The holiday season is rapidly approaching, which means shoppers are beginning to unwrap their lists and will soon be on the hunt for the perfect gifts and best deals. It’s forecasted that consumers will spend an average of $1,430 during their holiday shopping, posing retailers with a valuable opportunity to boost sales and elevate brand visibility.
In the evolving digital landscape, brands must expand their advertising strategies beyond traditional channels like programmatic to stand out to their shoppers. As consumer behavior continues to evolve, it’s clear that innovation is key. For instance, 17% of shoppers have already embraced generative AI as a source of inspiration for their holiday purchases. It’s also predicted to generate $194B in global online holiday shopping spending. As a result of these trends, brands must continue to adapt and explore new advertising approaches to connect with customers effectively.
As part of the evolving ecommerce retail space, retailers are also leaning into the rise of retail media networks (RMNs) — a channel that’s expected to reach $125.7B by the end of 2023. RMNs are a digital advertising platform created and operated by a retailer that allows advertisers to promote their products or services directly within the retailer’s shopping environments. It provides retailers with advantages ranging from increased sales, measurable ROI, and the ability to target customers with valuable first-party data.
Let’s explore some of the benefits in leveraging RMNs and how finding the right technology to complement them can make bottom lines jingle during the holidays:
Leveraging Retail Media Networks for Brand Success
Here are three ways that RMNs can help brands level up:
- Amplified brand visibility: RMNs provide brands with a powerful tool to connect with a highly engaged audience. Placing advertisements on a retailer’s website, mobile app, or social media platforms enables brands to tap into a broader pool of potential customers.
- Tailored ads for impact: Leveraging first-party data, advertisers craft tailored advertisements that resonate with individual shoppers, ensuring brands can deliver the right message to the right audience at precisely the right moment. The strategic use of machine learning further enhances ad performance, guaranteeing the best return on investment for brands.
- Maximizing first-party data: Empowering brands to gather and analyze first-party customer data, RMNs enable the creation of more personalized shopping experiences, enhanced customer retention, and increased sales. Through the consolidation and thorough analysis of data from various sources, brands gain a comprehensive perspective of their customers, leading to more informed decisions regarding their marketing campaigns.
Unlocking additional revenue powered by machine learning
It’s no secret that there’s value in personalizing the customer experience on the path to purchase, however, many retailers often overlook applying this relevancy throughout the transaction and post-purchase moment. As soon as a customer lands on the page to make a payment, the network’s influence starts to wane, causing online retailers to miss out on additional earnings, sometimes even millions of dollars. To address this, retailers can leverage AI technology like Rokt to bolster their retail media strategies.
Rokt’s AI and advanced machine learning technology enhances RMNs by delivering personalized, non-endemic offers to customers across the transaction moment. By tapping into areas like the confirmation page, retailers can deliver a full-funnel experience and unlock additional revenue with no additional upfront costs or heavy lift. The results can drive up to $2.5M in profit per 10M transactions while meeting customer expectations and increasing customer lifetime value.
By unleashing technology that enhances RMNs, retailers can reach their ideal customers with precision, deliver relevant offers at critical points of the consumer journey, and drive incremental revenue through the power of AI.