Personalisation shows customers that you truly understand and anticipate their needs, ultimately driving conversions. But while personalisation is noble, small businesses need data to ensure they target the right individuals. Younger or lesser-known businesses get stuck here: how do you advertise to an audience that you don’t have access to, never mind providing them with personalised marketing messages? Thankfully, retail media has risen to the occasion.
Did you know that the retail media market is expected to grow by 25% annually for the next five years? It is a great way for businesses to reach customers beyond their own channels, such as direct marketing and social media platforms. Smaller, lesser-known brands receive the opportunity to grow interest in their products and generate awareness for their business.
Retail media is the technology stack that retailers use to develop their own network to advertise to customers. These “networks” are a term that refers to all of the retailer’s channels, which can be used to sell advertising space, including online and physical platforms such as websites, apps, in-store digital displays, and other customer touch points.
Why Is Retail Media Important
Retail media stands out as an advertising opportunity due to its ability to fill the gap that the cookie-less world has created. Where the use of third-party data has been prohibited, retailers that have vast access to customer data offer advertising opportunities instead of data, allowing businesses to still benefit from the targeted opportunities without sharing the data with third parties.
The shopper-centric approach joins the brands with the right consumer, targeting them accurately from the first interaction to the final purchase. The process relies on the vast amount of data large retailers like takealot.com or Checkers have accumulated over large quantities of transactions across multiple platforms or locations.
So what’s the relevance to SMEs?
When you are aiming to boost your sales in retailers, you can utilise retail media networks to help create awareness for your products. Imagine this: You are a small business that supplies biscuits to Checkers. But unless someone is walking past your product and becoming intrigued, how will they know it exists?
Retail media changes the game. It allows brands, big or small, to use the network’s technology to advertise their products and thus gain awareness. This is extra effective because the shoppers who are targeted are already using the stores where said products are sold.
Depending on the retail network you have partnered with, you can choose to use digital display advertising in-store, or display ads online or even sponsored product listings.
SMEs don’t need to be left out because this approach has made targeted advertising even more affordable than before. By leveraging shopper behaviour, the accuracy of targeting is increased – an invaluable measurement for small businesses that need to make the most of their advertising.
Benefits of Using Retail Media for SMEs
Retail media’s success has made it popular among large brands because it almost guarantees conversions. Advantages can be summed up as follows:
- Increased visibility into the complete customer journey that directly contributes to brand recognition
- Real-time campaign optimisation with closed-loop measurement that can be adjusted according to performance.
- Precision targeting for more efficient ad spend based on personalised behaviours and preferences.
- Strategic placement at critical purchase moments or places where decisions are made.
- Seamless cross-channel integration for cohesive messaging.
- Higher return on investment due to the strategic placements and precision targeting, leading to higher conversions.
There are also opportunities for new innovations that SMEs can leverage. As this trend continues, marketers and small businesses alike will seek out more enhanced technologies and ways to provide value-added services. Especially when it comes to personalising this experience.
Looking at a local example, innovations such as the Shoprite Group’s digital trolleys that are currently being tested in the northern suburbs of Cape Town, technologies such as these provide another avenue for retailers to reach customers with targeted strategies that enhance personalisation.
What to Use Retail Media For
Small businesses can use the elements from retail media, such as sponsored product listings, banner ads, and featured placements, to complete the following:
- Gain visibility in crowded categories
- Launch new products with impact
- Re-engage lapsed customers
- Promote time-sensitive deals and seasonal offers
- Affordable, flexible campaign options
Personalisation shows customers that you truly understand and anticipate their needs, ultimately driving conversions. But while personalisation is noble, small businesses need data to ensure they target the right individuals. Read More
