What is Retail Media Advertising?Retail media advertising is advertising designed websites, checkout screens, search results, and other online media assets that are owned and managed by retail media companies. Think of products that are pushed to consumers via recommended search results on Amazon. This is a key example of retail media advertising.
What is Personalization in Retail Advertising?When advertisers refer to personalization, they are referring to the act of creating ads that are specifically targeted to unique buyers. These buyers can be individuals shopping for themselves or fellow businesses with whom the advertiser hopes to establish a relationship.
- Targeted: Personalized ads are intentionally produced for unique buyers from the outset.
- Data Driven: Who to target, and when, is a key problem that is solved with quality data and high-level analytics.
- Relevant: Ads are produced for every step of the customer journey to ensure potential sales can be nurtured regardless of their readiness to purchase.
- Contextual: Advertisers know that customers are more open to advertising when they’re already shopping, and design advertisements and platforms around this.
Personalization Is Not
- One-size-fits-all: Copy & pasting customers’ names on a mass email is technically personalization, but it falls below the standards customers expect.
- Overbearing: Great personalization can even be off-putting in the wrong context. Customers want to feel as though you’re anticipating their needs without being obtrusive.
Why Personalization Is More Important Than Ever BeforePersonalizing advertisements is the best way to compete with the growing number of problems facing brands in 2022.
Inflation Is Restricting Consumer SpendingInflation is rapidly becoming a major problem that some experts believe could lead to a recession soon. An NCS Consumer Sentiment Survey from June 2022 revealed some eye-popping stats when it comes to online grocery shoppers:
- 76% are changing the way they buy groceries
- 71% are straining their savings
- 43% are actively searching for sales and promotions for their favorite brands
Growing Private Label CompetitionA recent eMarketer report found that private-label grocery brands were exceeding 20% market penetration in some online grocery buying categories like home, meat, and deli. Even in a great economy, these private labels enjoy a distinct advantage thanks to their relation to the retailer. Their products, which are often cheaper, can be advertised directly alongside their brand competitors. Grocery retailers also have first-hand access to prices and demand information which allows them to design sales and promotions around these products that non-retailer brands traditionally have been unable to compete with. Non-private label brands have to adjust to this increasing private label competition with better, more personalized retail media advertising, sales, and promotions.
Rising Consumer ExpectationsCustomers have grown used to the feeling of companies keeping track of their information. Why is this the case? To put it simply, technology has evolved, and this level of personalization is easier to achieve than ever before. Customers don’t need to take time to look around and find multiple competing brands when there are already several who have access to their information and have designed personalized, relevant, and contextual advertising for them. Customers enjoy this deep personalization because it adds value to their lives. On the contrary, shoppers definitively dislike feeling like just another customer. Receiving mass emails with no relevant information or context is not only not valuable, but it can also feel obtrusive and annoying compared to the organic feel of personalized advertisements.
How to Personalize Retail Media Advertising for Retail Media Networks in 2022Cookies are dead. The best way to generate high-quality consumer data after this loss is through voluntary programs that consumers sign up for. The entities best positioned to achieve this are retailers. Specifically, retailers with strong online presences that facilitate rewards programs and require customers to provide certain information. In essence, customers pay for rewards with their information. Brands should use this information to produce contextually relevant and efficiently targeted advertising. Here are four ways to personalize retail media advertising for retail media networks.
- Who are your most valuable customers?
- What products do they buy most?
- How can you speak to these customers?
Focus on All Channels
Try to Generate Engagement
Get Comfortable with Retail Media Networks
How Retail Media Networks are Making Personalization More EffectiveYour digital customer experience strategy should make use of retail media networks. The most important reason is the access to segmented, first-party consumer data that RMNs provide. The second most important reason is the personalized and relevant retail media advertising that brands can create using this data.
A Better and More Secure Customer ExperienceMore and better-secured data is a win-win-win for customers, retailers, and brands alike. RMN data is sourced from willing first-party contributors and segmented, secured, and disseminated by the retailer. This means the data never changes hands without first being verified, anonymized, and secured first. This not only improves security but ensures that brands have access to higher-quality information, it makes it easier to design advertising and even inform the direction of product development.
Offline Sales Attribution Is KeyKeeping track of sales data is the best way to design advertising. Knowing what customers desire, when, and whether they can afford it at full price, are all extremely insightful data points for brands to work with. In the past, this data simply wasn’t as available as it is today. The rise of retail media networks is to thank for this. Offline sales attribution can lead to a ten to twentyfold increase in sales attribution (eMarketer). Even if you assume that online advertising only plays a modest role in lifting in-store sales, a massive increase in the ability to attribute sales means brands can design more efficient ads. In short, even if you aren’t a fan of the digital shelves or other media products that RMN provides access to, the first-party consumer data from brands as large as Amazon, Walmart, and Instacart can be game changers when it comes to designing ads.
Shoppers Browse Online Assets Even While In-StoreContext is king. Consider a few points:
- Customers are more open to seeing advertising when it’s contextual and relevant. They are also likely to trust brands and retailers once they’ve had a positive buying experience with them.
- Consumers use their phones while shopping in-store to find sales and other information about products before they buy.
An Agency Like E29 Can Expertly Manage RMNs and Their DataCustomers don’t just shop online or offline anymore. Rather it’s usually some combination of online shopping and research combined with in-store browsing that leads to purchases. Brands need to be able to read and accurately interpret the huge amount of data available from online shopping, then they need to have the creativity and expertise to design effective retail media advertising campaigns. The stress is managing potentially dozens of distinct RMNs with unique customer bases, products, and media formats may be enough for small or medium-sized brands to pause. If you’re concerned that the time and resources required to adequately manage RMN advertising are too much for your advertising operations, hiring an agency that focuses on digital customer experience services could be right for you.
- An agency like ours has many experienced and dedicated professionals who are already familiar with RMNs and how to interact with them.
- E29 can design personalized and targeted ad campaigns by using sophisticated data analysis.
- E29 was founded on the principles that are making RMNs so popular today: personalization, data analysis, and creative ad targeting.