revenue streams for themselves.

What are the benefits of retail media for retailers?

There are several benefits of retail media for retailers, including:

Revenue generation: Retail media provides a new source of revenue for retailers. By offering advertising opportunities to brands, retailers can monetize their online traffic and generate additional income.

Increased customer engagement: Retail media allows retailers to offer a more personalized and engaging shopping experience for their customers. By providing targeted product recommendations and promotions, retailers can improve customer satisfaction and loyalty.

Competitive differentiation: Retail media can help retailers stand out in a crowded e-commerce landscape. By offering unique advertising opportunities and data-driven insights, retailers can attract and retain brands and customers.

Data monetization: Retail media allows retailers to leverage their customer data to provide targeted advertising opportunities for brands. This not only generates revenue for retailers but also provides valuable insights that can be used to improve business operations.

Improved ad relevance: Retail media allows retailers to deliver more relevant and targeted ads to their customers, which can result in higher engagement and conversion rates.

Control over the customer experience: Retailers have control over the ads that appear on their websites or mobile apps, which allows them to ensure that the ads are aligned with their brand values and provide a positive customer experience.

Overall, retail media provides a range of benefits for retailers, including revenue generation, improved customer engagement, and competitive differentiation. As such, it has become an increasingly important part of the e-commerce landscape.

What are the benefits of retail media for brands?

There are several benefits of retail media for brands, including:

Increased product visibility: Retail media provides brands with an opportunity to increase the visibility of their products by placing ads in high-traffic areas of retailer websites or mobile apps.

Targeted advertising: Retail media allows brands to target specific audiences based on demographics, interests, and purchase history, which can result in more effective advertising campaigns and higher conversion rates.

Measurable results: Retail media provides brands with detailed analytics and insights into the performance of their advertising campaigns, including impressions, clicks, and conversions. This enables brands to optimize their campaigns and improve ROI.

Control over ad content: Brands have control over the creative and messaging of their ads, which allows them to ensure that the ads are aligned with their brand values and resonate with their target audience.

Competitive differentiation: Retail media can help brands stand out in a crowded e-commerce landscape. By leveraging the data and insights provided by retail media platforms, brands can create more effective advertising campaigns and gain a competitive edge.

Improved customer experience: By providing relevant and targeted ads, retail media can enhance the shopping experience for customers, resulting in higher customer satisfaction and loyalty.

What are retail media platforms?

Retail media platforms (RMPs) are digital advertising platforms offered by retailers to brands and advertisers. These platforms provide targeted advertising opportunities to brands and advertisers, allowing them to reach potential customers while they are shopping online or in physical stores.

RMPs are typically owned and operated by retailers themselves, and they offer a range of advertising options, including display ads, sponsored product listings, and targeted email campaigns. Brands can use RMPs to promote their products and services to shoppers who are already browsing or making purchases on the retailer’s website or app.

By leveraging first-party shopper data, RMPs allow brands to target their advertising to specific audiences based on factors like purchase history, search history, and other online behavior. This makes RMPs a highly effective advertising channel for brands, as they can reach consumers at a key moment in the shopping journey, when they are actively considering making a purchase.

How do retail media networks work?

Retail media networks (RMNs) are digital advertising networks that operate across multiple retail websites or platforms. RMNs allow brands and advertisers to reach consumers across a range of retail sites, rather than just a single site or platform.

RMNs typically work by partnering with multiple retailers, who agree to display ads from the network on their websites or platforms. When a consumer visits a retailer’s website or app, the RMN uses data about the consumer’s browsing and purchasing behavior to serve them targeted ads.

The data used by RMNs is often collected from multiple sources, including the retailers themselves, as well as third-party data providers. This data is used to build a comprehensive profile of each consumer, which allows the RMN to serve them ads that are highly relevant to their interests and needs.

By leveraging the collective data of multiple retailers, RMNs are able to offer advertisers a much broader reach than a single retailer could provide on its own. This makes RMNs an effective way for brands to reach a wide audience of potential customers with targeted, personalized advertising.

An example of a well-known retail media network is Criteo.

How retail media is reshaping retail?

Retail media is reshaping the retail industry in several ways, including:

Monetizing first-party data: Retailers are able to monetize the vast amounts of first-party data they collect on their customers, including their browsing and purchasing behavior. By leveraging this data to offer targeted advertising opportunities to brands and advertisers, retailers can create a new revenue stream that complements their core retail business.

Improving the customer experience: Retail media allows retailers to offer more personalized and relevant advertising to their customers, which can enhance the overall shopping experience. By serving customers ads that are tailored to their interests and needs, retailers can help shoppers discover new products and make more informed purchasing decisions.

Driving incremental revenue: Retail media provides an additional source of revenue for retailers, which can help offset the costs of running their retail operations. By offering brands and advertisers the opportunity to reach their customers, retailers can generate incremental revenue that can be reinvested into their business.

Providing new marketing channels for brands: Retail media offers brands and advertisers a new way to reach potential customers, beyond traditional advertising channels like television, print, and radio. By leveraging the first-party data of retailers, brands can target their advertising to specific audiences based on factors like purchase history and online behavior.

Increasing competition: Retail media has created a new level of competition among retailers, as they compete to offer the most effective and innovative advertising solutions to brands and advertisers. This has led to increased investment in digital advertising capabilities, as retailers seek to differentiate themselves and capture a larger share of the retail media market.

