Retail media networks (RMNs) offer retailers a whole new revenue stream, as well as elevating the ecommerce proposition to being one focused on product and personalisation that’s targeted at the right user and the right moment. But how do you get there and how do you keep refining your offering to keep pace with the rapidly evolving retail media landscape and the changing demands of consumers?
FIVE STEPS TO MARKET
RMN nirvana can be achieved by following key five steps, from laying the ground work if you’re new to retail media, through to processes of continuous optimisation and expansion, depending on where you are on the retail media roll-out timeline.
Laying the foundations
The process starts with clearly defining the goals for the RMN. Are you aiming to increase revenue, drive brand awareness for specific products or improve customer engagement? Having clear objectives will guide strategy. Also consider what inventory you have, how it can be priced and sold and how it may develop.
This has to be mapped to your existing data infrastructure to assess what data you have – not just around the first-party consumer factors such as purchase history, demographics and browsing behaviour but also how much of it you have. Do you have enough inventory being looked at by enough consumers with enough data known about them to make this work?
Within this, you also have consider what additional data you may need to collect. This will not only let you know if this is going to work for you but will also help shape the tech you’ll need. It is also vital to look at what tech platforms you already have in place, where data is stored and in what format.
To make this work, you must also assemble the right people and create a dedicated retail media team. Identify individuals with expertise in data analysis, campaign management, advertising sales and, potentially, content creation.
Data is king
Data underpins a retail media network and, having assessed what data you have and what you need, it is then vital to develop a comprehensive data strategy for collecting and managing customer data. If you don’t already have one, invest in a customer data platform (CDP) to centralise and organise data for effective use within the RMN.
With this in place, segmenting customer data based on demographics, purchase history and browsing behaviour takes precedence. This can then be analysed to understand the audience and tailor advertising campaigns aimed at them for maximum impact.
Remember to ensure that data collection practices comply with all relevant data privacy regulations. Prioritise user consent and transparency regarding data usage.
Build the infrastructure
With the foundations laid across your business objectives and with your data and team primed for action, the important stage of selecting the right retail media technology platform can get underway. This will be the bedrock of your retail media offering and needs careful consideration. Choose a retail media tech platform that aligns with your needs and the business objectives created in phase one. Consider factors such as scalability, ad serving capabilities, data management tools and integration with your existing systems.
Next, identify the different advertising placements you can offer within your digital properties (website, app, email, digital instore, out of home and so on). Also, look at the inventory that sits within this, such as banner ads, sponsored product listings, video ads and native advertising formats. Where will these sit, who will see them and how often will they be remarketed? At this juncture, it is also important to develop and implement the right campaign management tools. This often involves investing in tools that allow brands to create, manage and optimise their campaigns within your RMN for themselves. It can include self-service interfaces and real-time bidding functionalities, as well as offering comprehensive reporting dashboards.
Go-to-market strategy
Having understood your inventory, your consumer data and created an offering, it then needs to be taken to market. The first step is to identify the types of brands that would benefit from advertising within your RMN. Consider brands that complement your product offerings and target similar customer segments. Also, look at the brands and products that your customers are likely to want to buy based on their search, cart abandonment and purchase history on your site. This will inform who is most likely to want to offer their products to your customers, as well as letting you create an offering that will appeal to those customers and add value to their interactions with your site.
Pricing your offering based on this is also crucial. Establish a pricing structure for advertising placements within your RMN by considering the options such as cost-per-click (CPC), cost-per-thousand impressions (CPM) or programmatic buying models that may appeal to the brands that you are targeting.
It is expedient to develop a strong outreach strategy to attract brands to your RMN. Partner with industry associations and attend relevant conferences. Develop case studies showcasing the success of your existing campaigns.
Continuous optimisation
A retail media network’s work is never done – it requires continuous optimisation around changes in campaigns, data and technology developments. Retailers must track the performance of advertising campaigns within their RMN and analyse metrics such as click-through rates (CTR), conversion rates and return on ad spend (ROAS) to measure effectiveness.
The data insights gained from ongoing sales and consumer interactions, along with the data generated from the actions of the retail media network itself, can also be used to refine targeting strategies, optimise ad creative and adjust pricing models for maximum impact.
This How to guide is featured in the RetailX Retail Media 2024 report.
Drawing on ConsumerX research, third party data and value-chain testimonials, the report explains the concept of retail media networks, their evolution, how to leverage them from any point within the value-chain and where they go next.
Stay informed
Our editor carefully curates a dedicated Retail Media newsletter on a bi-weekly basis, filled with up-to-date news, analysis and research, click here to subscribe to the FREE newsletter sent straight to your inbox.
