The Rise of Retail Media Networks: A Goldmine for Targeted Advertising

The advertising landscape has changed a great deal. More people are shopping online at places like Amazon and Walmart, skipping the usual stores. This means that retailers need to up their game to retain current customers and bring in new ones. That's where Retail Media Networks (RMNs) come in.

With fewer third-party cookies, first-party data is now imperative for media companies, especially retailers. But many haven't used it to its full capabilities. First-party data can boost key business numbers and open new ways to make money through data-driven supplier deals, which can be very profitable. Retailers can use first-party data with Retail Media Networks to create very targeted ads.

The Booming Retail Media Network Landscape

RMNs are advertising platforms operated by major retailers. Brands can place targeted ads directly on their website, mobile app, email receipts, or in-store displays. They can also find users off-site on Demand-Side Platforms (DSPs) and social media. This provides a unique opportunity to reach consumers at the crucial decision-making point when they are actively considering purchases.

The growth of RMNs has been meteoric. According to a recent study by eMarketer, US retail media network ad spending is expected to reach a staggering $105.4 billion by 2025, representing a massive 32.8% increase from 2023. This explosive growth highlights the immense potential RMNs hold for advertisers seeking highly targeted and effective campaigns.

Retail Media Networks: A Thriving Ecosystem and Look Ahead

Retail media networks (RMNs) are reshaping the advertising world. They give retailers a way to make money from their customer data and let brands connect with shoppers at a key moment – when they're considering buying.

Benefits for Retailers and Brands

• Monetization: RMNs let retailers earn extra income by selling ad space on their websites and apps.
• Better Customer Experience: Ads tailored to individual shoppers can make their experience better and boost sales.
• Data Insights: Retailers learn more about their customers through ad campaigns, helping them target better.
• High-Intent Audiences: Retailers can focus on shoppers looking for specific products, making a sale more likely.
• Improved Measurement: RMNs offer more accurate ways to measure ad success compared to traditional ads.

Big names like Amazon, Walmart, Kroger, and Target have strong RMNs. These platforms offer different ad types, like display ads, sponsored products, and native ads that fit naturally into the shopping experience.

Future Outlook

The future of RMNs looks promising, driven by several trends:

1. Tech Improvements: AI and ML will help with better targeting and personalized ads.
2. Omnichannel Integration: RMNs are expected to go beyond online, linking with in-store displays and loyalty programs for a seamless ad experience.
3. Independent RMNs: Smaller, specialized RMNs are expected to grow, offering unique solutions for smaller retailers.

Challenges and Considerations

While RMNs offer great opportunities, there are challenges to address. One big issue is data interoperability. To create a smooth customer journey, retailers must integrate data from different platforms, which is still difficult without the proper technology. And it might be difficult to understand customer interactions across various touchpoints.

Additionally, measuring the success of RMN campaigns in a omnichannel environment is tough. Accurate attribution, which credits specific touchpoints in a customer's journey, requires advanced models. Brands can't be sure which parts of their RMN strategy work without these.

The growing retail media space offers big opportunities for brands and retailers. However, focusing on data privacy means that retailers must be careful how they collect and use customer data. If they misuse data, it could lead to big fines and damage to reputation. Following privacy regulations and best practices is key to making the most of retail media without losing consumer trust or brand integrity.

Lastly, the lack of standardization across RMNs adds another challenge. Different pricing models and measurement metrics make it hard for brands to compare options and optimize their campaigns. This inconsistency can be a barrier for some and slow down the growth of the RMN ecosystem.

Why are RMNs So Effective?

Retail media networks (RMNs) combine several factors that make them highly effective.

RMNs have a treasure trove of first-party data. This data tells them what customers buy, how they browse, and their demographics. This allows for very targeted campaigns, ensuring advertisers reach the right people with the right message.

Moreover, shoppers on retail platforms are already looking to buy. They are more amenable to relevant ads than those who see ads on the open web, where browsing is often more casual. Additionally, RMNs give advertisers detailed metrics on campaign performance, tracking conversions, measuring ROI, and enabling real-time adjustments. This mix of precise targeting, ready-to-buy audiences, and measurable outcomes makes RMNs a powerful tool for brands.

Unleashing the Power of RMNs with Boostr's OMS

While the potential of RMNs is undeniable, navigating this complex and fragmented landscape can be challenging for advertisers. This is where Boostr's Order Management System (OMS) comes in. Here's how Boostr empowers retailers to tap into the full potential of RMNs:

• Unified platform: Your RMN requires multiple platforms.  Boostr’s robust OMS platform will help you aggregate your tech stack in one IO, simplifying operations.
• Streamlined workflow: Boostr automates manual tasks such as proposal generation, order management, and reporting, freeing up valuable time for retailers to focus on strategy and optimization.
• Data-driven targeting: Boostr pulls current data from ad servers or DSPs, allowing retailers to leverage rich customer insights to create highly targeted campaigns across the RMN.
• Accurate pipeline forecasting: Boostr's advanced forecasting capabilities help retailers predict sales performance and optimize budgets for maximum ROI.
• Performance insights: Detailed daily reporting allows retailers to track key metrics like impressions, clicks, and sales across all RMN platforms, providing valuable insights for optimizing campaigns on the fly.

Boostr's OMS: A Suite of Solutions for Every Advertising Need

Beyond its core functionalities, Boostr offers a comprehensive suite of tools specifically designed to address the unique challenges of RMNs:

• Full integrations with your operational tech stack: Boostr seamlessly integrates with your end-to-end integrations, allowing a unified view of customer data and a more personalized customer experience.
• Proposal recommendation engine: Boostr's intelligent engine analyzes historical data and market trends to recommend optimal pricing and campaign packages for RMNs.
• Inventory management: Boostr streamlines inventory management across the RMN, ensuring efficient allocation and utilization of advertising budgets.
• Accelerated deal flow with Prisma: eIO capabilities save you 12 or more hours per I/O with automated RFP and IO receipt and response processes, streamlined 1P and 3P reporting, and 50% reduced billing time.

Conclusion

The rise of RMNs presents a golden opportunity for retailers to reach target audiences with pinpoint precision. Boostr's robust OMS empowers retailers to consolidate sales and ad operations, unlocking actionable data for scaling your retail media network. 

Evolving RMNs Demand Agile Platforms. Boostr is that platform.

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To learn more about how boostr is shaping the media landscape, reach out. We'd love to talk.

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