Contents
- Retail Media Networks explained in a nutshell
- 3 (of many) benefits that justify the hype
- Big Numbers. Big Opportunities.
- What questions should you ask before building a Retail Media Network?
- Finding the right technology partner can make or break your goals
- Take the next step with LiveRamp’s Safe Haven
Looking for an advantage in an increasingly competitive marketplace? Learn how Retail Media Networks work, their benefits for retailers, and how to get started with them here.
Retail Media Networks explained in a nutshell
The advertising and retail industries face more uncertainty than ever.
CPG brands must battle with consumers’ shrinking attention spans. Retailers must fight against shrinking margins.
Retail Media Networks help both.
As retail-owned digital platforms, they open the door to consumers via website, app and other digital platforms within a retailer’s ‘network.’
This offers huge appeal for advertisers, who stand to access consumers who are actively shopping — and thus more primed to buy.
Successful Retail Media Networks boil down to effective data collaboration. When retailers share their first-party data with brand partners, it allows for more personal, efficient ad targeting for end-customers.
Everybody wins. Retailers drive an additional revenue stream, brands attract eyeballs (and make sales), and the end customer gets more relevant shopping interactions.
Retail Media Networks are predicted to reach ad revenues of $100 billion by 2024 (BCG)
“LiveRamp will be a critical accelerator of Carrefour’s transformation into an industry-leading data-driven retailer. We are excited by our partnership with LiveRamp, working together to deliver robust new consumer insights and capabilities to hundreds of our CPG partners on a global scale.”
Elodie Perthuisot, Executive Director E-Commerce, Data and Digital Transformation, Carrefour Group
3 (of many) benefits that justify the hype
- Retail Media Networks open the door to a brand new revenue stream. How? By sharing your first party data with brand partners — who are looking to find more targeted audiences via your owned and operated channels.
- Retail Media Networks can also boost your eCommerce profitability. Selling product placements and ad inventory on a site you own and operate means you can establish new and high-margin revenue streams.
- Finally, you can deepen your supplier relationships. As gatekeepers to your network’s customer data, you have the power to drive vast insights…growing sales and brand relationships in the process.
Big Numbers. Big Opportunities.
- 20% — amount of marketing budgets that CPG executives currently invest in Retail Media Networks (RMNs). [LiveRamp]
- 10.7% — amount of global ad spend attributed to Retail Media. [Group M]
- 60% — predicted amount of global ad spend attributed to Retail Media over the next four years. [Group M]
- 4th — Retail Media is the fourth largest advertising media format globally… and will overtake linear TV ad spend by 2025. [WARC]
- 64% — of CPG executives predicted an increase in their RMN spend over the next 12 months. [LiveRamp]
What questions should you ask before building a Retail Media Network?
Developing a retail media network comes with unique challenges. Building a strategy based on what you feel is most important to your business can take time to iron out.
Furthermore, you probably can’t build it alone. Do you have the necessary skills within your organisation (from developer to media buying know-how)? Or will you have to hire them externally?
The greater the demand for your first-party data, the more resources you’ll need to launch your offering, whether that be expertise in analytics, technology, operations or sales.
To build a retail media business, your data needs to be scalable and actionable. Is your data primed for a partner to leverage as part of a campaign? If not, you may need to collect more, and resolve it through an identity resolution partner to ensure you accurately connect it to the right consumer.
It’s also worth double checking how prepared you are for data collaboration. For example, do you have the right tech stack in place? Are your in-house resources sufficient for the task at hand? Do you have the right partners in place? And how will those partners leverage your first party data?
Finding the right technology partner can make or break your goals
Whether you’re building an ad business or performing a technical audit — finding the right technology partner to help you is crucial. If they can’t provide the right level of privacy, for example, you’re fighting a losing battle.
Security and trust should underscore your strategy, especially the environment you use to share first-party data with brands.
Look for a partner who understands the complexities of consumer data. You’ll also need someone with a track record for innovation (not taking a ‘one-size-fits-all’ approach to privacy).
As a bear minimum, you’ll need a partner whose technology allows for tailored data access based on trust.
Take the next step with LiveRamp’s Safe Haven
If you can’t keep your data safe and secure, your brand partnerships won’t get off the ground.
That’s where LiveRamp Safe Haven comes in — and why 100s of retailers already use us to drive effective retail media programmes.
LiveRamp Safe Haven helps you build peace of mind as well as your own Retail Media Network. You get privacy-conscious, configurable collaboration and enhanced measurement capabilities.
Safe Haven lets you monetise first-party data and stay in control over who can access your data and for what purpose. Think of it as an enhanced data clean room that gives you:
- Advanced analytics and measurement
- Controlled data collaboration and activation capabilities
- Interoperability with walled garden solutions
- Closed-loop measurement
Looking for more advice? Get in touch with our experts