You are in: Home » Retail Media » How to build a retail media network
How to build a retail media network
Paul Skeldon
Retail media networks (RMNs) offer retailers a whole new revenue stream, as well as elevating the ecommerce proposition to being one focused on product and personalisation that’s targeted at the right user and the right moment. But how do you get there and how do you keep refining your offering to keep pace with the rapidly evolving retail media landscape and the changing demands of consumers?
FIVE STEPS TO MARKET
RMN nirvana can be achieved by following key five steps, from laying the ground work if you’re new to retail media, through to processes of continuous optimisation and expansion, depending on where you are on the retail media roll-out timeline.
Laying the foundations
The process starts with clearly defining the goals for the RMN. Are you aiming to increase revenue, drive brand awareness for specific products or improve customer engagement? Having clear objectives will guide strategy. Also consider what inventory you have, how it can be priced and sold and how it may develop.
This has to be mapped to your existing data infrastructure to assess what data you have – not just around the first-party consumer factors such as purchase history, demographics and browsing behaviour but also how much of it you have. Do you have enough inventory being looked at by enough consumers with enough data known about them to make this work?
Within this, you also have consider what additional data you may need to collect. This will not only let you know if this is going to work for you but will also help shape the tech you’ll need. It is also vital to look at what tech platforms you already have in place, where data is stored and in what format.
To make this work, you must also assemble the right people and create a dedicated retail media team. Identify individuals with expertise in data analysis, campaign management, advertising sales and, potentially, content creation.
Data is king
Data underpins a retail media network and, having assessed what data you have and what you need, it is then vital to develop a comprehensive data strategy for collecting and managing customer data. If you don’t already have one, invest in a customer data platform (CDP) to centralise and organise data for effective use within the RMN.
With this in place, segmenting customer data based on demographics, purchase history and browsing behaviour takes precedence. This can then be analysed to understand the audience and tailor advertising campaigns aimed at them for maximum impact.
Remember to ensure that data collection practices comply with all relevant data privacy regulations. Prioritise user consent and transparency regarding data usage.
Build the infrastructure
With the foundations laid across your business objectives and with your data and team primed for action, the important stage of selecting the right retail media technology platform can get underway. This will be the bedrock of your retail media offering and needs careful consideration. Choose a retail media tech platform that aligns with your needs and the business objectives created in phase one. Consider factors such as scalability, ad serving capabilities, data management tools and integration with your existing systems.
Next, identify the different advertising placements you can offer within your digital properties (website, app, email, digital instore, out of home and so on). Also, look at the inventory that sits within this, such as banner ads, sponsored product listings, video ads and native advertising formats. Where will these sit, who will see them and how often will they be remarketed? At this juncture, it is also important to develop and implement the right campaign management tools. This often involves investing in tools that allow brands to create, manage and optimise their campaigns within your RMN for themselves. It can include self-service interfaces and real-time bidding functionalities, as well as offering comprehensive reporting dashboards.
Go-to-market strategy
Having understood your inventory, your consumer data and created an offering, it then needs to be taken to market. The first step is to identify the types of brands that would benefit from advertising within your RMN. Consider brands that complement your product offerings and target similar customer segments. Also, look at the brands and products that your customers are likely to want to buy based on their search, cart abandonment and purchase history on your site. This will inform who is most likely to want to offer their products to your customers, as well as letting you create an offering that will appeal to those customers and add value to their interactions with your site.
Pricing your offering based on this is also crucial. Establish a pricing structure for advertising placements within your RMN by considering the options such as cost-per-click (CPC), cost-per-thousand impressions (CPM) or programmatic buying models that may appeal to the brands that you are targeting.
It is expedient to develop a strong outreach strategy to attract brands to your RMN. Partner with industry associations and attend relevant conferences. Develop case studies showcasing the success of your existing campaigns.
Continuous optimisation
A retail media network’s work is never done – it requires continuous optimisation around changes in campaigns, data and technology developments. Retailers must track the performance of advertising campaigns within their RMN and analyse metrics such as click-through rates (CTR), conversion rates and return on ad spend (ROAS) to measure effectiveness.
The data insights gained from ongoing sales and consumer interactions, along with the data generated from the actions of the retail media network itself, can also be used to refine targeting strategies, optimise ad creative and adjust pricing models for maximum impact.
This How to guide is featured in the RetailX Retail Media 2024 report.
Drawing on ConsumerX research, third party data and value-chain testimonials, the report explains the concept of retail media networks, their evolution, how to leverage them from any point within the value-chain and where they go next.
Stay informed
Our editor carefully curates a dedicated Retail Media newsletter on a bi-weekly basis, filled with up-to-date news, analysis and research, click here to subscribe to the FREE newsletter sent straight to your inbox.
Read More
You may also like
Register for Newsletter
Receive 3 newsletters per week
Gain access to all Top500 research
Personalise your experience on IR.net