How retail media platforms are accelerating the adoption of retail media
Varun | September 12, 2022
There is no doubt that the retail media network is emerging to be the next big thing in digital marketing, and with the pace at which big retail companies are creating their media businesses on the back of robust first-party data, brands will be increasingly forced to take this advertising route. But for brands to get the maximum benefits from every dollar spent on the retail media network, they have to be clear about their goals and then identify the most suitable retail partner that ticks the most boxes.
But not all retailers have access to loads of quality first-party customer data like Amazon or Walmart. To create a successful retail media business, marketplaces should have a profound understanding of their consumers and should be able to use the available data to generate higher sales for their partners. They should also have scalable first-party data that can benefit their partners in the long run and provide value for every dollar spent on retail media.
That means retailers must drive more consumer traffic to their websites to build a sustainable revenue model. A research report from Forrester said that retailers in the United States with more than 50 million monthly visitors on their websites would launch their own retail media networks to tap on the massive opportunity this channel brings in the changing marketing landscape.
Many retailers are still trying to build their first-party data, which can aid them in predicting their customers’ shopping behavior, leading to higher ROI for the advertisers for which they will pay.
Role of retail media platforms
Many retailers looking to build their retail media network would be tempted to start the process in-house. But this is a complex process and requires a lot of additional investments, which can prove to be a detrimental factor for the retailers. As a result, many experts believe that third-party platforms that enable retailers to start their own networks give them better flexibility in setting up the process.
While the retailer can focus on its core competency, providing top-notch customer service to its customers, third-party providers can help the marketplaces efficiently monetize their e-commerce website, app, and first-party data. One such platform is ArabyAds’ retail media platform Ritelo. Ritelo assists retailers and marketplaces in the MENA region by offering technology to build a custom retail marketing platform to help them create a scalable brand-funded media business.
Let us look at how third-party retail media platforms assist retailers with their retail media network requirements.
Firstly, retail media platforms can effectively help brands buy advertisement inventory from retail media networks through self-serve or managed service arrangements, increasing efficiency for both retailers and advertisers. The vendors thus create an opportunity to accelerate the adoption of retail media networks.
And secondly, third-party vendors allow retailers who cannot establish the entire network on their own to build retail media networks through their technical expertise, enabling the retailers to monetize their first-party data and real estate on the website and mobile application.
Some big retailers and marketplaces have built their retail media networks from scratch with their internal resources, like Amazon; other giant retailers are still collaborating with one or multiple vendors to look at or manage some or the other part of their networks to make it work seamlessly. For retailers with limited resources, the best option is to partner with retail media platforms that can do the heavy lifting and put a retail media process in place. Ritelo, from ArabyAds, can help retailers to go live with their retail media networks in just four weeks in a brand-safe environment.