Retail Media Strategies for Increasing Revenue and ROI
As product manufacturers and CPG brands seek to accelerate sales for their in-store products, they have more options than ever before. One of the most trackable, and highest ROI offerings, however, is Retail Media. In this introductory piece, we address the basics and start to cover a strategy to help gain traction.
What is Retail Media?
Retail media marketing, also sometimes referred to as Shopper Marketing, strategically advertises products on retailer websites where people are already shopping online. Retail media is similar to hanging a sign in a supermarket or a banner ad on an eCommerce site.
Shopper marketing catches users' attention when they're ready to buy. Ben Wax, a paid search and retail media expert at Eyeful Media, offers this comparison.
"Retail media is a way of advertising to users on a website who are looking to make a purchase," Wax said. "It's like in-store advertising, but in a digital format.”
“Picture someone shopping at Walmart and seeing items on sale at the end of aisles or with sale tags on shelves. Retail media is this in-store experience but translated to the online space."
Retail Media Platforms
Retail media strategies target users already in a marketplace or on a retail media platform. Examples of marketplaces include Amazon, Instacart, Target, and Walmart, along with others like Wayfair.
Ad solutions include programs such as:
Amazon Sponsored Products & Sponsored Brands
For example, shoppers are presented with banner ads and sponsored products when browsing on Amazon. These placements are not random. They are intentionally chosen to match the shopper's interests and needs.
At Eyeful Media, we are constantly testing the impact of each retail media platform on our clients.
"We test and track how well different retail media platforms perform for our clients and the products they sell," Wax explained.
"If a product performs better on one platform than another, we will adjust our spending to account for that. Understanding platform performance helps us optimize our advertising spend.”
“This flexibility allows us to drive more revenue from the platforms that are working the best for our clients. Retail media campaigns that are the most successful are flexible.
“Brands have to adjust their strategies in real-time. This ensures their products are always visible and engaging customers at the right point of the buyer's journey."
Retail Media and Seasonality
Seasonality plays a pivotal role in shaping retail media strategies. During the summer, for example, people are having barbecues outside. We recommend a grocery client only promote items that align with that summer season.
"We are always adjusting the products we are promoting based on seasonality and current trends, both across channels like search but also in our retail media campaigns," Wax said.
"One of our clients is in the grocery business. So, over the summer, we focused on more seasonal products.’
“To maximize our return, we will update the product mix we promote on platforms like Instacart and others based on those seasonal trends. This helps us meet users with the products they want to buy at the right time.”
How to Implement a Retail Media Campaign
To run a successful retail media campaign, you need to think strategically and be adaptable. An understanding of how people shop on different platforms is also fundamental. To help you get started, we've highlighted five steps for building a successful retail media campaign below.
Retail Marketing Strategies for Success
Identify the Right Platforms: Understand each retail media platform's unique structures and opportunities. What product are you trying to sell? Which platform would be most relevant for that product? Answer these questions first.
Adapt to the Platform: Tailor strategies to fit the specific nuances of each platform. It is essential to explore platform-specific ad opportunities. The goal is to optimize for each environment and effectively reach consumers.
Leverage Seasonality: Tune into the rhythms of consumer behavior. Adjust advertising spending to account for seasonal trends. Make sure you are promoting products that consumers want at that specific time.
Monitor Data and Adjust Strategies: Keep a close eye on performance data. Be prepared to change strategies quickly based on which products are selling well. Understand what the data is saying and make strategic decisions based on that data to drive more revenue.
Highlight Buying Opportunities: Make products stand out at essential moments of the buyer's journey to drive more revenue. Consider the store aisle analogy. Promote products people want when they want to buy them.
Contact Eyeful Media for a free consultation to discuss how retail media strategies can improve marketing ROI.
In addition to advertising on retail media networks, we can also help with other related offerings such as Google local inventory ads, Google local affiliates, and additional platforms to bring in-store and online shoppers to your products.