Retail media networks are designed to enable retail firms to sell ad space to third-party brands on their digital channels. Through these networks, brands reach out to their audience and build robust digital marketing strategies. With the growing popularity of online shopping, the popularity of retail media has also increased among brands. In this growing competitive business world, third-party businesses often collaborate with retailers to create ad campaigns for reaching out to target audiences. This is where retail media comes into play. Discover what the retail media network is, how it works, and the top 5 retail media networks that are trending in 2024.
What is a Retail Media Network?
A retail media network is an advertising platform that includes various digital channels offered by a retailer to third-party brands for advertising purposes. By purchasing ad space on a retail media network, brands of all sizes are enabled to strategize and implement their digital marketing strategies. According to a Statista report, expenditure on ads in the global advertising market is forecasted to reach $1,088 billion in 2024. This reflects the growing spending of businesses on advertising their brands throughout the world. Businesses nowadays are utilizing their digital channels to help brands reach out to a wider audience to engage customers and accelerate sales. Retail media networks are giving this opportunity to businesses to expand their boundaries and engage with larger customer bases.
Importance of Retail Media Network
Retail media network is utilized by advertisers to bring businesses closer to the point of sale. Through retail media, ads are more likely to convert into sales. However, the importance of retail media goes beyond advertising. It includes several other aspects that collaboratively help a brand win a competitive edge.
- Spending on Places Where Customers are Already Spending
As retail media involves the ads already placed on retailers’ media networks, it helps brands advertise in places where consumers are already spending. Through retail media networks, brands purchase ads to increase their visibility among customers.
- Understanding Consumers’ Demand Patterns
Shoppers’ engagement with a brand’s retail media offers third-party brands an opportunity to receive first-party insights to apprehend consumers’ shopping patterns. This understanding helps brands customize their products to achieve consumer satisfaction.
- Making More Informed Marketing Strategies
Through these first-party insights, marketers are becoming more capable of making informed media purchasing decisions. The consumer data empowers brands to design and implement more strategic campaigns that best engage consumers.
Top 5 Retail Media Networks of 2024
The retail media landscape is dominated by the giant e-commerce platform Amazon, earning an ad revenue of $47 billion. Amazon’s growth in the retail media market has expanded opportunities for many marketers to strengthen their retail media network. Here is the list of the top 5 retail media networks that are dominating the industry in 2024-
i) Amazon Advertising
Amazon’s spending on digital advertising in the United States
(Source: Statista)
As mentioned earlier, Amazon has emerged as the biggest name in the retail media market. With its diverse media programs, Amazon has paved the path for many brands and consumers to engage with each other. As per the Statista report, Amazon’s digital marketing expenditure in the United States is expected to increase by 15.4% by 2025 and 17.3% by 2026. The growth percentage of Amazon’s digital advertising expenditure reflects its popularity in the retail media industry. Another study reveals that around 184 million customers are enjoying the subscription of Amazon’s premium packages in the US. Starting from sponsored products to sponsored displays, Amazon is enabling advertisers to reach target audiences on its digital platforms.
ii) Walmart Connect
Walmart Connect comes just after Amazon in the retail media market, with a revenue growth of 30% each passing year. This retail organization is projected to capture 6.8% of all US retail media ad spend in 2024, as per an e-marketer report. Its expansion in the retail media is helping brands to connect with larger audiences across its digital channels. Walmart Connect’s services include search, display, and in-store advertising.
iii) Target Roundel
Target Roundel, or Target Media Network, is a rebranded retail media platform of one of the biggest retail businesses in the US, Target. Target has opened the way to retail advertising for brands like Coca-Cola, Unilever, Disney, and Microsoft. Its offerings include Target Product ads, search ads, Roundel display, and CTV.
iv) Retail Media+
Apart from the big retail media platforms, niche retail media platforms are exclusively helping advertisers. Retail Media+ by Home Depot delivers a range of advertising services in the home improvement sector. By leveraging its first-party data, advertisers are promised to get high returns on their ad investments. Its services include- onsite, offsite, and email advertising.
v) Criteo Retail Media
Criteo is a connected retail media platform that aids brands in purchasing retail media largely. This all-in-one platform offers self-service to brands by helping them launch campaigns across multiple retail media networks. Target and Walmart are some retailers that partner with Criteo.
Retail media networks are designed to help not only advertisers but also customers to track and connect with their preferred brands across the retail media platforms. Retail media networks play a significant role in helping businesses flourish with accelerated sales and consumer engagement. Apart from these top 5 retail media networks, there are many other networks that are shaping the future landscape of the retail media market.
