The rise of Retail Media, and what this means for brands in 2023
With the rise of e-commerce and online shopping, retailers have become increasingly interested in leveraging their data and customer relationships to create new revenue streams. This has given rise to the concept of retail media (a term you have no doubt seen increasingly used throughout LinkedIn!), a form of advertising that takes place within an e-commerce platform. In this blog, we'll take a closer look at the rise of retail media and what it means for brands in 2023.
What is Retail Media?
Retail media is a form of advertising that takes place within an e-commerce platform. It involves brands paying for advertising space within an online retailer's website or app, with the aim of reaching potential customers as they browse or search for products. Retail media can take many forms, including sponsored product listings, display ads, and even personalised recommendations based on a customer's browsing history.
The (rapid) Growth of Retail Media
Retail media has grown rapidly over the last few years, with many online retailers seeing it as a way to diversify their revenue streams. According to eMarketer, US retailers spent $17.4 billion on digital advertising in 2021, with retail media accounting for a significant portion of this spend. As more and more consumers turn to online shopping, retailers are seeing the value in leveraging their data to provide targeted advertising opportunities to brands.
What This Means for Brands
For brands, the rise of retail media presents both challenges and opportunities. On the one hand, it can be difficult to stand out in a crowded marketplace, and the cost of advertising within an e-commerce platform can be significant. On the other hand, retail media provides an opportunity for brands to reach consumers at a crucial point in the purchase journey, when they are actively searching for products to buy.
To make the most of retail media in 2023, brands will need to focus on creating compelling, engaging advertising that stands out from the competition. This may involve investing in creative talent and technology that can help to create personalised, targeted advertising campaigns that resonate with consumers.
In addition to creating great advertising, brands will also need to focus on building strong relationships with retailers. By working closely with online retailers, brands can gain access to valuable data and insights that can help to inform their advertising campaigns. This may involve sharing sales data and customer feedback, as well as collaborating on joint marketing initiatives.
Final Thoughts
The rise of retail media is a significant trend that is set to shape the world of advertising in the coming years. For brands, it presents both challenges and opportunities, and those that are able to create compelling, engaging advertising and build strong relationships with retailers will be well positioned to succeed in the years ahead. As the world of e-commerce continues to evolve, it's clear that retail media will play an increasingly important role in the advertising landscape especially for brands to further increase their digital footprint online.
