- Neha Verma
- 1029
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Retail
Image Courtesy: Pixabay
Nearly all shopping was done in-person decades ago, and in-store marketing was a major factor in boosting sales. Today’s world, however, is very different. Since a sizable portion of shopping is now done online, advertisers and retailers must adapt to a brand-new environment that is constantly evolving. Retail media advertising is a developing market with plenty of opportunities for those looking to take advantage of buyers during the buying process. You should be aware of the following information regarding retail media, including what it is, why it matters, and how advertisers can benefit from it.
Why is the importance of retail media increasing?
Retail media is nothing new, and it isn’t exactly inventing the wheel of advertising, but it is a sector that is expanding quickly and continues to do so despite all expectations.
Which puzzle component is the largest? COVID-19. Although a shift toward more digital channels was inevitable, the pandemic significantly sped up the process. More people than ever turned to the internet to shop for daily necessities as a result of store hours being restricted, stock shortages, and shopper fear of getting sick. Additionally, grocery stores increased their curbside delivery options, which also need to be ordered through a website or app.
The statistics speak for themselves: in 2020, more than 10% of all online purchases were made for groceries.
Additionally, the trend isn’t just for groceries. The area of online shopping expanded by 18% between 2020 and 2021. Although retail media hasn’t yet followed this trajectory, its growth is imminent; in the next five years, it’s anticipated that the retail advertising space will increase from $20 billion to $50 billion. As a result, those who start strong are in a good position to succeed as this market picks up.
The statistics speak for themselves: in 2020, more than 10% of all online purchases were made for groceries.
Additionally, the trend isn’t just for groceries. The area of online shopping expanded by 18% between 2020 and 2021. Although retail media hasn’t yet followed this trajectory, its growth is imminent; in the next five years, it’s anticipated that the retail advertising space will increase from $20 billion to $50 billion. As a result, those who start strong are in a good position to succeed as this market picks up.
Advantages of Retail Media
Retail media has clear advantages, as shown by the expansion of this industry. These consist of:
Get a jump on the competition
Although many people use retail media, not everyone does. This indicates that there is still room for growth and significant room for expansion. Contrary to overcrowded markets, there is still room to differentiate oneself. Businesses can develop a strong strategy by developing a solid plan now rather than rushing to catch up later.
Keep up Brand Equity
Brands should aim to appear on the first page of search results, but this is not always guaranteed organically on third-party websites. However, it is possible to obtain placement in the most crucial spots with retail media. Customers are more likely to proceed with a purchase when they recognize the names and brands they are expecting to see.
Take Advantage of Reduced Prices
Considering the state of the market, retail media space is priced. However, as time goes on and popularity increases, this may alter. Those who act quickly can benefit from an appealing market and maximize advertising opportunities before the market becomes oversaturated and pricey. With the clock ticking, this might be advantageous, making it even more important to act quickly.
Display Special Offers
Advertisers have more freedom to experiment with what works and what does not because the market is new and expanding. This can help advertisers find their footing before it is too late and discover ways to differentiate themselves from the competition. Making the most of advertising budgets is possible by emphasizing unique offerings as opposed to using generic ads that will blend in.
The Problems with Retail Media
Retail media has drawbacks, just like all marketing tactics. Keep in mind the potential difficulties and solutions before jumping into the deep end.
Protection of Privacy
Consumers today place a high value on privacy, and they don’t trust companies that can’t protect their customers’ personal information. Advertisers are urged to strike a balance between providing value and safeguarding customer information when implementing retail strategies. In the absence of consent, they run the risk of using customer data to make decisions that jeopardize those relationships.
Getting a Full Picture of Customers
It can be challenging to combine offline and online data for a customized experience, as many advertisers are aware, especially when the information sources are so diverse and fragmented. Retail media adds to the difficulty of providing a curated purchasing avenue by introducing new gaps. The advantages of retail media will significantly increase once advertisers figure out how to incorporate all data in advertising strategies.
Transparency Issues
Lack of transparency is one of many problems that come with the end of third-party cookies. Programmatic advertising presents a particular challenge, including in the retail media space, because of its limited ability to track customer movement and activity. Because it’s not always simple to understand how advertising budgets are being used, it falls even more on the advertiser to make sure that campaigns are proceeding as intended.