Overall, retail media is transforming the retail industry by offering new opportunities for revenue generation, customer engagement, and marketing innovation. As the industry continues to evolve, retailers and brands alike will need to adapt and embrace these changes in order to stay competitive in the marketplace.

What do retail media ads look like and where do they appear?

Retail media ads can take several different forms, depending on the specific platform and advertising format being used. Some common types of retail media ads include:

Display ads: These are graphical ads that appear on a retailer’s website or app. Display ads can come in a variety of formats, including banner ads, skyscraper ads, and pop-up ads. They can be targeted based on a range of factors, including the user’s browsing history, demographics, and geographic location.

Sponsored product listings: These are product listings that are featured prominently on a retailer’s website or app, often appearing at the top of search results or in a special “sponsored” section. Sponsored product listings are typically targeted based on factors like the user’s search history and the product’s relevance to their interests.

Email campaigns: Retailers may send targeted emails to their customers, featuring ads for specific products or promotions. These emails can be personalized based on the customer’s purchase history and other online behavior.

In-store advertising: Some retailers offer in-store advertising opportunities, such as in-store displays or signage promoting specific products or promotions.

Retail media ads can appear on a variety of platforms, including the retailer’s website or app, social media platforms, and other third-party websites and apps that are part of a retail media network. For example, Amazon Advertising offers ads on the Amazon website and app, as well as on third-party websites and apps that are part of the Amazon Advertising network. Similarly, Walmart Connect offers ads on the Walmart website and app, as well as on third-party sites and apps like Facebook and Instagram.

What is an example of retail media?

One example of retail media is Amazon Advertising. Amazon Advertising offers a range of advertising solutions to help brands and advertisers reach Amazon’s vast customer base. With Amazon Advertising, brands can create display ads, sponsored product listings, and video ads that appear on the Amazon website and app, as well as on third-party sites and apps that are part of the Amazon Advertising network.

Amazon Advertising uses first-party data to target ads to specific audiences, based on factors like purchase history, search history, and other online behavior. This allows brands to reach potential customers who are actively shopping on Amazon, at a key moment in the purchase journey.

In addition to offering targeted advertising opportunities, Amazon Advertising also provides detailed reporting and analytics tools, so brands can track the performance of their ads and optimize their campaigns for better results.

Overall, Amazon Advertising is an example of how retail media is reshaping the advertising industry by offering brands and advertisers a highly targeted and effective way to reach potential customers.

What’s Actually Going On Behind RMN Walls?

Behind retail media network walls, a complex ecosystem is at work that involves retailers, brands, and advertisers, as well as technology providers and data analytics firms. Here are some of the key components of this ecosystem:

Retailers: Retailers provide the primary platform for retail media advertising, leveraging their first-party customer data and website traffic to offer targeted advertising opportunities to brands and advertisers.

Brands and advertisers: Brands and advertisers use retail media networks to reach potential customers, using first- and third-party data to target their ads to specific audiences.

Adtech providers: Adtech providers offer the technology and tools needed to create, serve, and optimize retail media ads. This can include ad servers, demand-side platforms (DSPs), and data management platforms (DMPs).

Data analytics firms: Data analytics firms help retailers and brands make sense of the vast amounts of data generated by retail media campaigns, providing insights and analytics that can be used to optimize ad performance and improve ROI.

Consumers: Finally, consumers play a critical role in the retail media ecosystem, as the ultimate target of retail media advertising. By interacting with retail websites and apps, consumers generate the data and traffic that fuels the entire retail media network.

Overall, the retail media ecosystem is a complex and dynamic one, involving multiple players and technologies working together to deliver targeted and effective advertising to consumers. As this ecosystem continues to evolve, it will be important for retailers and brands to stay abreast of the latest trends and technologies, in order to remain competitive in the marketplace.

With retail media looking so good, could it have any disadvantages?

While retail media has many potential benefits for retailers, brands, and advertisers, it’s important to also consider some of the potential disadvantages and challenges associated with this emerging advertising channel. Here are a few examples:

Increased competition and higher costs: As more retailers and brands invest in retail media advertising, competition for ad space and audience attention is likely to increase. This can lead to higher costs for advertisers, as well as increased difficulty in achieving a positive return on investment (ROI) for their advertising spend.

Privacy concerns: Retail media advertising relies heavily on data collection and targeting, which can raise privacy concerns among consumers. Brands and retailers must be transparent about how they collect and use customer data, and ensure that they are in compliance with relevant privacy regulations.

Ad fatigue: With so many ads vying for attention on retail websites and apps, consumers may become fatigued or overwhelmed by the sheer volume of advertising. This can lead to lower engagement and click-through rates for ads, as well as a negative perception of the retailer or brand.

Limited reach: While retail media can be effective for reaching customers who are actively shopping on a particular retailer’s website or app, it may not be as effective for reaching customers who are not in the market for a particular product or service.

Overall, while retail media offers many potential benefits, it’s important to approach this channel with a clear understanding of the potential challenges and limitations. By carefully targeting and optimizing campaigns, brands and retailers can maximize the effectiveness of their retail media advertising while minimizing potential drawbacks.

As the retail media industry continues to evolve and scale, we’re sure more and more questions will come up, but we hope this article has provided you with some top level information to the most frequently asked retail media questions to date.

If you are looking to start or grow your retail media network please reach out to us today to learn more about our retail media advertising management platform.

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ADvendio

Publisher’s all-in-one business software solution for efficient ad sales management built on Salesforce with customers in 25+ countries. http://advendio.com/