Retail media networks (RMNs) are platforms that allow retailers to sell advertising space to brands and suppliers on their websites, apps, and other digital channels. RMNs are becoming more popular as a way for retailers to monetize their customer data and online traffic, and for brands to reach shoppers at the point of purchase. According to a new survey from digital marketing platform LiveIntent, 73% of marketers say they intend to invest more in RMNs over the next 12 months, and 43% of the 200 marketers surveyed said they’d already invested in RMNs and found their campaigns successful.
Why RMNs Matter for Marketers
RMNs offer several benefits for marketers who want to increase their sales and customer engagement. Some of the advantages of RMNs are:
- Access to first-party data: Retailers have rich and reliable data on their customers’ behavior, preferences, and purchase history, which they can use to target ads more effectively and personalize the shopping experience. Brands can leverage this data to reach their ideal audience and optimize their campaigns.
- High-intent audience: Customers who visit retailer websites and apps are usually ready to buy or close to making a purchase decision. Brands can capture their attention and influence their choices by showing relevant and timely ads on RMNs.
- Brand safety: Retailers have control over the quality and content of the ads that appear on their platforms, ensuring that they are consistent with their brand image and values. Brands can avoid the risk of appearing next to inappropriate or harmful content that could damage their reputation.
- Measurement and attribution: Retailers can provide brands with accurate and transparent metrics on the performance and impact of their ads on RMNs, such as impressions, clicks, conversions, and return on ad spend (ROAS). Brands can also track the customer journey across different touchpoints and channels, and attribute sales to their RMN campaigns.
How Marketers Are Using RMNs in 2023
The survey from LiveIntent reveals some interesting insights into how marketers are using RMNs in 2023. Some of the key findings are:
- Video is the most preferred channel: 64% of marketers said they want more video inventory on RMNs, followed by connected TV/streaming services (57%), off-site media (56%), and email-based newsletters, promotions, and receipts (54%).
- Content quality and frequency are top priorities: 55% of marketers said they create more content and post more frequently on RMNs, while 53% said they focus on improving the quality of their content. Additionally, 37% said they prioritize research-driven content, and 36% said they improve their technical SEO.
- RMNs are more effective than other forms of digital marketing: 63% of marketers believe that RMNs are more effective than other forms of digital marketing, such as social media, search engine marketing, display advertising, and email marketing.
- RMNs face some challenges: The main challenges that marketers face when using RMNs are lack of awareness among brands and retailers (52%), difficulties in measuring campaign effectiveness (44%), lack of standardization across different platforms (38%), and limited inventory availability (36%).
What’s Next for RMNs in 2023
The survey also reveals some trends and predictions for the future of RMNs in 2023. Some of the highlights are:
- RMN spending will increase: 69% of marketers plan to increase their RMN budgets in 2023, with 28% expecting a medium increase of 11%-25%, and 25% expecting a slight increase of up to 10%. Only 8% plan to decrease their RMN spending, while 23% plan to keep it the same.
- RMN adoption will grow: 84% of marketers anticipate increased RMN adoption in the next 12 months, with 40% expecting a significant increase, and 44% expecting a moderate increase. Only 4% expect a decrease in RMN adoption, while 12% expect no change.
- RMN education will improve: 60% of marketers have a general understanding of RMNs, while 40% have a detailed understanding. Moreover, 54% of marketers said they saw significant improvement in sales or customer engagement from their RMN campaigns.
Retail media networks are a growing trend in the digital marketing landscape in 2023. They offer a win-win situation for both retailers and brands, who can leverage each other’s strengths and assets to create value for themselves and their customers. As more marketers recognize the potential and benefits of RMNs, we can expect to see more innovation and investment in this space.