“Retail Media”, the latest buzzword on any marketers’ lips, but what is it?
Retail media is a growing trend in the United Kingdom, driven by the increasing use of online shopping and the need for retailers to find new revenue streams. Retail Media Networks (RMNs) are really just a fancy way of describing retailers’ ability to use their own digital properties to sell advertising to brands, much like a media property would (Forbes).
In essence, the more we use our Tesco Clubcard, the more proprietary data Tesco own about our shopping frequency, behaviour, and baskets. Retail media takes advantage of this information, so that whilst they are putting together their online weekly grocery shop, they can be targeted relevant products whilst in the shopping mindset. By using this data, retailers can offer advertisers a more targeted and personalised advertising experience.
In the UK, some of the largest retailers, such as Tesco, Sainsbury’s, and Asda, have launched their own retail media platforms. These platforms offer brands and advertisers the opportunity to advertise to their customers directly, based on the customer’s shopping habits and preferences. This can lead to higher conversion rates and a more personalised experience for customers.
In 2021, digital retail media advertising spending worldwide was estimated at 77 billion U.S. dollars. The source projected that the value would increase to 143 billion by 2024 (PubMatic, Zenith). Retail media has emerged as a new trend in the UK, providing retailers with a way to monetise their digital assets and advertisers with a way to target customers directly.