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In an increasingly competitive retail landscape, setting your brand apart is no easy feat. Amidst the crowd of retailers offering similar shopping experiences, Omnichannel Fulfillment stands out as the gold standard for engaging customers. To truly succeed in this digital age, retailers must seamlessly serve customers across multiple channels, and the key to achieving this lies in Retail Media Networks (RMNs).
Unveiling Retail Media Networks: A Path to Omnichannel Excellence
Retail Media Networks, or RMNs, offer a comprehensive solution to the challenges faced by retailers, enabling them to monetize media and data assets. These networks empower retailers to deliver a unified and uninterrupted shopping experience across diverse platforms, paving the way for long-term omnichannel fulfillment.
This blog delves into the best practices for harnessing the power of RMNs to achieve omnichannel fulfillment. It draws inspiration from notable examples set by industry giants while addressing the potential challenges in this transformative journey.
Retail Media Networks serve as an advertising infrastructure that empowers retailers to connect with both brands and consumers. This digital ecosystem encompasses a diverse array of assets, including mobile apps, email lists, websites, and more. Retailers open up their networks to advertisers aiming to engage specific consumer segments with highly tailored and personalized advertisements, creating a new revenue stream.
One fundamental aspect that makes RMNs a game-changer is their bidding technology. Retailers gain access to a wealth of consumer data, encompassing preferences, browsing habits, and purchasing patterns. This data is a goldmine for third-party brands and retailers seeking to fine-tune their advertising strategies, enabling precise ad delivery and improved targeting.
Forbes predicts that spending on Retail Media Networks in the United States alone will reach a staggering $160 billion by 2027. This innovative approach to retail advertising is set to surpass social advertising, emerging as one of the most significant digital channels globally.
Leading retailers are at the forefront of embracing RMNs, with Hy-Vee‘s “RedMedia” and Kroger‘s “Kroger Precision Marketing” setting the bar to new heights.
Hy-Vee, Inc. has redefined the RMN landscape with the launch of RedMedia, empowering brands to connect with customers in more meaningful ways and drive personalized omnichannel marketing strategies.
This innovative network provides brands with profound insights into customer lifestyles beyond demographics and buying habits across multiple platforms. Hy-Vee’s status as Retailer of the Year, one of America’s Most Trusted Brands, and 2023’s Innovator of the Year underscores its leadership in the Retail Media Network space.
Kroger Precision Marketing (KPM) has taken control by bringing services in-house, and creating a new RMN standard. Powered by first-party shopper data, their advanced advertising platform offers features like search-based insights and campaign management. KPM’s mission is to streamline retail media buying for a more personalized shopping experience, with plans for future expansion. This move toward in-housing showcases KPM’s dedication to technological innovation and seamless advertising.
As the retail landscape evolves and diversifies, scalability becomes a critical need. Retail Media Networks emerge as a reliable source of first-party data, empowering retailers and brands to craft strategies informed by accurate insights. This data-driven approach plays a pivotal role in steering retailers towards omnichannel fulfillment, the transformative factor that aligns their strategies with the ever-evolving consumer landscape.
When RMNs are leveraged effectively, brick-and-mortar retailers can seamlessly execute omnichannel strategies. Here’s a comprehensive approach to achieving this synergy:µ
Retail Media Networks act as valuable tracking tools, offering deep insights into customer behavior, preferences, and shopping patterns. This wealth of data fuels empirically-based segmentation and facilitates sophisticated personalization, from marketing messages to promotion planning.
Harness the data insights to tailor the customer experience consistently across all channels. Distinguish between frequent buyers, occasional shoppers, and deal-seekers, ensuring their shopping journeys are optimized. A well-executed omnichannel strategy must uphold customer-centricity both online and in-store.
RMNs provide real-time insights into consumer decisions, empowering retailers to respond swiftly to market changes. The agility of these networks enables retailers to test and iterate marketing efforts, ultimately optimizing promotions and ensuring the success of their omnichannel fulfillment strategy.
By providing real-time insights into high-demand items and cart additions, RMNs empower retailers to fine-tune inventory management across all channels, preventing overstock and shortages. Accurate inventory forecasts improve the execution of omnichannel fulfillment strategies.
RMNs serve as centralized hubs of information, granting brands control over product presentation, ad positioning, targeted audience selection, and real-time campaign adjustments. Robust analytics aid in measuring performance based on predefined KPIs, empowering brands to optimize campaigns and drive higher ROI.
Leading retailers have ventured into the world of Retail Media Networks with remarkable success
As one of the pioneers, Amazon established “Amazon Ads” in 2012 and has since dominated the retail media advertising market. According to Insider Intelligence, Amazon will capture 75.2% of the retail media advertising market in 2023. The American tech giant is also revolutionizing the sector, developing on-site and off-site upper-funnel ads, like video ads accessed via Amazon DSP (Delivery Service Partner).
Walmart’s “Walmart Connect” emerged as the second-largest Retail Media Network in the U.S., generating a substantial $2.7 billion in ad revenue in 2022 alone, and focusing on customer-centric propositions.
According to Rich Lehrfeld, SVP & GM at Walmart Connect, they wanted to build valued propositions to customers through their newly established RMN and create new experiences in a customer-centric way.
“Roundel” is Target’s attempt to bring brands to the community it curated, seamlessly integrating them into their shopping path and behavior. Target’s retail media network generated over $1 billion in ad revenue in 2022, running display ads on its website, mobile app, and across more than 150 premium publishers.
With over 183 million unique visitors per month, “Retail Media+” pushes the cart to the top in the Retail Media Network realm. After noticing the potential of advertising on its own platforms, Home Depot launched its own RMN in 2019, offering supplier media buying opportunities both on-site and on its media channels.
Retail Media Networks play a pivotal role in achieving omnichannel fulfillment by providing first-party data, driving personalized marketing strategies, and delivering tailored shopping experiences. Marketers are increasingly investing in RMNs, acknowledging the precision and potential they offer in reaching consumers where they are. To fully leverage this potential and optimize inventory management for sales growth, retailers should explore advanced AI-powered solutions. These technologies enhance data processing, enabling more accurate promotion planning and the seamless execution of omnichannel fulfillment strategies.
About Cognira
About Cognira
Cognira is the leading artificial intelligence solutions provider for retailers. Cognira is passionate about helping retailers unlock valuable, transformative business insights from their data.
We know retail. We love data.
To learn more, check out our website at cognira.com or contact us today to get started.
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