Retail Media Networks: Identifying the Opportunities & Understanding the Challenges
The first of a seven-part series by Stephen Gottlich, Solutions Consultant – Innovation and R&D at Gable.
Retail media networks (RMNs) are transforming the way brands reach and influence modern consumers along their path to purchase. But what exactly are retail media networks, and what role will they play in modern retail?
In this seven-part series, we will unpack everything grocery and convenience stores need to know to harness retail media and provide an actionable roadmap to capitalize at each stage of the shopper journey.
RMNs Create Opportunities to Engage at Every Stage
Shoppers today are inundated with choices and brands vying for their attention. Their patience for hard sells or one-way conversations has worn thin. What consumers want now is for brands to put their interests first — to understand them, give them useful, relevant information, and give more than they ask in return for loyalty. Retail media done right gives brands an avenue to have that kind of genuine, consumer-centric, and ongoing relationship.
With retail media ad spending set to hit $106 billion globally by 2027, RMNs are emerging as powerful profit centers. For grocery and convenience stores dealing with razor-thin margins amid rising digital disruption, retail media networks (RMNs) introduce a sizeable revenue stream. As shoppers browse products and make buying decisions, RMNs allow brands to serve up relevant ads and personalized recommendations to trigger consideration and choice.
The opportunities to connect are endless, particularly for those who own a Private Media Network. Retailers can install digital screens like video walls, kiosks, shelf displays (ESLs), end caps, and more throughout their physical stores. These digital assets allow CPG brands to deliver targeted video and display content to shoppers from the moment they park their vehicle, as they enter the store, in-store, and at the point of decision.
And with retailers possessing a treasure trove of first-party shopper data, RMNs enable CPG brands to reach consumers in a privacy-conscious way amid the deprecation of cookies. The rich insights into historical purchases, product affinities, and real-time browsing behavior allow for precise targeting and closed-loop measurement of sales impact across the purchasing journey.
Understanding the Challenges and Complexities of RMNs
Getting retail media networks off the ground doesn’t happen overnight. To effectively promote CPG brands across owned channels, retailers must first establish a strategic foundation and overcome some common hurdles.
From financial justification through organizational and technology mapping, culminating in piloting and rollout, strategic clarity is a must before embarking on the multi-year transformation in full force.
Once the strategy is set, retailers will have a clearer understanding of the tactical and architectural components needed to build a successful RMN.
Running an effective RMN isn’t easy. To maintain the system, it requires collaboration with experts across various disciplines, including technology, content management software (CMS), content design, media expertise, and managed services. Success also requires collaboration across all internal departments and external partners.
Below is a high-level overview of the six components needed to set up and run a high-performing, ROI-generating RMN:
- Installing digital ad displays in stores and other intersecting venues
- Building augmented reality capabilities for immersive brand experiences
- Establishing repair and preventative maintenance protocols to minimize downtime risks
- Software/Platforms
- Developing self-serve interfaces and automation
- Integrating ad tech stacks across e-commerce and private marketplaces
- Content/Creative
- Producing engaging short-form videos and rich media with a focus on relevancy, fun, and play
- Optimizing branded content strategies and asset management
- Technology/Integration
- Centralizing first-party shopper data into unified customer views
- Building APIs and pipelines to ingest CPG partner content
- Talent/Organization
- Hiring retail media experts in strategy, sales, operations, and technology
- Appointing central leadership to align strategies across retail merchandising, marketing, and media monetization initiatives
- Measurement/Optimization
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- Implementing analytics and attribution models proving sales impact
- Evolving cross-channel media mix modeling capabilities
The Path to Success is Paved by Retail Media Networks
Stay tuned for part two of our series on retail media networks, where we take a deeper dive into the hardware and infrastructure you’ll need to run your RMN.
We’ll walk you through a case study example and share emerging trends, such as programmable digital smart tags that can highlight products on sale, out-of-stock items, product locators, and more.
Explore the Many Benefits of Partnering with Gable
Gable’s innovative approach to digital signage displays and integrated systems isn’t just focused on the technology. It’s fueled by our desire to understand, enhance, and elevate your grocery or convenience store. Our service offerings merge multiple disciplines to create unique, dynamic solutions you won’t easily find elsewhere. We welcome the opportunity to discuss your RMN goals.
About Gable
Gable has been a leader in visual communications for over 40 years. We are passionate about elevating how people perceive, interact with, and remember brands, buildings, and places. With a rich legacy in blending the timeless artistry of traditional signs with the dynamic possibilities of video displays & integrated AV systems, Gable continues to shape the future of visual communications. For more information, visit www.gablecompany.com or call 800-854-0568.
