Retail Media Networks: A Winning Strategy for Brands Big and Small

Retail Media Networks (RMNs) have emerged as game changers in today’s fast-paced market, serving as platforms for retailers to monetize their digital platforms and customer data by offering targeted advertising opportunities to their suppliers. Powerhouse brands like Amazon and Walmart have proven this statistic, with the former attributing a colossal 68% of its global profits to RMNs, and the latter, a solid 12%, according to a report by Boston Consulting Group (BCG).

But are RMNs only within reach for the retail giants? A common misconception suggests that unleashing the potential of RMNs is only viable for the major players amassing an army of dedicated customers or boasting a vast network of brick-and-mortar stores. Nevertheless, the main ingredient in concocting a successful RMN strategy boils down to the fundamental principle of marketing – connection with the customer. That’s precisely what retail giants Home Depot and Kroger have masterfully executed through leveraging RMNs to bolster their profits.

Save Mart Companies (TSMC), though comparably a smaller player in the market, has successfully weaved its story around RMNs. The company, with its strategic number of stores and market areas, became a phoenix under new leadership, demonstrating that size doesn’t always matter in the retail world. The hiring of Tamara Pattison, a pivotal figure in the transformation, catapulted the adoption and execution of TSMC’s vision into a success.

The epoch of mobile technology cannot be overlooked when developing a successful RMN strategy. The partnership between TSMC and Swiftly, an emergent company providing RMN technology, amplified their digital connectivity with shoppers. As noted by Sean Turner, Swiftly’s Chief Technology Officer, the establishment of a robust digital connection with consumers is cardinal to the success of a solid RMN strategy.

While shopper engagement can assume variegated patterns, a unique feature of modern consumption is the quick, impulsive engagement via mobile versus more deliberate and planned engagement through desktop devices. This trajectory underscored the importance of crafting unique and engaging experiences across both platforms, encouraging brands to think on their feet and align with the rapidly evolving consumer behavior.

The presented engagement figures served as proof to potential suppliers that investing in an RMN could be a strategic maneuver. In the case of TSMC, their diverse brands catering to distinctive demographics made their RMN a magnet for suppliers, painting a vivid picture of the targeted market they would be able to reach.

In conclusion, the role of RMNs in uplifting both smaller and larger retailers’ profit margins is undeniable. However, the secret ingredient to an efficacious RMN strategy is not size, but understanding and efficiently leveraging customer engagement across all platforms. TSMC’s story serves as an apt example of this, demonstrating that nobody is too small to dream bigger and execute smarter in the realm of retail marketing.