Retail media is quickly becoming the next big thing for retailers, with many developing their own retail media networks by turning their eCommerce sites into media properties. And it’s no surprise, as this allows retailers to drive more revenue while enabling brands to reach more relevant shoppers.
In this blog, we’ll provide an overview of what it is, why it’s important and how shared data analytics can benefit both retailers and product brands.
What is retail media? Why is it gaining so much traction?
Retail media is advertising space within a retailer’s website or app, usually sold directly to brands or partners within the retailer’s network. It can include onsite advertising, such as paid search, sponsored products, and video ads—as well as offsite advertising, such as display banners, social media ads and TV ads.
The market is growing—and it’s growing fast. Retail media spending has doubled in the last two years from $20.8 billions in 2020 to $40.8 billion in 2022—and it’s showing no signs of slowing down. The market in the US is expected to reach $85.0 billion by 2026, representing 25% of the total digital media spend.
Retail media—a great opportunity for retailers and brands alike
It allows retailers to transform their first-party data into a new source of revenue while building loyalty and providing a better, more relevant shopping experience for customers.
At the same time, it allows brands to differentiate themselves from their competitors, better track campaign sales attribution, and improve their return on advertising spend.
Yet retailers are sitting on a goldmine of untapped data…
Data is essential for measuring the effectiveness of marketing campaigns.
But most retailers don’t have the tools or tech to share data on customer behavior and preferences with brands—creating a massive gap between what brands want to know about customers and the data retailers can actually provide.
So, what if brands and retailers could base their retail media strategy and decisions on shared data insights?
Enter Digital Experience Analytics for retail media
Digital Experience Analytics (DXA) provides retailers and brands with unique metrics, visualizations and recommendations on customer behavior to improve product performance.
This kind of real-time analytics offers retailers, brands and their customers a wealth of benefits—from optimized campaigns and increased sales to better customer engagement.
Here’s a quick overview of the advantages of DXA:
Benefits for retailers:
Optimized ad yield and increased average margins.
Ability to prove Return on Ad Spend and drive more retail media sales.
Increased brand collaboration and differentiation.
Reduced risks and a quick start to data sharing without building technology in-house.
Benefits for brands:
Visibility into unique customer insights while being able to measure advertising results accurately.
Access to a trusted third-party data provider and improved collaboration with retailers.
Capability to benchmark their brand against their competitors and optimize sales performance.
Benefits for end customers
A better shopping experience with more relevant product content
Increased engagement and trust in both brands and retailers
Ready to unlock the power of DXA?
Retail media is quickly emerging as a powerful lever for retailers and brands. But the quality of the shared data between retailers and brands remains insufficient.
That’s exactly why DXA is crucial for retailers looking to grow and level up their retail media network this year. So, if you want to know more about how DXA can help you, book your personalized demo of Contentsquare’s CS Retail Media platform today.
Maylis is a Business Value Analyst at Contentsquare. She’s passionate about Strategy, Operations and Technology, and supports clients in their Retail Media challenges.