Retail Media Networks were born when stores (or retailers) decide to create their own advertising platform on their sites, applications or other media to promote the offers of brands or manufacturers on their pages.
This modality opens a new line of business for retailer companies, especially those that have a physical and online presence since it allows them to generate additional profits and become more competitive. While for customers, properly targeted and designed Ads make it easier for them to make better purchasing decisions.
Due to the potential of Retail Media Networks, retailers intend to allocate more budget to expand their reach and teams in this area. This brings some challenges, it increases the value for brands, as well as for the products that are offered, Retail Media Networks are not only proving to be effective but have now become essential to attract more consumers and, in the process, generate more profits for retailers.
These advertising models have advantages. For consumers, greater confidence is generated in the advertised brands, as well as the certainty that the offer and promotions are supported by the retailer.
For advertisers, the clearest benefit is access to first-hand data that is collected directly at the point of sale. This allows obtaining more valuable insights that help to better determine customer behavior and adjust the advertising strategy.
Another important point for those who buy advertising is that the profile of clients they will access is very clear, since the market niche of each retailer is generally well defined.
Retailers' race to dominate advertising is accelerating faster and faster. So much so, that some of the most recognized retailers already have their own platform to create targeted campaigns and develop Ads to boost the growth of their e-Commerce sites.
For example, Walmart has its Walmart Seller Center with which it seeks to combine both physical and online purchases, in addition to taking customers from the app to the location of the product on the supermarket shelves and Amazon (one of the pioneers in Retail Onsite Advertising) has been growing steadily for years.