Are Media Retail Networks Flipping the Script?
For a very long time, vendors have pitched big retail stores, trying to convince them to buy their product and sell it on their shelves. In more recent years, retailers have found themselves in a role reversal, pitching vendors to invest in their
retail media network (RMN) by paying for ad space both in-store and via digital channels. The topic has become a focal point in the industry, garnering a
center stage conversation at Retail’s Big Show,
NRF 2024. While RMNs seem to have taken over the conversation, big brands have been silently investing in them since Amazon launched the first RMN
back in 2012. According to AdWeek,
74% of brands allocated budgets for retail media networks in 2022.
Are Retail Media Networks a Win for Everyone?
For retailers, RMNs serve to draw in more customers with targeted advertising that focuses on brands their customers already know. From a vendor perspective, their product is getting front row exposure to a large audience by reaching consumers in-store, and through off-site media like retail newsletters, shopping apps, and even
Connected TV. The customer experience should also stand to improve, with useful advertising placements that suggest recipes and products for upcoming events, easy dinner solutions, or creative new ways to use their favorite brands. RMNs create a personalized and convenient customer journey, guiding them from their homes, to the store, to the checkout counter. So what is the downside?
What to Watch Out For
If retailers and advertisers are not tactical with placement and messaging, the customer may become overstimulated by ads that are too similar or redundant. This can complicate the customer journey, which is why retailers need to have a well thought out advertising strategy when they are selling their RMN.
When gauging the success of a RMN, it is important to be able to measure the right KPIs. Retailers and advertisers need to make sure they have the ability to measure metrics like return on ad spend (ROAS) and conversion rates (in retail's case, the rate that consumers purchase a product after seeing an ad).
SparkShoppe has a team of retail veterans with proven track records helping stores utilize their RMN, making sure that the right channels are used, the proper audience is reached, and the correct metrics are measured. Want to tap into the power of your RMN?
Contact us today!



