With RMNs, advertisers gain access to a retailer’s first-party data such as purchases made at the point of sale that enhance a marketer’s targeting capabilities with personalized messaging. Another advantage is that an advertiser can send a relevant message when a consumer is in a shopping mode instead of using other digital platforms and in a brand safe environment. In addition, accessing first-party data from retailers is a suitable and privacy-compliant replacement for cookies.
For brands that want to use RMNs to advertise, the biggest advantage is that they get to showcase their products prominently in front of the right audience. This means they can stand out, which improves their chances of driving sales. None of the these benefits were available prior to RMNs, and once cookies were no longer allowed, marketers, advertisers, and brands were limited in the ability to target their preferred consumers.
Goals and Objectives
The goal of an RMN is to leverage its valuable first-party data to attract consumers to its products and/or services to better connect brands with relevant shoppers.
An RMN is an advertising infrastructure that comprises a collection of digital channels (e.g., websites and apps on desktop or mobile devices and CTV) that are offered by a retail company to third-party brands for their various advertising purposes. Purchasing ad space on a retail media network can help brands of all sizes further build their digital marketing strategies.
RMNs’ first-party insights, which is becoming more important for:
Marketers to see how RMNs can help them better plan, make more informed media buying decisions, and implement more strategic campaigns
Consumer packaged goods (CPG) brands, as they chose to work with RMNs to obtain these insights
Non-CPG advertisers, as they plans to increase their investment in RMNs to obtain these insights
Use Case Summary
RMNs have benefits for retailers, brands, and customers. One of the reasons that retail media works so well for brands and customers is that the advertising can feel timely and relevant. The following are examples of how RMNs can help:
Brands can reach relevant shoppers. One of the biggest benefits of RMNs is that they can help brands better connect with relevant shoppers. Since shoppers are generally in the mindset to buy when they’re visiting a digital store, seeing a brand’s advertisement on a retailer’s website can help that brand stay top of mind for consumers as they shop. Another benefit of using RMNs is access to first-party insights, which can help better inform the brand’s marketing campaigns. Beyond insights, RMNs can also help brands better link their ad spend to conversion. The journey from when customers engage with digital ads to when they make a purchase can help brands better understand the connection between ad spend and product sales, which can help them analyze their ROI and make more strategic business decisions such as increasing inventory, allocating resources, or increasing the ad budget.
Customers can find the products they need. As shoppers browse for specific products, they may come across sponsored ads from a brand that relate to what they’re looking for on a retailer’s website. These ad placements can help shoppers discover a new brand or inspire them to try a new product.