ANALYSIS Could ‘content media networks’ help smaller retailers play in crowded RMN space?

InternetRetailing

Retail media networks, while increasingly seen as a much-needed extra revenue stream for retailers are not for everyone. 

Amazon and Walmart’s retail media networks will continue to take 84% of available ad spend in 2025, squeezing the long tail of smaller and niche retailers that run RMNs as they battle it out for a decreasing slice of the pie. However, could there be another, related, new revenue stream for these smaller players? 

Analysts at eMarketer are predicting that despite the amount spent on retail media growing fivefold since 2019, there are now so many networks fighting for ads that the smaller players and new entrants that lack the digital footprint of giants like Amazon, Walmart, Etsy, Tesco and more are going to be squeezed ever-tighter. 

Admittedly, Amazon Ads is trying to address this imbalance with the launch of its Amazon Retail Ads service, which will offer retailers using AWS the ability to take brand ads from Amazon Ads enormous pot of brand and retail ads and create their own targeted RMNs, but still there is a long way to go to help all play in retail media.

But there are ways that these smaller players can combat this, says the eMarketer study. “Most small and midsize retailers simply lack the digital footprint necessary to generate meaningful revenues solely by monetising their owned and operated digital channels,” says the report. “Many are branching into arenas that enable a more scaled reach, including off-site digital channels with the potential to tap into budgets typically reserved for upper-funnel awareness. But success off-site or in store requires a tough-to-stomach investment to fund capabilities, expertise, and technology.”

Retail content networks?

However, smaller brands are increasingly looking at how to leverage content and product placement, rather than just looking for advertising opportunities. One the one hand there is the opportunity for brands and retailers to advertise on streamed, CTV services such as Amazon Prime and, increasingly, Netflix. But what if they were to make their own entertainment content?

According to eMarketer, a growing number of brands are launching their own production companies to create video content and ‘brand-adjacent’ content for product placement around these streaming – and traditional media – services. But what if smaller retailer look to leverage this form of content on their sites as a means of differentiating themselves from the big boys?

The games’ afoot

Advertising as entertainment is nothing new, but entertainment as advertising is something ripe for exploration. 

Already in the US a number of brands have toyed with entertainment content around their loyalty schemes. Ulta Beauty, for instance, capitalised on the recent word-game trend with a new loyalty game called GlamXplora that resembles The New York Times’ Wordle, part of a pilot that tested dozens of different loyalty games. 

Burger King released two games in 2024 – Balloon Burst and The Cloud Float Game –  to promote a new product and its 70th anniversary. The results are promising: Gamification is driving engagement for guests participating in these efforts, Preston Nix, director of loyalty and customer relationship management at Burger King told Marketing Dive in July.

“They start to come more frequently and they start to spend more, driving that stickiness of our brand,” Nix said. “We’re in a hyper competitive industry and we’ve seen [gamification] drive up that positive sentiment towards the brand.”

Taking things further, Chick-fil-A announced an upcoming Play app, which will feature a slew of video, audio, and gaming content geared toward families with young children. An animated series on the app will feature Chick-fil-A’s cow mascot.

Meanwhile, some notable global brands and retailers have even launched their own production companies to cater to this move. Starbucks and LVMH joined a slew of other brands in 2024 by launching production companies that will fund premium video content. In some instances, such as LVMH Design & Creation, the goal is to create content that tells the brand’s story. Starbucks Studios, meanwhile, is producing original content to better align the brand with the creative arts.

“Starbucks Studios advances our mission to nurture the limitless possibilities of human connection,” says Christy Cain, vice president, brand and partnerships marketing at the coffee company. “We’re honoured to have the opportunity to shine a light on the stories and people who inspire us, from young, emerging artists to innovators, changemakers and others who are making a positive impact on the world.”

Starbucks has teamed up with Sugar23, a multimedia production and talent management organisation with a goal to move culture through entertainment. Together, Starbucks Studios and Sugar23 aims to “amplify stories with the power to bring people together and spark moments of delight”.

The first project, an original feature documentary called “Madwoman’s Game,” brings together Keanu Reeves and Carla Berkowitz as the executive producers with Zach Zamboni directing. Starbucks Studios joins producers Sugar23 and Ultra Boom Media in creating the film, which is now in production and expected to be released in 2025. 

“Storytelling is deeply ingrained in what Starbucks does, and Starbucks Studios is a natural extension of these efforts. Together, we will harness the power of storytelling to foster connections, inspire change, and build a stronger sense of community,” says Michael Sugar, founder and CEO of Sugar23. “We’re excited to work alongside the incredible Starbucks team and invite all our collaborators in Hollywood and beyond to join us in creating premium entertainment.”

The shift to content media is underway

This move towards a more ‘content media’ marketing model is already underway and generating revenues. PRNEWS.IO, a leading platform connecting brands with publications to place branded content in a cost-effective and predictable way, recorded an important milestone by paying $3.3 million to publishers worldwide throughout the year. The amount paid highlights the platform’s growing impact in helping small and mid-sized media outlets diversify their revenue streams and reinforces branded content as an effective alternative to traditional advertising formats.

Between 2019 and 2024, total payouts to publishers through the platform exceeded $9 million, reflecting the increasing popularity of sponsored content as a win-win solution for both brands and publishers.

Compared to previous years, 2024 saw a significant increase in revenue generated through the platform. The growth, which reached 40%, reflects a change in consumer behaviours and the evolving needs of brands and publishers. The United States, India, the United Kingdom, Spain and Ukraine led the list of countries receiving the highest payouts through PRNEWS.IO. This result demonstrates a global initiative by companies to adopt branded content in their strategies to win over audiences in different markets, increasing engagement and exploring new sources of revenue efficiently.

“While traditional formats like banners and pop-ups are showing signs of saturation, sponsored content is gaining momentum for its more organic and engaging approach,” says PRNEWS.IO’s founder, Alexander Storozhuk. “These formats offer readers a less disruptive experience, seamlessly blending advertising into editorial content.” Rather than being interrupted by intrusive banners, consumers encounter articles, videos and other formats that provide added value without overwhelming them with ads.

Content-ment

This growing shift into creating content that goes beyond advertising into something more entertaining has the potential to shift marketing for brands and, played right, could open up new ways to leverage retail media networks large and small.

With consumers seemingly wanting to simultaneously receive ads rather than pay for services while not wanting to see more ads, this could be the perfect fillip and the start of something beautiful for marketing, entertainment and retail media.

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