Retail Media: The future of digital advertising for retailers

May 22, 2023 | Merchandising

By Anders Spicker

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Retail Media is a huge hype within e-commerce, but only a few marketers know what it is and what to achieve with Retail Media.

In this blog post, we will dive deeper into what Retail Media is, how it works, and why retailers should incorporate it into their marketing strategy.

This way, you will get ahead of the trend and gain the advantages of working with Retail Media.

What is Retail Media?

Retail Media is a form of digital advertising within the retail environment. It involves placing ads on your website that target shoppers while they are browsing and purchasing products.

The popularity of Retail Media has increased in recent years because it allows retailers to use your online store as a media platform where you can sell advertising spaces to your suppliers.

With Retail Media, retailers can generate additional revenue because they sell advertising space to suppliers and show relevant ads to shoppers as they browse through the website. This can drive more traffic and sales to your website leading to increased revenue and profitability.

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How to use Retail Media?

Retail Media is not only for online shops but can also appear in physical stores and apps etc. However, in this blog post, we will focus on how to use Retail Media on your website.

Brands and suppliers place bids on ad spaces on retailers’ websites where they can target specific keywords, product categories, or consumer behavior. The ad spaces can be placed everywhere on your website allowing you to offer unique spots for your brand suppliers.

Retail Media is a game changer for retailers because it allows you to monetize your website traffic and customer data in a way that was previously not possible. This way, retailers can generate revenue from your website beyond your regular sales.

74%	of brands have dedicated budgets for Retail Media advertising

How to get started with Retail Media?

If you want to harvest the benefits of Retail Media on your website, you need the right tools to help you give the best online shelf space to your suppliers. Here, Raptor’s Merchandising Center is the perfect solution.

Our Merchandising is an add-on tool to Website Personalization that enables you to use your recommendation modules as advertising space for Retail Media. Here you create modules with products of your choice, giving you great flexibility and still ensuring it is relevant and personalized for each visitor.

With Merchandising, you are able to boost brands and products in certain time periods and measure the impact. This way, you can have dialogues with your suppliers based on the campaigns’ performance.

Learn more about our Merchandising solution here

"The Merchandising Center is powerful tool that allows us to measure impact and have dialogues with suppliers based on their campaigns’ performance. The nudge we provide our customers through supplier brands is extremely successful. We can even prioritize high-margin products and decide how much we need to boost the products in each module."

Søren Elgum

Head of Digital Marketing & Sales, Carl Ras

See how the B2B supplier Carl Ras succeeds

What can you achieve with Retail Media?

Retail Media is a powerful tool that offers a range of benefits for both brands and retailers.

Here are 5 of the main advantages for you as a retailer:

1. Stronger relationship with brands

Retail Media can help retailers strengthen their relationships with brand partners by offering a unique advertising opportunity that potentially can increase their product offerings.

2. Measurable results

Our Merchandising provides robust reporting and analytics, allowing retailers to track the performance of their campaign ads in real-time. This data can be used to optimize campaigns, adjust targeting and provide more personalized recommendations to shoppers.’

3. New revenue streams

Retail media allows retailers to monetize their website traffic and generate new revenue streams from advertising sales. This can be a significant source of revenue for retailers, especially as e-commerce continues to grow.

4. Greater control over advertising

Retail media gives retailers greater control over the advertising content displayed on their websites. This can help ensure that ads are relevant and appropriate for their audience, and it can also help protect their brand image.

5. Automated success

Our Merchandising tool automatically tracks your performance, gives valuable insights into your visitors' preferences, and lets you know what is most successful with your buyers. And when everything is set up, it will continue automatically to spare you from a lot of manual work.

“Working with Retail Media is a beneficial way for retailers to gather a new source of revenue with a high contribution margin. When mobilizing your customer data and seeing that data as an asset can create great value for all retailers and their suppliers.”

Anders Spicker

Director of Customer Success, Raptor Services