Retail media is becoming an increasingly important strategy for effectively connecting brands, stores, and consumers. Its key advantage lies in the ability to customize the buying journey with improved segmentation and result measurement.
In this article, we explore the main benefits of retail media for three strategic audiences: brands, merchants, and marketing agencies.
For brands
Retail media offers brands a way to reach consumers with more precision, track the entire purchase journey, and connect ad spend to specific results.
Measurement
Unlike traditional media, which faces metrics and attribution challenges, retail media allows tracking the impact of a campaign with precision at each stage of the consumer journey.
By identifying the moment customers engage with the ad and connecting it to their buying behavior, brands can effectively measure the Return On Ad Spend (ROAS) and make instant adjustments to improve results.
Full funnel
A primary advantage of retail media is the ability to track the customer journey from awareness to conversion.
This allows brands to engage consumers at different stages of their journey, creating a custom and efficient experience. By combining segmentation, metrics, and continuous monitoring, retail media becomes a powerful tool to achieve better and more predictable results.
For merchants
Retail media allows stores to diversify revenue streams by selling advertising spaces. This additional revenue can help offset operational costs and improve business profitability.
Furthermore, this model facilitates omnichannel strategies, providing visibility into a unified journey and generating value for the entire chain up to the end user.
Monetization
One of the key advantages for stores in retail media is the opportunity to diversify their revenue sources. By selling advertising spaces to brands, they can generate additional revenue, helping offset operational costs.
Additionally, retail media facilitates the implementation of omnichannel strategies, helping stores better understand the customer journey and create a more integrated and efficient experience.
The retail media model offers significant monetization opportunities, with brands increasingly willing to shift advertising budgets from traditional media to retail media channels, as shown by studies from McKinsey (2022) and Financial Times (2022). This reflects the potential to increase profitability and improve store margins.
For marketing agencies
Retail media positions itself as an essential tool for agencies, enabling them to develop more effective campaigns with proven results. By integrating retail media into their strategies, agencies can offer more assertive campaigns with increased agility and demonstrate the added value to their clients throughout their buying journey.
Segmentation
Unlike traditional channels agencies operate in, such as television and social media, retail media offers more precise segmentation based on behavioral buying data.
This enables agencies to create more customized and targeted campaigns, reaching consumers at the exact moment they are most likely to purchase. This segmentation capability is a distinct advantage compared to other channels, where segmentation options tend to be broader and less specific.
Measurement
One of the biggest challenges for agencies is proving the return on advertising investments. With retail media, stores can obtain clear insights into the impact of each campaign and adjust strategies in real time. This is crucial for agencies that need to provide their clients with measurable results and visibility on campaign performance.
Retail media also removes the uncertainty in traditional channels like TV or radio, where it's difficult to accurately measure ad impact on sales conversion.