Retail media has experienced a surge in popularity recently. It is far from being a flash in the pan though, in just over a decade it has already reached $30 billion in revenue, a feat which took digital ads 14 years and social media 11 years to achieve. Spend on ecommerce platform adverts is set to rival that of TV ads in the next three years.
Today, Vladi Schlesman, MD EMEA at ChannelAdvisor, a Commercehub company, discusses retail media with top tips for handling your retail media strategy:
The explosive increase in the popularity of retail media comes down to one thing. Conversion. Retail media allows brands to promote their products directly within an online retailer’s platform, such as Amazon. And its direct approach has been proven to drive conversions when used effectively. This type of advertising can be particularly effective because it targets customers who are already shopping for related products, and can often be more cost-effective than traditional advertising methods.
With profitability top of mind for many retailers and brands, retail media’s effectiveness is certainly appealing. However, it isn’t just about converting sales. By using retail media to reach their target audience, brands can increase visibility and brand recognition. For example, promoting their products on an online retailer’s website or app, brands can reach customers who are already interested in similar products and are ready to make a purchase. Additionally, retail media can provide valuable insights into customer behaviour and purchasing patterns, allowing brands to optimise their advertising strategies and improve their conversion rates over time.
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