Retail Media Networks: A Comprehensive Research Report
According to eMarketer 2022 was "the year of retail media networks," with spending projected to top $40 billion in the U.S. alone. In a relatively short period of time retail media networks (RMNs) have established themselves as the must-have digital advertising marketing platform for retailers and the must-buy platform for marketers.
A retail media network is defined as a network of digital channels owned by a retailer that allows marketers to purchase advertising space directed by the retailer's first-party customer data to reach target shopper and prospects groups. This approach provides advertisers with unparalleled access to consumer insights, ensuring highly personalized marketing campaigns. By leveraging these networks, brands optimize their ad spend, focusing on targeted ads that resonate with shoppers. Amazon advertising is a key example of a retail media network, in which marketers harness the potential of sponsored products and targeted display ads, maximizing ad revenue and enhancing their digital advertising campaigns. Retail media networks, therefore, represent a potent fusion of data-driven strategies and targeted advertising, helping brands succeed in their overall digital advertising efforts.
So what's all the fuss? The ANA set out to find out, fielding a landmark survey of our members' usage, attitudes, and future intentions regarding retail media advertising, followed up with qualitative interviews with senior marketer members to gain additional learning, insights, and context.
Our report revealed that brands have mixed feelings about retail media advertising, regarding it as a "have to buy" versus "want to buy," and crediting it with driving sales, but not yet convinced that they can drive brand awareness and growth. Fully 75 percent of respondents indicated that sales were the "most important" goal of RMNs, while only 18 percent of advertisers said brand awareness was most important.
The report concludes with specific recommendations for brands to get the most out of their retail media network marketing campaigns.
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Source
"Retail Media Networks: A Forced Marriage or Perfect Partnership?" ANA, 2023.