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What Is Retail Media and How Can It Drive Revenues In Store?

This shopper marketing & promotion guide is a special retail media report that looks at the rise of retailer owned media networks. It provides perspectives and implications for brands, advertisers and retailers looking to leverage this rapidly evolving marketing channel and create competitive advantage. The report also provides ideas around how to utilize these networks to deliver enhanced consumer experiences, influence spending habits.

Executive Summary

Advertising and shopping have both seen a huge shift towards digital domination, and the pandemic only served to accelerate that. Yet only recently did the two disciplines begin to merge in very interesting ways.

As of 2021, Amazon had invested over $31 billion in its own display ads business (Amazon Marketing Cloud), beginning a trend in retail media advertising that is only in its infancy. Conversely, Apple has updated its ad policy to be an opt-in feature, greatly impacting retailers ad revenue. In response, rather than work in tandem with media agencies as a key ad buyer, retailers have begun to establish their own retail media platforms.

With access to a swath of proprietary, first-party data and the marketing world moving away from precise targeting via third party cookies, it seems like the perfect storm for a major retailer to build its own retail media network and create competitive advantage. Not only would that retailer have more control over content with the retail media program, but it would also glean far more insights about whether or not their marketing budget has been successfully employed.

As a result, retailers and consumer goods companies are starting to get very creative about ways in which to leverage retail media solutions to reach their customers in store and via their websites.

Report Overview

Within this report, PSFK iQ researchers detail the strategies powering the emerging retail media opportunity, as leaders explore new big data funnels, leverage store-based interactions, adopt the role of ad agency and ultimately create their own retailer media networks that drive incremental revenue.

What You Will Learn From This Report

  • How retailers in a tumultuous economy are leveraging big data to understand and reward their customers spending habits at scale
  • Why retailers are extending their services and categories, feeding additional data streams into the retail media networks
  • How brands are acting as retail media agencies, running retail media programs to connect retail partners with targeted consumer insights, performance marketing and personalized advertising
  • Readers will understand what is a retail media network and the opportunity for retailers to use their brick-and-mortar stores are becoming media centers in their own right
  • How connected stores are using localized personalization for audience targeting
  • How retail media efforts provide an additional revenue stream as retailers influence spending habits and offline sales
  • The use of digital displays, connected devices, the digital shelf and other technology solutions

Who Prepared This Report

This marketplace strategy research paper has been developed by the same researchers and analysts who help the world’s leading companies (inc. Nike, Google & Samsung) understand and activate trends. They help companies that include Nike, Google & Samsung with their sector-leading market research platform and bespoke trends research and innovation consulting.