Online advertising is dying. Here’s what you should do next

With the decline of third-party cookies and increasing concerns over data privacy, brands are looking for new ways to reach their audiences effectively and securely.

Retail media networks may provide the solution with over $119 billion in advertising budgets being spent on this emerging channel.

But What are Retail Media Networks Anyway? 

Retail media networks are advertising platforms owned and operated by retailers that allow brands to advertise directly to customers through the retailer's digital and physical properties.

When shopping online at major retailers like Amazon, you may notice ads labeled as “Sponsored” or “Featured.” These are examples of retail media ads, where brands pay to have their products prominently displayed on the retailer’s website.

But retail media networks aren’t limited to online spaces; they also extend to physical stores. In-store advertising can include digital displays, audio announcements, and even interactive kiosks that feature targeted ads based on the shopper's location within the store.

Why Should Brands Pay Attention to Retail Media Networks?

1. Shift to First-Party Data

   With the decline of third-party cookies and increasing data privacy regulations, brands are looking for new ways to reach customers. Retailers have a wealth of first-party data that is crucial for delivering personalized advertising experiences.

   Retail media networks provide brands with access to this data, allowing them to reach consumers with ads that are more likely to resonate
   

2. Targeted Advertising

   Unlike traditional advertising channels, retail media networks enable brands to target consumers at different stages of their buying journey. From awareness to purchase and beyond, RMNs offer opportunities to engage with consumers when they are most receptive.

   This is especially effective in driving in-store traffic and increasing conversion rates, as ads can be tailored to the shopper’s immediate needs and preferences
   

3. Closed-Loop Attribution

   One of the significant advantages of RMNs is the ability to directly link ad impressions to sales. This "closed-loop" measurement allows brands to see the tangible impact of their ads on sales, making it easier to justify ad spend and optimize future campaigns.

How Can In-Store Radio Be Used to Get Started with Retail Media Networks?

In-store radio can be a powerful tool for brands looking to tap into the potential of retail media networks without a heavy digital footprint. Here's how:

• Enhancing the In-Store Experience: In-store radio provides an immediate way to reach consumers at the point of purchase. By using in-store audio ads, brands can capture shoppers' attention with relevant promotions, announcements, and branded content. This can drive impulse purchases and enhance the overall shopping experience

  
  

• Leveraging First-Party Data: Retailers can use the same first-party data that powers their online ads to inform in-store radio content. By understanding what products are most likely to appeal to specific demographics, retailers can craft audio messages that resonate with customers, increasing the effectiveness of in-store marketing.
  

• Creating a Seamless Omnichannel Experience: By integrating in-store radio with online retail media strategies, brands can create a seamless omnichannel experience. This approach allows for consistent messaging across all customer touchpoints, whether a shopper is browsing online or walking through a store aisle. It also ensures that customers receive a unified brand experience, increasing brand loyalty and repeat purchases.
  

Conclusion

Retail media networks represent a significant shift in how brands connect with consumers, offering unprecedented opportunities for targeted, data-driven advertising.

By leveraging in-store radio, brands can easily transition into this new advertising landscape, enhancing both the online and offline shopping experience.

As the retail media network ecosystem continues to grow, now is the time for brands to explore how these networks can be integrated into their broader marketing strategy to drive sales and build stronger connections with their customers.

Sources: Nielsen, Digilant, SellerApp, Content Marketing Institute and Hightouch.