Essentially an anthology of digital channels owned by a retailer and then offered to third-party businesses for advertisement opportunities, retail media networks are becoming a household term in the retail industry.
According to DevPro Journal, retailers are increasingly relying on these digital channels and the popularity of e-commerce to capture customer attentions. Case in point: ESPN digital had 111 million unique visitors per month as for its 2023 fiscal, and Amazon had 2.4 billion per month as of March 2023.
Some well-known retailers like Walmart and Target both offer their own platforms called Walmart Connect and Target Roundel, respectively. Insider Intelligence is predicting this ad channel to grow by 20 percent each year through at least 2027.
So what does this mean for retailers?
The idea is that companies can get specific messaging across to the right audience effectively. So for brands looking to raise awareness (or revenues) and reach intended audiences, advertising on a retail media network might be the right route. Conversely, if you’re a retailer that’s claimed some “digital real estate,” and built a robust audience, you too could theoretically monetize some of that space by allowing other brands or retailers to advertise there.
Stay tuned to shopassociation.org for more coverage on this growing trend.