Retail media is on the upswing, but it’s fast approaching the ‘late majority’ phase of the adoption cycle. Just like with stocks, where you want to buy low and sell high, now is the time to invest in retail media to realize the most benefit.
These are the top four advantages for brands and retailers that prioritize retail media now:
Pre-empt the competition
Retail media hasn’t become a staple in every brand’s budget yet, but all signs indicate that it will be soon. Many progressive brands have had great success with the medium and based on strong results and the current ecommerce boom, are planning on investing more. In fact, according to an October 2020 study commissioned by Criteo and conducted by Forrester Consulting, 76% of brands agree that their growth depends on retail media.
Brands that wait to jump on the bandwagon will be forced to play catch-up later on. This is likely to result in an expensive fight for category leadership. With retail media already through the early adoption phase, the time to test is gone. Brands need to make it a core part of their marketing strategy, or they will pay a premium to regain lost ground and win their ‘fair share’.
Maintain brand equity
When shoppers go to a physical store, they expect to see certain brands on the shelves – like Clorox in the cleaning aisle, or Crest in the toothpaste aisle. Losing that visibility on the digital shelf can be damaging to overall brand perception.
Just like in brick-and-mortar stores, brands need to be visible where people expect them to be (and not buried on page 2 or 3 of the search results). Criteo data shows that 85% of sales are driven by the first page of search results. And on that first page of results, the first 10 SKUs account for 25-30% of revenue. Which means that ensuring visibility preserves both equity and profits. Retail media solves for this by helping brands secure their share of the digital shelf. And with innovative creative capabilities and eye-catching placements, it can also help brands stand out.
Take advantage of lower prices
Simple economics dictate that as more and more brands enter the retail media space (which they are), the demand will outweigh the supply of inventory and minimum prices will increase.
Brands that get in on the ground floor of retail media can reap the most return on ad spend (ROAS) and lock in favorable pricing. The current data supports this, as 79% of brands in the Forrester Consulting study say they have seen an increase in ROI/ROAS of their ad campaigns thanks to investments in retail media.
Capture more brand demand with unique offerings
For retailers, now is the time to experiment with their product and service offerings. The attention is on retail and the winners will be the ones who begin to build programs that extend beyond shopper marketing needs. As Forrester puts it in their Retailers: You’re the Next Media Moguls report (February, 2020), “Retailers: ignore media networks and you will fall behind.”
Today, brands are eager to access retailers’ new placements and first-party data and see what results they can drive. The Forrester Consulting study confirms this, with 79% of brands agreed that influencing purchase decisions at the point of sales was important or very important when investing in retail media, followed by 77% saying they can measure campaign effectiveness against sales.
Retailers that offer retail media now will see their ad inventory sell fast and their revenues rise equally as fast.
Want to strike while the iron is hot?