RMNS offers a traditional media alternative. While TV and mainstream digital platforms used to dominate awareness and conversion campaigns, it is no longer so. With online habits that move and the rise of channels such as social media shopping, customers no longer follow a traditional path. People seek online, buy in the store and move between platforms constantly: a model known as the “ropo” effect (online search, offline purchase).
The modification has opened the doors to retailers to offer advertising space on their websites or apps, in shops and partner platforms. What makes this particularly precious is access to first part high quality data dealers through loyalty programs, which many advertisers want. As a result, the brands are spending more on RMN to reach the public in a more precise way.
On a global level, the retail media market should reach $ 179.5 billion by the end of 2025 Amazon leads the market at a certain distance, bringing revenues for about 60 billion dollars of average retail in 2024, with Walmart following about $ 4 billion in revenue. The gap shows both the scope of Amazon’s domain and the room for other players to grow.
With the margins in the sale of traditional retail often rather thin, MRIs are attractive since their margins of advertising revenues can exceed 70%. Techradar Notes that over 200 RMN have been launched in recent years while retailers try to draw on advertising revenues on the highest margin.
What does an average retail network work
Most of the MRI expenses by brands are still focused on background-flunnel-like lists of sponsored products or visualization ads on the websites and on the retailers apps. But there is a wider opportunity to become full rhythm platforms by supporting the awareness of the brand and the campaigns of online consideration and in physical stores.
Many retailers are starting to expand on new channels. They are adding screens in the shop, inserting ads on connected TV (CTV) and collaborating with platforms such as Tiktok and Google. For example, Walmart collaborated with Tiktok and Tesco collaborated with ITVX to offer integrated advertising services. The moves help the MRIs to cover more than the customer’s path – from discovery to purchase.
To make the most of this model, retailers need the right structure and tools. This includes:
- A clear operating model with well -aligned retail and media sales teams
- Strong first part data that can segment the public effectively
- A mix of ads formats in digital and physical channels
- Tools to measure results in the channels, using automatic learning whenever possible
- Clean data rooms to combine internal data with partner data safely
- Self-service tools and managed services to plan and manage campaigns
- A test platform to perform A/B experiments
- Real -time performance metrics, including Roas, Iroas, Sales and Impact of the brand
- Standardized ways to define and measure success
In physical stores, it is important to be able to trace advertising services. Metrics such as the impressions shown or viewing time can be combined with sales data to help brands understand if their campaigns work.
If well performed, the MRIs offer brands a clearer vision of the behavior of buyers in several points of contact, helping targeting and personalization and improvement of the performance of the campaign.
Challenges that still have to solve
Despite the opportunity, many retailers have difficulty transforming their MRI into revenue costs. A common problem is that retailers operate with a buyer’s mentality, while the management of a media activity requires an approach to a seller. Team may not have the experience or tools to manage ads sales and campaigns effectively.
Other gaps include low data quality, limited ads formats and the absence of self-service tools for advertisers. The brands can also feel excluded from the planning process, especially when there is no joint corporate planning between dealer and advertiser. And without clear measurement tools, it becomes difficult to show the true Roi.
In addition, the competition is intense. Many retailers are entering space, but only some will be able to transform their networks into real advertising activities.
Think like an agency
In order for MRI to compete with giants such as Amazon, Google or Meta, they will have to show that they can provide results. This means acting more as average agencies, offering a guide, sharing performance data and using tools such as automatic learning to help the brands understand what works.
Dealers should also consider MRI profits as fueled by advertising spending rather than product sales. Those who can move on to this mentality will be better positioned to win more brands budget.
(Photo of H & co.)
See also: the errors of Martech cost their customers to the brands
Find out more on Forum of the world of digital marketing series and registered Here.