In my last article I outlined why Retail Media was growing so fast; and why everyone in consumer goods needs to be thinking about it now. Even if it is tiny in your market today, its growth is inevitable. And when it comes – you really need to be ready. So what does being ready actually mean?
Why Be Ready for Retail Media?
So why the big deal? Retail Media is just another trend right? Wrong! Retail Media is going to change consumer goods marketing and sales and retail completely. Why? There are a number of key reasons, but they boil down to this:
1. Retail Media Delivers Where It Matters
We know that the point of purchase is important. We know that a lot of brand love can dissipate in the last mile. So winning there is critical.
2. More Than Just Shopper Marketing
Retail Media is more than just shopper marketing. It is the holy grail of marketing. Not just shopper marketing, but marketing. In theory (yes, we’ll come to the ‘yes, but’ soon enough!). Through Retail Media Networks (RMNs) it is possible to connect more and more media touchpoints through to a sales touchpoint – delivering real (and real-time – in theory) attribution of more and more of your media. Attribution. Return On Investment. Now that is something that any marketer should get excited about.
3. The Reality Gap
I promised you a miracle (yes I’m channelling/showing my age with Simple Minds). You know that ‘yes, but’ I mentioned before? Here it is. Because while Retail Media promises a lot, in most cases it isn’t quite delivering that. The data sets are patchy in many cases. The data isn’t flexible. The buying mixes aren’t flexible either. You can’t buy based on shopper missions. So while Retail Media has the potential to be a brilliant marketing vehicle, in most cases there is a significant gap between the promise and the reality.
4. It’s an Opportunity and a Tax
Retail Media is a tax as well as an opportunity. Yes – this wonderful marketing tool just happens to be in the hands of retailers. Large ones. Who just happen to be your largest customers too. Yeah – it really isn’t fair is it? But as my Mum used to tell me, ‘life isn’t fair’. So we have to pay attention. Retailers are customers. And now they are selling us media. But they are our customers. That means, well, to put it bluntly, we have to be a little careful with how we handle it.
5. Retail Media Will Take More of Your Budget
Retail Media will take more of your marketing budget. Simple, really. Retailers have done it before (pulling marketing money into retail investments) and they will do it again. Already money is sliding from other media into Retail Media, and it will continue. Why? See points 1,2 and 4 above. Speaking with brands around the world, they simultaneously moan about the ROI being poor and continue to increase their spend on Retail Media. Why? See point 4 above. So like it or not, Retail Media is going to increase its share of your spend. So what do we need to do to get it right?
The Four Keys to Retail Media Success
Of course, there is more to it than these four things. And if you’d like me to share more about how you actually make this happen in your business, get in touch and I’ll happily share a case study or two. But at its heart, there are four key concepts that must be grasped by marketing and sales teams if they are to capitalise on the opportunity, and avoid the pitfalls that Retail Media brings.
Key 1: Retail Media is Not Just the Bottom of the Funnel
You’d think this was obvious, but alas no. Research suggests that only 12% of marketing leaders believe retail media can support long term brand goals. I keep meeting marketers and sales leaders who see Retail Media as focused on conversion. But this isn’t true. Research shows that Retail Media can deliver all the way up the funnel: it can change brand perceptions and build brand equity. As long as it is used well.
And of course it has to. If more of your total media spend is going there, then if you only use it for conversion, you will, by default, spend less on brand building. And that isn’t good. The key is to use Retail Media effectively
Key 2: Media Must Be Omnichannel
Note that the title of this section begins with Media, not Retail Media. Retail Media success will only come when it is seen as part of a true Omnichannel media approach. It could play a role at any point in the journey to purchase/purchase journey/cycle/helix/whatever – so it should be planned in that way.
Key 3: Consumers and Shoppers Are Different
I know I’ve covered this before. Here. Here. And Here. But still, the evidence I see presented to me in stores suggests that many people still haven’t got the memo. Shoppers and consumers are different. And if you aren’t sure why, or whether your team has really got this – we’ve got a training that can help you.
Key 4: Retail Media Is Still Retail Investment
All this talk of Retail Media being a brilliant media tool (or at least having the potential to be) is great, but it’s also retail. It is an investment in a retailer, and that has implications. Retail Media needs to be part of our retail engagement strategy, part of the Joint Business Planning process. Yes its media first, but its still retail (maybe they should call it media@retail?)
Final Thoughts
So those are the four keys to success. And the implications are profound. When we work with clients, this challenges the way they manage insight, media, budgets. It questions organisational structures and requires the need to consider new KPIs and new ways of measuring activities and people. And it requires new capabilities across the team. Its complex, but we know how to do it. If you’d like to know more about how we help: from short seminars to larger training events of change support, get in touch now and I’ll share a little more detail on how some of our clients are rising to the Retail Media challenge. Wherever you are in the world, wherever you are on your journey, get in touch and let’s check in and see where you are, and what steps might be appropriate for your situation right now. No obligation, a complimentary consultation. We’re here to help.