Retailers are creating various marketing strategies to sell their products. The post-Covid era has opened the eyes of the marketing and advertising industry to different ways of marketing their products and boosting their monthly revenue.
The advent of technology has made it a lot easier for consumers to shop online without stress. The diversity of customers in the market has led some retailers into setting up a Retail Media Network.
What is a Retail Media Network?
This is when retailers come together to form a group. It could be an advertising platform that allows them to stay connected to each other and run in-store advertising.
It is a direct way of advertising and marketing. The advertisers know the audience, and the shoppers know what to expect as well.
CVS (Consumer Value Store) is a typical example of a retail media store that allows different brands to come together and sell to their customers. It’s one of the first brands that start a retail media network.
They provide consumer data for sellers, which allows them to advertise to the buyers specifically. Consumer Value Store has over 100000 locations nationwide. It is also a high-traffic online platform. They enrich advertisers with detailed consumer information.
Walgreens is another strong retail media network that helps to implement digital ad campaigns for different brands. Amazon is not also left behind in the fold. Amazon has mastered the retail media network and runs it internally.
The retail media network gives Amazon access to over 200 million audiences in the United States alone. But the problem with Amazon advertising is the cost. Sellers have to bid for keywords and pay each time their ads are shown and clicked.
There are many more retail media networks, but narrowing it down to Consumer Value Store, Walgreens, and Amazon.
Is a Retail Media Network changing the face of e-commerce?
Here are the pros and cons of using a retail media network:
- It is a promising avenue for making money. Retailers can create a new stream of income due to the existing market it offers to buyers and shoppers.
- It controls the price of the market and eradicates any form of extortion from sellers. Customers don’t have to deal with annoying adverts.
- It provides first-hand data that could help advertisers to understand consumer purchasing behavior. Also, the data are reliable and can aid personalized marketing.
- It boosts sales because the advertisement is targeted at the group. It also helps to do strategic marketing because all the necessary information has been provided.
As Retail Media Network has several advantages, the disadvantages cannot be overlooked either. Cons of retail media network include:
- It doesn’t give equal chances to all brands. The bigger boys tend to win in the long run. The smaller brands with no traffic are left to compete for buyers with their string budget.
- It is expensive for the smaller brands to run as they are not financially buoyant to acquire the needed infrastructure to run with the more prominent brands.
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