What is retail media?

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Retail Media

What is retail media?

Retail media refers to advertising that is placed on a retailer’s owned digital properties, such as their website, mobile app, or other digital channels. Retail media networks are the advertising platforms that retailers create to allow brands to purchase ad space and reach consumers at the point of purchase.

How does retail media work?

Retail media leverages the first-party data and customer insights that retailers have about their shoppers. Brands can use this data to target ads and content to highly relevant audiences on the retailer’s digital properties via a variety of ad formats.

How does retail media differ from commerce media?

Retail media specifically refers to advertising within a retailer’s own digital channels, while commerce media is a broader term that encompasses advertising across various e-commerce platforms, including marketplaces, social commerce, and direct-to-consumer sites. Commerce media provides brands access to a wider range of online shopping environments, while its counterpart contentrates on a single retailer’s ecosystem. Learn more about the similarities and differences here.

What are some types of retail media ads?

Common types of ads include sponsored product listings, display banners, video ads, branded content, and in-app advertising. Retailers may also offer off-site advertising that leverages their first-party data to reach shoppers across the open web.

How to measure retail media:

Retail media campaigns are typically measured using standard digital advertising metrics like impressions, clicks, click-through rate, and conversions. Retailers can also provide sales-based attribution, allowing brands to directly tie their ad spend to actual product sales.

Why is retail media important to marketers?

Retail media allows brands to reach consumers at the point of purchase when they are most likely to convert. It also provides access to valuable first-party data and insights that can inform broader marketing strategies. As third-party cookies are phased out, this growing channel offers a privacy-friendly alternative for targeted advertising.

Who needs to know what retail media is:

  • Digital marketing manager
  • Paid search specialist
  • Affiliate manager
  • Ecommerce manager
  • Product manager
  • Marketing analyst
  • Brand manager

Use retail media in a sentence:

“Dyson’s new retail media campaign on Walmart’s website resulted in a 25% increase in sales of their featured product line compared to their previous digital advertising efforts.”