The case for and against retail media networks as brand-building channels
Retail media networks pitch brand-building on shopper data, but ROI metrics, costs and budget fights hold them back.
The concept of retail media networks initially revolved around the idea of reaching shoppers while they were in the midst of their shopping experience to make a sale. However, as these networks have evolved, they are now pitching to advertisers and seeking additional financial support, emphasizing their ability to build brand identities on their respective platforms.
Although Amazon, the retail giant with its own technology and measurement tools, stands out as a leader in this field, other retailers have also capitalized on this opportunity. Through strategic partnerships, they have managed to offer a similar set of capabilities. Notably, these partnerships include Kroger's collaboration with Disney Advertising, Walmart's alliances with TikTok, Meta, and Snap, and Instacart's joint ventures with NBCUniversal.
Kim Mayo, the executive director of retail media at Trade School, highlighted in a statement to Digiday, "Retailers own far more than online ad placements. They own aisles, screens, apps, content, and cultural moments." This distinctive advantage allows retailers to leverage their physical and digital assets to create a comprehensive retail media network, extending beyond mere ad placements and tapping into various touchpoints in the consumer journey.
Written by urgent.news from Digiday's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
