Retail Media is basically an advertising strategy for a product or service, focused on conversion and the needs of the end customer.
Think about the following experience that you have probably been through yourself. You go into a store to buy an essential product, and at the counter there is a flyer or a complementary product is recommended that can greatly enhance the use of the initial item you were looking for. This is a physical, everyday example of Retail Media.
It also happens in the digital space, which has boosted the resource's popularity over the past year.
The Retail Media Insights survey, conducted by Newtail, with the support of Comscore and Enext, measured the relationship of 120 brands, retailers, and agencies with the advertising segment in Brazil. The figures showed that 64% of brands already work with related strategies.
This trend is happening because marketers have realized that the closer to the purchasing decision they advertise their products, the higher the chances of conversion.
So, Retail Media is essentially an advertising strategy for a product or service, focused on conversion and the end customer's needs. The intent is to reach the consumer at the exact moment of purchase and influence their decision-making. That is why ads appear in spaces such as retail networks (Mercado Livre, OLX, etc.).
In the study “How Retail Media is Reshaping Retail”, by Boston Consulting Group (BCG) and Google, data indicated that this type of advertising is projected to generate around $75 billion in profit by 2026, with an annual growth of 22% in advertiser spending.
In other words, retail networks profit from the space made available to advertisers, and advertisers benefit after segmenting their product to be offered directly within a more specific search.
Both on and off platforms, Retail Media has a high conversion power precisely because it targets a specific interest. Considering Google searches and physical stores, the use of keywords and more targeted actions brings greater effectiveness when it comes to influencing the end customer's decision.
Furthermore, this type of advertising goes hand in hand with the use of platform data, which not only enables the segmentation and targeting of personalized ads, but also creates a more effective customer journey. This is also one of the determining factors.
Beyond Retail Media
However, it is crucially important to remember that any and all marketing decisions stem from a strategy. And since ABM always focuses on our partner's needs, we point out that it is important to evaluate whether what your business needs is a quick-conversion strategy.
Retail Media is excellent for increasing sales and taking advantage of times of the year when shopping and conversion trends are much higher for your business. But advertising and selling more than just your product—selling your brand—is also a major factor in helping the end customer choose what you offer.
The “What Would the Internet Be Like Without Ads?”, by IAB Brasil, which sought to understand how Brazilians perceive digital advertising, pointed out that personalized ads are preferred by 62% of Brazilians.
Participants cited ads based on what they are currently searching for (25%), ads related to products or services of interest (21%), and ads from brands they already know and trust (16%).
In other words, brand credibility and identity building can play a role in the purchasing decision.
And ABM ABM is your partner to further enhance your business's potential and find the ideal strategy for your current stage. Get in touch with us, and if you have any questions, keep following our blog for more content like this!
