Although relatively new, Co-op Media Network (CMN) stands out in the retail media landscape for not only seeking to leverage its unique cooperative structure and strong community ties of its parent company but also by focusing on the convenience grocery niche.
Created in late 2023 in partnership with its ad agency Threefold – part of SMG – CMN taps into Co-op’s specific demographic of a network of frequently-shopped, smaller stores to drive increased opportunities for advertising campaigns.
Convenience shopping and supermarket shopping are different purchasing occasions and the impulsive nature of convenience shopping missions creates untapped occasions for brands to grow their sales. CMN believes it can help brands see greater sales and brand-building benefits by executing media with them.
The other advantage that CMN brings to the market is the strong community that exists around the store’s co-operative structure. This has created a customer base that strongly trusts the brand, so advertisers using its RMN are likely to bask in the reflection of this halo of trustworthiness.
Co-op also has a strong reputation for ethical behaviour and is committed to total transparency. This not only means that brands using the site must these criteria but that data will be carefully protected and measurements clearly defined.
Since Co-op’s community approach sees the company champion local brands, CMN can help smaller brands garner greater advertising reach locally and, if they wish to expand, further afield.
While Co-op has carved a niche for itself in retail media advertising around a convenience store audience, there are challenges. The community-focused approach might limit CMN’s reach compared to larger retail media networks.
Likewise, the company’s ethical approach sees balancing effective targeting with strict data privacy regulations needing continuous adaptation of CMN’s data practices.
Despite these challenges, CMN stands out for its commitment to ethical advertising and community engagement. By leveraging Co-op’s strong brand identity and focusing on building trust with both consumers and brands,it can carve out a sustainable niche within the evolving retail media landscape.
What it offers
Co-op Media Network (CMN) offers a range of services, including:
• In-store advertising – Strategic placement of digital signage, shelf-edge displays and product sampling opportunities within Co-op stores.
• Digital advertising – Targeted display and video ads across Co-op’s website and app, as well as across all Co-op product categories.
• Community-focused content – Going beyond traditional advertising by creating engaging content such as recipes, local news and sustainability initiatives that resonate with Co-op’s community-minded customers, while integrating product endorsements.
• Data-driven targeting (with a twist) – CMN uses customer data across purchase history and loyalty programme information for targeted advertising, yet does so with a focus on user consent and ethical data practices.
This profile is one of nine in the RetailX Retail Media 2024 report. It also looks at UK retailers such as Tesco, Co-op, Walmart and Amazon Advertising.
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.
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