The COVID-19 pandemic has accelerated the use of digital platforms like the internet and mobile services for shopping, entertainment and interaction. The advertising and marketing segment has benefited greatly from this as well since more users across the world have since migrated online not only for entertainment but for shopping, work and education This has further been evident with the opportunities provided via retail media networks which offer better reach and more accurate targeting.
Understanding Retail Media Networks
Retail media networks generally provide new and effective strategies like on-platform placements through tools like sponsored ads or recommendations. This will give customers direct access to the products sold on the platform, making them convenient and more precise. Retail media has traditionally been referred to as in-store ads. This was done mostly in physical stores where ads are strategically placed to entice customers within the premises.
Retail Media Networks and how they are helping
Naturally, retail media networks are now expanded towards digital platforms. Adding networks means it could start from one site through a larger coverage that might include sites from overseas, mobile apps and others. This would also cover the organization’s physical stores. It is when the stores capture the data of customers who visit them (both physical and digital) and then use this data for insights that such media become valuable. Here are some of the top global retail media networks that are changing this industry.
- Amazon – In the United States alone, Amazon has close to 90% of the retail media advertising expenditure. Globally, Amazon Prime has more than 200 million members. Through its Amazon Advertising program, brand owners and organizations benefit through the multi-channel advertising options offered like audio ads (Amazon Music), video advertising, live streaming on its shopping site and affiliation with Twitch, among others. Among the many retail media networks, Amazon is often regarded as among the largest.
- Home Depot – Home Depot has more than 2,200 branches throughout the US with more than 45 million customers. It is by far the largest home improvement supplies retailer in the country. Home Depot operates their Retail Media+ which is their strategy to push their website HomeDepot.com. They reported that their partners have enjoyed returns of more than twice the budget they spent.
- Walmart – Each week, America’s largest retail chain Walmart records about 150 million customers. Among all the players, Walmart comes a close second behind Amazon although it is improving very rapidly. It benefits from its online presence as well as its large network of physical stores. On average, 35% of the customers would research the products on Walmart’s website before buying them at the physical store. This is a huge advantage for advertisers as they are able to coordinate a better and more accurate conversion of purchases.
- eBay – eBay’s more than 100 million unique visitors monthly is one of their main advantages. They adopt their eAAT (eBay Advanced Audience Technology) which is a tested platform that helps to increase visibility and effectiveness for advertisers. In a study, it was found that eAAT had more than 30% of impressions and about 7% more in CTA (Call-To-Action) as compared to a more traditional platform.
