Revamp Your eCommerce with Retail Media!
Miguel Nicolás
28/09/2023
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What is retail media? You might be wondering. In this article, we will show you a new way of making money with your online store.
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We're not talking about something entirely new, but you might not be familiar with it. It can be an additional way to monetize your online store. That's what makes it worth taking a moment to delve into Retail Media and at least consider it seriously.
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What is Retail Media?
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There's a lot to talk about, so let's get specific. Essentially, it involves using our resources and assets for advertising purposes on behalf of third parties in exchange for financial compensation.What do I mean by "resources and assets"? Simply the channels and spaces we control as a business, as well as the databases we have built over our history.In other words, we can charge other brands to advertise on our website, app, newsletter, or even within our physical store.Additionally, we can use our database to tailor communication specifically, considering different criteria like demographic data, purchase history, customer lifecycle, or average spending.We essentially become an advertising medium and can use it to promote third-party campaigns or, why not, to give more visibility to our campaigns.
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Where are Retail Media ads placed, and what do they look like?
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The truth is, there's not a big difference between the use of Retail Media and advertising platforms like Google Ads or programmatic advertising.The location is our store, and we decide on which pages or at what moments in the shopping experience we place ads or banners.Typically, Retail Media placements are on high-traffic pages and those closest to product search and purchase. For example:
- Home page: As a rule, the home page usually attracts the most traffic and showcases everything in our store. It's one of the most sought-after spaces by advertisers.
- Category and sub-category pages: These more specific pages take us closer to the consideration and comparison stage of shopping. These moments are ideal for branding, introducing new products, and promoting offers.
- Product pages: Featuring a campaign on product pages can be highly effective. Furthermore, keep in mind that these URLs get indexed, impacting SEO.
- Checkout: We could also include promotions or ads directly in the checkout process, but it's not highly recommended as it might distract users and lead to drop-offs. Cross-selling that complements items in the cart would be an appropriate use case.
- Internal search: Very useful for Retail Media since it uses keywords to position products, guiding advertising towards relevant results.
All of this can be more or less sophisticated, depending on its importance in our strategy, the tools we have, and the software used to create our online store. -
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Amazon: the prime example of Retail Media
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I could provide many examples of how Retail Media works, but Amazon is among the most prominent and paradigmatic.Everything discussed in the previous section is something any Amazon marketplace user is familiar with because it's precisely what's achieved through Amazon ADS' PPC platform.It's true that most Retail Media-created ads are seen in the search bar, but they are present in many other sections and page types within the platform.
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Amazon collaborates with several partners that use its platform for advertising. This can add complexity to the strategy, allowing, for instance, the combination of retargeting with Retail Media.
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Benefits of Retail Media
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It's a synergistic strategy where all parties benefit (if well-implemented).The most significant benefits of Retail Media are:
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#1 - Greater Visibility
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One of the main features of Retail Media is its ability to impact various shopping process stages with targeted ads, thus enhancing any product's visibility and its effect on end users.
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#2 - Personalization
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Segmented ads, strategically placed, have the potential to optimize navigation and build an entirely personalized context for the user, enhancing their store perception and shopping experience.
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#3 - Discovery
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Introducing new products, showcasing clearance items, or last-minute deals are just three use-case examples where you can help customers discover purchasing opportunities.
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#4 - Additional Revenue Source
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Posting third-party ads in your store is an added benefit, a way to capitalize on the effort you've put into positioning and enhancing your business's visibility.For advertisers, it represents an opportunity to engage a "hot" audience with a clear buying intent.
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What do you think of Retail Media? Were you already familiar with this strategy? Would you be interested in implementing it?
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Images | Unsplash