What is retail media and what opportunities are available for advertisers?

Retail media plays an important in advertising not only within Malaysia but in every market around the world today. It refers to media that are used for advertising in places where retail stores and outlets operate. This could include the likes of hypermarkets where ads are placed on objects like shopping trolley as well as on the aisles, travelators and elevators.

Retail media has a direct influence on branding and most prominently in the purchasing behaviour where it is very important to ensure that there is substantial reach with the customers. Brands like Coca-Cola and Nescafe use retail media as it is where the customers usually make their purchase and when a campaign is effective, it could lead to more purchases in the last minute before payment is made.

Malaysians love to shop

According to the MRA (Malaysian Retail Association), Malaysian retailers sold some RM8.32billion worth of items in 2011 where this figure is expected to grow steadily each year. With the general sentiments that Malaysians love shopping, it would then be important the advertisers and marketers leverage on this scenario to further drive sales for their specific brand of products and services.

Shopping malls mushrooming

One of the main reasons why Malaysians love to shop and the growing scenario of more retail billings is that there are more shopping malls in Malaysia now. In recent years, there has been a growing trend of community-based malls like SSTWO Mall, Paradigm Mall and the KL Festival City which are all targeted to consumers of a specific residential area. This complements the current landscape of large malls like MidValley and 1Utama.

Heightened expenditure

Naturally, the biggest driving factor for increased spending on retail is the standard of living. Where more Malaysians are living in urban cities and towns with more malls opening, offering many more retail outlets and brands, it is only common that more expenditure is involved. Furthermore, credit cards are being issued although there are restrictions from the regulators. With a major portion of the Malaysian population being the Generation Y, the major demographic of organized retail spending comes from the young working people as well as working women and people who are living in urban areas.

Media formats in retail advertising

There are several major types of media formats involved in retail advertising which is used to attract the target markets. They include aisle sponsorship which is among the most popular. Freezer wraps are commonly used while trolley advertisements are almost mandatory and seen in most hypermarkets and supermarkets.

Other media used in retail media include floorstoppers, payment gateway billboards, mall zone which are used mainly on table-tops, wall-spaces, travelator panels where ads are placed along the entire stretch of the travelators as seen in the likes of Tesco and Jusco as well as ads that are being placed on carpark along the walls and light-boxes.

Such ads are very important to the advertisers because they represent the final contact point for the consumers who might have forgotten to buy something while certain ads would drive them to turn back and actually make a purchase of the particular brand and such.

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