Retail media
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Retail media channels have become established as increasingly important for promoting goods and services at or near or even further beyond the points of purchase and consumption. Retail media is now being taken very seriously by most traditional media agencies. Companies partly or wholly devoted to retail media include Redbus Outdoor, who operate retail media networks across a host of UK retailers, dRM (dunnhumby Retail Media) who handle the Tesco Retail Media, ABC Media, who sell the retail media for the Co-op and Capture, who specialise in planning and buying across retailer retail media space.
Retail Media originated as media available within the retail environment. This has now developed in to a media discipline in its own right as new retail media channels have been added. Retail Media now reaches outside of the retail environment to encompass media channels such loyalty program marketing, couponing and door drops, fleet media (retailer's fleet vehicles, etc.).
Though many retail media channels are found inside the retailer's store/environment, the media channels themselves are not always 'owned' or operated by retailers. Many retail media channels are operated independently by specialist media companies who also manage other media outside of the retail environment.
Retail media, context and targeting
Retail Media channels are to a large extent defined by the context of the retailer. The majority of retail media channels reach their audience at or near the point of purchase or point of choice. Research suggests media placed at or near the points of choice/purchase can have a significant impact on purchasing decisions (PoS) 1 Media owners and agencies have made significant headway in recent years in understanding the true value of retail media channels.
There is potential for conflict of interest between the retailer selling the media and the CPG/FMCG buying the media which is why retailers often engage a third party media owner to operate and sell media space on their behalf.
Retail media challenges
- Audience measures: There are several methods for evaluating the audience for retail media, whether total footfall, segmented audiences or sales uplift attributed to retail media channels
- Buying process: Dependent on the retailer, product, sales cycle and retail media channel etc., there different media sales cycles to fit the particular requirement.
Retail media networks
Retail media networks are channels spanning individual retailers or a multitude of retailers. They can range from static posters, POS material, audio, visual/digital and many things in between. Networks can therefore provide narrow cast and broadcast audience buying solutions. As shoppers spend time in stores, it becomes difficult for them to avoid in-store advertising and this can have real benefits for advertisers, who not only can ensure their campaigns are seen, but that they can also be acted upon, especially if the advertised product is available in the store.
Retail media networks now offer considerable levels of accountability in providing audience measurement techniques in the same way as traditional broadcast or print media.
References
- The 1995 POPAI Consumer Buying Habits Study (Point-of-Purchase Advertising Institute, Englewood, NJ).
- The Arbitron Retail Media Study Volume I: The Impact of Retail Audio Broadcasting (Arbitron).