Updated: Jan 10
Recently, our founder Pierre Le Grange was interviewed by Marklives.com about the rise of retail media networks. We've extracted some nuggets of wisdom from that article to share with you below. To read the full interview click on this link: Full Mark Lives Article
1. They generate and own shopper data
In general, retail media networks are being pioneered by FMCG and online-focused retailers that have strategic partnerships with various third-party retail media companies. I would say the retailers' strategy is to own the value of shopper data generated and use the media channels as a tool to meet strategic objectives. However, there is undeniable value to be had by the brands through engaging in these channels when it aligns with their commercial and customer objectives.
2. They benefit shopper targeting strategies
E-commerce and digital media channels owned by retailers offer a wealth of data that can enable better delivery against defined shopper targeting strategies. The growth of retailers like Takealot and the evolution of their media model to include a big focus on data has also made a significant impact on the way channels are leveraged.
3. They are not a suitable platform for brand building
If you are looking to use it to build your brand (depending on category), your investments would have a more significant impact on other platforms. The opportunity for consumer engagement and brand building is richer under your complete control, as a brand owner, outside the retailer's network. Brand-owned digital and traditional media platforms offer you more time and space to build your brand’s narrative and foster that emotional connection with your audience. Working in tandem with a shopper messaging strategy, the retail media space reinforces that existing brand narrative with the purpose of driving conversion at the moment of purchase consideration and action.
4. They’re expanding into new territory
US companies are leading the charge by innovating in unexpected ways to reach new customers and personalise the shopping experience. Sports apparel store, Dick’s Sporting Goods has branched out of the retail space and made a bold move to acquire a baseball scorekeeping app which they offer to users for free. The nature of the platform perfectly curates a sports-enthused audience from which they can gather data for more personalised and purposeful advertising.
5. They are here to stay
The likes of Shoprite Group and Pick n Pay are among the top. These retailers are strategically aligned with ZaPOP and PRIMEDIA, respectively, with retail divisions built on established models that include Rainmaker and PnP Connect. There are several other networks specific to other retailers, as this is a growing space and in time more consolidation and innovation will ensure others rise to the top. This rise will be based not necessarily on the scale but rather on the way data is used to move the needle on performance.
For a more in-depth understanding of Retail Media Networks, read the Marklives.com interview here.
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