Top 3 Retail Media Trends in 2022
Retail media revenues have soared in the last decade, but this year the growth of revenues will reach $41.37 billion, which is $10 billion dollars more than last year. In 2023, the industry will surpass $50 billion and account for 1 in 5 digital ad dollars. As it makes sense for retailers to go for it, we're seeing a greater number of wholesalers and vendors launch media packages to market to brands. Many substantial retailers already manage a retail media sector as part of their business strategy. And there are many different options open to advertisers. These include major box retailers such as Walmart, Macy's, Target, and Home Depot.
In this article, we will consider three trends that will change the retail media industry in 2022. But before we get to that, let’s get our basics sorted first.
What is Retail Media?
Product advertisements on a website, application, or other online or digital marketing platform are commonly referred to as retail media. This makes advertisements available close to the point of sale, which makes it more likely for customers to convert. Your company's Amazon page can feature ads if someone enters a relevant term into the search bar on the retail giant's website. Or people might view products that are related to a specific buying category while browsing a store's website. This is the equivalent of point-of-sale advertising. This allows brands to capture consumers at pivotal moments in the entire shopping experience. Also, this helps brands access those digital spaces that were previously off-limits.
Perks of Retail Media for Brands
Through retail media, all types of eCommerce stakeholders will benefit. For online sellers, it introduces a new revenue stream that is significant considering that CPG profit margins have been decreasing. For the end-customer, it means consistent prices. Retailers operating under a media network model benefit from lower prices that are predictable over time. Retail media is also changing the way shoppers and companies interact.
Because of their fundamental advantages, opting for retail media will have a huge impact in any brand's business strategy. Some of them include:
1. Detailed Data
Retail media networks gather first-party data on a buyer’s behavior. Thus, this is more reliable. Since the web browsers are phasing out cookies, it's futuristic as well.
2. High Level of Personalization
In advertising, media programs allow you to tailor your message to increase sales, improve return on investment, and provide a pleasurable customer experience. But you can also achieve this by personalizing the offers according to customer segments. This makes it easy for brands to connect with new clients or introduce present customers to new products.
3. Well-Timed Ads
With retail media, you can market your brand to consumers who are in shopping-mode. They're browsing a retail website to do some research or purchase a product. So this is the perfect time to let your consumers know about your brand. Conversions are easy to acquire with one click.
4. Better Tracking of Conversions
Because sales and ads take place on the same platform, you have the possibility to study the effect that your ads have on your sales. With this you can gain clear inputs on ROI and invest in better strategies.
Now, we will discuss the latest trends that are creating a buzz in the retail sector:
1. A Crucial Channel for Brand Advertising
As third-party cookies lose importance, brands are fueling their efforts with retail media to have a greater reach. Through retail media, advertisers can directly connect and gain insight into their advertisements' performance. As a result of the projected high profit margin, 2022 will be a year of explosive growth for online retailers of retail media. However, the retailers must be able to manage their media across a broad spectrum of brands seamlessly.
2. Use of Video
Another trend is the rise in retail media use of video in 2022 is to come. After research, it was found that retail video ads achieve a 7.5 times higher click through rate than static ads. Video, furthermore, promotes storytelling that leads to prospective customers understanding how our brands are made and what our products do.
3. Machine Learning
Machine learning is implemented through the entire retail media process, and it will become even more important to brands as AI and machine learning continue to evolve. Machine learning can be used to track seasonal consumer patterns and explain why certain campaign strategies are successful. In 2022, machine learning will advance. And brands will continue to grow their usage of customer data.
The experience of doing business is changing almost overnight with new technologies. This article tells you how the world of retail media is so advanced today. Thus, it is challenging to keep track of all new developments. But with FastEdge, it becomes a little easier. We provide AI-driven solutions to DOOH challenges. We can help you make your business data-driven and customer-oriented. FastEdge LLC is an AI technology development firm dedicated to using technology to make business decisions more accurate, timely, and profitable. Find out more about us at FastEdge.ai .