The world of digital advertising is constantly evolving, and with the rise of e-commerce and the vast opportunities presented by retailer data and audience insights, Retail Media has emerged as a powerful advertising avenue. In Belgium and across the globe, the paradigm shift towards Retail Media is making the advertising landscape evolve. In this article, we’ll try to understand better what Retail media is, and how it can be leveraged in Digital advertising strategies.
Understanding Retail Media
So, what exactly is Retail Media? It includes a range of ways to reach customers, like advertising in physical stores and on retailer websites and apps. It also involves using data from retailers to target customers on other digital platforms.
The rise of e-commerce and changes in how people shop have made Retail Media even more significant. More and more people in Belgium, about seven out of ten, are buying products online. This means retailers, especially in the food industry, have to adapt and offer services that fit the online shopping experience. It also opens up new advertising opportunities for brands to reach customers in different ways.
The Retail Media Evolution:
The association of Retail Media with the digital realm is evident. Following the emergence of search and social media, Retail Media represents the "third digital wave." The IAB Europe predicts that investments in Retail Media will more than double in the next three years. Notably, retail giants like Amazon are surpassing traditional advertising channels, with advertising revenues ten times higher than total media investments in Belgium. The digital transformation has propelled Retailers into a rapidly evolving landscape, and some of them are already embracing these changes.
The Intersection of Media Management and Data Expertise:
Big retailers also have the advantage of owning a lot of first-party data that they can leverage for interesting targeting capabilities. For example, a retailer like Delhaize has more than 2.5 million active and identifiable customers (thanks to their “superplus” loyalty program) for which they can leverage their purchase behaviour to offer to advertisers. It is thus not surprising that Delhaize created its own agency, MMD, to monetize this business data.
Brand Safety and Contextualization:
One of the inherent advantages of Retail Media is its brand-safe environment. Advertisers place great importance on ensuring their investments are in secure environments. Retail Media provides a trusted and familiar space, instilling consumer trust in both the retailer and the associated brands. This safe environment fosters stronger contextualization of messages, aligning seamlessly with the consumer experience.
Optimizing the Customer Journey:
Retail Media adopts a "full-funnel" approach, enabling brands to engage customers throughout their entire journey, from building awareness to final conversion. Brands can maintain top-of-mind presence, generate interest and inspiration, and ultimately drive conversion by strategically implementing tailored strategies at each stage of the customer journey.
To conclude, Retail Media is transforming the advertising landscape in Belgium and worldwide. By using retailer data and audiences, brands can effectively connect with customers, deliver targeted messages, and achieve better results. It offers a safe advertising environment, leverages valuable data, and optimises the customer journey. Retail Media is part of the future of advertising, providing exciting opportunities for retailers and brands alike.
If you want to know more about Retail Media, Media Marketing and MMD have developed a series of Podcasts and Semetis was invited for its first episode.
Charlie Deschamps
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