What is retail media advertising for retailers?
Advertising is the core of any business since it is one of the major drivers of sales. There are several types of advertising, each with its strengths.
There has been significant interest in retail media advertising. Generalizing is advertising that is done within retailer applications and sites, usually by brands that directly sell products to the retailers. The practice has its roots in brick-and-mortar stores. Decades ago, businesses started paying retailers so that they display in-store signage and promotional materials within their shops to capture the attention of customers and drive more sales.
Nowadays, technological advancements have allowed retail media advertising to evolve up to a point where it is now predominantly in digital spaces. The fundamentals of retail media advertising involve targeting consumers as close to the point of sale as possible. There are several types of media advertising. These include online advertising, in-store advertising, loyalty cards, vouchers, and so on.
According to the statistics, digital retail grew by 32% in 2020. It now accounts for about 14% of all retail sales. It shows any consumer-centric businesses should begin to aggressively tap into the retail media advertising space if they are to grow their sales funnel.
What are different digital retail media advertising channels?
It is paramount for businesses to be aware of different channels they can use to launch a successful retail media advertising campaign in the digital space. There are several channels, and they provide excellent results.
Businesses can make use of e-commerce mobile applications like Uber Eats to advance an effective retail advertising campaign. They enhance their functionalities so that businesses can target consumers on their mobile devices. Considering that there is a significant amount of retail transactions being completed on these mobile applications daily, it is an avenue that businesses should exploit. However, it is essential to ensure that they advertise their product on the right mobile applications to have the best ad campaign.
Of late, video streaming giants, such as HBO Max, Hulu, ESPN, and Disney+ have provided an opportunity for businesses to advertise on their platforms. It will allow advertisers to have a wider coverage considering that the streaming services industry is one of the fastest-growing sectors in the entertainment market. It is expected to reach over $100 billion by 2023, according to MarketWatch. Consumers have also shown that they are willing to sit through the adverts provided that it lowers the subscription costs.
Advertisers can also utilize the rise in demand for over-the-top (OTT) media consumption to do retail advertising campaigns. It includes embracing platforms, such as Roku or Fire TV. These are effective tools. For instance, the retail ad spent on the Roku OTT platform grew more than twice year over year as of the fourth quarter of 2020.
Connected TV, better known as smart TV, is one of the channels that brands can utilize to launch the best advertising campaigns. Their ability to access the web and offer consumers content that goes beyond what is being broadcasted makes them an ideal spot to target younger audiences who are gradually drifting away from traditional television.
Lastly, social media campaigns have become a popular option for doing digital retail media campaigns. Business gets an opportunity to interact with potential customers daily since these platforms have grown to host millions of users. Popular platforms that can be used for effective advertising in retail include Tiktok, Facebook, Twitter, and Snapchat. In this day and age, every brand should have an account on these platforms. It is highly beneficial, especially while capturing young people who have grown to spend a significant portion of their time on these platforms.
Top 5 retail media ads that brought amazing results
1. IKEA comes up with an interactive catalog
It is safe to say, IKEA ranks high among the companies that have had efficient advertising in retail. Their marketing approach stands out among the rest due to its originality, distinctiveness, and imagination. The company uses social media platforms to reach a wider audience. It includes Tiktok and Youtube, where they provide details about their products. The company’s ad campaigns are characterized by top-quality photography and videography, leaving a lasting impression about their products in their clients’ minds. IKEA’s ad campaign also involves social media influencers who have become a significant part of modern-day advertising. Their approach has resulted in them being the fourth most valuable furniture retail in the world in 2020.
2. Domino’s implements a clever marketing approach
Domino’s has run one of the world’s best advertising campaigns, having implemented a truly creative approach. The company’s success cannot be attributed to the way they make their pizzas, for there are numerous pizza brands in the world. It is true to say that their advertising team has a way of triggering a craving for Domino’s pizza, which is what other brands fail to do. The company displays its creativity-filled ads on social media platforms. For instance, the retail advertising examples of Domino’s pizza include sponsored ads on Facebook, Google, and Youtube. They also utilize influencer marketing to promote their brand. Their campaigns have yielded excellent results. The fast-food chain is one of the most loved pizza brands globally, selling over three million pizzas daily.
3. Brewdog raises awareness of drunk driving
Brewdog has had an unconventional advertising philosophy. Instead of adhering to the several good aspects of beer, they decided to highlight the dangers of drunk driving in their campaigns. The strategy has worked, setting them apart from other players in the same industry. As a result, Brewdog is now one of the most recognized breweries across the globe. The company’s marketing campaigns are mainly hinged on social media. They often use videos and aspirational photography featuring their founders to showcase their products. The company also adds education and humor into their ad content so that they reflect their brand personality. Their advertising approach has been seen to be among the leading craft beer brands by sales in the United Kingdom.
4. Coca-Cola encourages positivity
No doubt, Coca-Cola is one of those brands that have had the most successful advertising campaigns in the retail space. Their positivity-themed ads have been a major driver of sales across the globe. Most stores have Coca-Cola-themed posters or refrigerators on them. The company has invested heavily in this area. It is also common to see Coca-Cola-branded vehicles. Coca-Cola is also visible on all popular social media sites. The company is active on Facebook, Twitter, Snapchat, and Pinterest. It ensures that the customers are kept engaged. The company understands that its customers are spending tremendous amounts of time on social media daily. Combined with its positive vibe, it has managed to garner millions of followers across platforms. The effectiveness of the campaigns has also been shown in terms of revenue. Recently, the beverage giant’s revenue grew by 42% after doubling its marketing spend.
5. McDonald’s takes advantage of late-night cravings
McDonald’s, the fast-food giant, is one of the companies that have launched the best ad campaigns. The company has capitalized on people’s late-night cravings to boost sales. A closer look at their marketing strategy will reveal that the company has used broadcast media to reach its customers more than any other channel. It uses TV and radio to raise brand awareness, promote new menus and meal deals, and publicize its philanthropic endeavors. One of their adverts’ major strengths is timing. McDonald’s adverts pop up on streaming services platforms during some of the globe’s favorite shows. The company also capitalizes on the sport. It is estimated that the giant spent over $50 million on advertising in the United States in November 2018, at the zenith of the NFL season. It shows how serious the company is when it comes to maximum engagement with its ads. The efforts have also been rewarding. According to Forbes 2020, the company’s revenue is expected to grow by 22% in 2023.
Why does retail advertising matter now?
If there has been a point in time when retail advertising has mattered, then it is now. The Covid-19 pandemic has pushed both businesses and consumers towards a digital world. The lockdown restrictions in effect in most locations have driven up the need for e-commerce. Consumers have not only embraced online shopping, but they have also added the kind of goods that they are comfortable purchasing to the list. The United Nations trade and development experts estimate that e-commerce saw its share of retail sales rise from 16 to 19% in 2020. As for groceries, they made up 12% of all U.S. e-commerce in 2020, much of which came from first-time shoppers.
Today, advertisers have fewer tools to optimize their paid acquisition campaigns due to the arrival of iOS 14.5, as well as to increased privacy restrictions. Thus, the relative value of the first-party, on-platform data will rise. It is quite obvious that retail is no longer about simply moving SKUs but rather about acquiring crucial data.
With this in mind, it is paramount that businesses embrace the winds of change and pump more resources into retail media advertising so that they do not sink into oblivion, which is always the case with companies that resist change.