The websites, online stores, and apps of major retailers have been around for decades. Over that time, they have collected a mountain of customer data: from where they live to their purchase history, on-site behavior, and shopping preferences. This data helps them target ads to specific groups of consumers. And that's what a brand buys space on a retail platform for.
It seems that you can avoid buying advertising from a retailer and collect similar customer data yourself. But it’s not that simple:
It's a long time. A brand's website needs to exist on the Internet for 5-10 years to collect enough data.
It's expensive. The brand will need huge budgets to promote cayman-islands phone number data its site to the top positions of search results and attract paid traffic .
It is much easier to go to the retailer's platform, buy advertising and use everything ready-made. Thanks to algorithms, advertising on the platform will be shown only to those consumers for whom it is relevant. This is why brands value retail advertising platforms.
Read also: How to use customer behavioral data to increase profits?
How do Retail Media networks work?
The main components of retail media are the retailer, which owns the advertising platform, the advertising platform itself, and the brand, that is, the advertiser.
This is how the media works:
The retailer provides customer data and digital advertising space on a rental basis.
The advertising platform connects the seller and advertisers, provides advertising display, collects analytics, and builds reports.
The advertiser pays for advertising space on the seller's platform.
Important point: the seller's advertising platform is not just a website, but a specialized resource with advertising settings, reports, and management tools.
Here's an example. The American company Amazon has a retail media called Amazon Advertising , and Walmart has Walmart Connect . These platforms not only place advertising banners, but also:
create recommendations for advertised brand products;
offer branded landing pages;
allow you to choose the type of advertising - banner and video advertising;
provide coupon settings;
allow brands to team up to launch joint campaigns.