What are retail media networks? Key benefits and real-world examples

In today’s digital world, the way we shop is constantly evolving, and so are the ways brands reach consumers. Enter stage right: retail media networks – data-driven advertising spaces within online shopping platforms that help brands reach consumers at the point of purchase. 

But what exactly are retail media networks, and why are they becoming such a crucial tool for advertisers? In this blog, we’ll answer key questions like:

• What are retail media networks?
• What’s retail media advertising?
• What are endemic retail media ads?
• What are non-endemic retail media ads?
• Why are retail media networks important?
• How do they work?
• What are the leading retail media networks?
• What are the benefits of retail media networks?
• How can GWI data help with retail media ads?
• What are the latest retail media network trends?

Whether you’re a brand, a retailer, or simply curious about the evolving world of digital marketing, this blog will help you understand why retail media networks are more than just a buzzword — they’re a game-changer in modern advertising. Let’s get into it.

What are retail media networks?

Retail media networks (RMNs) are advertising platforms that leverage the reach and data of retail companies to connect brands with consumers. Basically, they’re ad spaces that exist on retail websites and apps, providing a direct channel for other companies to target specific audiences with buying intent.

Marketers who advertise on RMNs can access the wealth of first-party data retailers get from their online customers, including browsing behavior, purchase history, and demographics – and this helps them create highly targeted digital ad campaigns. Personalized ad experiences are more likely to resonate with consumers and drive conversions.

What’s retail media advertising?

Retail media advertising involves buying ad space on retail media networks to reach consumers directly, based on their shopping behavior. In today’s media landscape, retail media advertising has become essential to many brands’ marketing strategies, as 23% of consumers say they find new brands and products via website ads. 

By advertising on platforms where consumers are already shopping, brands can seamlessly integrate their messages into the online shopping experience, making their ads more relevant and engaging.

What are endemic retail media ads?

Endemic retail media advertising is directly relevant to the products or services offered by the network owner (the retailer). Essentially, it’s when a brand advertises in a retail environment where its products are already being sold. 

For example, if a consumer’s browsing a home goods website, they might see ads for decor and soft furnishings from specific brands available on that site. 

By making sure ads are highly relevant to the shopper’s immediate needs and interests, marketers boost the likelihood of capturing their attention and driving conversions.

Endemic retail media advertising benefits both retailers and brands, enhancing the shopping experience by giving shoppers useful, contextually relevant information and suggestions. For brands, it offers a highly targeted way to reach potential customers at the point of purchase, when they’re most likely to be open to product recommendations.

What are non-endemic retail media ads?

As you’ve probably guessed – non-endemic retail media advertising promotes products or services that aren’t directly related to the retailer’s core offerings. Even if these products aren’t sold by the retailer, non-endemic retail media ads should still connect with the interests of shoppers on those retail websites. For instance, imagine a sports equipment brand placing an ad on a fashion retailer’s website. Consumers browsing for clothes might still be interested in active gear, right? 

As long as it’s relevant to the buying journey, this type of advertising is still a win-win: it opens up fresh audience segments for marketers to target, and spreads brand awareness far beyond their typical reach. For retailers, it’s a chance to bring in extra revenue without disrupting the shopping flow — ads can be placed strategically to blend in with the site’s look and feel, so they’re relevant without being pushy.

First-party data is still essential for crafting targeted ads that align with a shopper’s interests, but third-party data also plays a big role here, helping brands predict what else might catch the shopper’s eye for their next purchase. It’s all about finding that perfect balance – adding value without interrupting the browsing experience.

Why are retail media networks important?

Retail media networks have become a big player in the ads game, partly due to increasing reliance on ecommerce platforms. The percentage of Americans who use retail/ecommerce sites weekly rose from 45% in 2020 to 52% in 2023. This shift highlights the growing opportunity for brands to engage with shoppers in an online retail environment.

Using reliable data to create highly targeted advertising campaigns has been a game-changer for many brands. Being able to deliver personalized ads that are more likely to resonate with individual shoppers has really leveled up the effectiveness of their marketing efforts, allowing them to bring home more bacon.

And it isn’t just brands who are benefiting. Not only do retailers boost sales on their own digital platforms, they also open up a new revenue stream by monetizing them.

How do they work?

Here’s a breakdown of how it all comes together:

1. Data collection and use: 

Retailers gather heaps of data from their customers, but by validating it with retail media insights from trusted third-party sources, they can help advertisers reach shoppers in a super targeted way. This gives marketers the ability to make accurate predictions about consumer behavior, and plan ad campaigns accordingly.

2. Seamless ad placement and integration: 

Brands can buy ad space across a retailer’s website, app, or even their email newsletters. Using data to their advantage, these ads are carefully placed at just the right spots along the shopper’s journey, making sure they pop up when they’re most likely to be noticed. This smooth integration keeps shoppers engaged and can lead to higher conversion rates, as the ads feel like a helpful part of the journey rather than an interruption.

3. Personalization: 

Thanks to all that data, brands can make their ads feel more personalized. If a shopper frequently buys organic food, for example, they’re likely to see ads for other organic products, making those ads feel relevant to them.

4. Tracking and optimization:

Retail media networks come with powerful analytics, so brands can keep an eye on how well their ads are doing. Real-time metrics like click-through rates, conversion rates, and return on ad spend (ROAS) make it easy to tweak campaigns to improve results.

Examples of leading retail media networks

When it comes to leading retail media networks, here are some key players making waves: 

Amazon Advertising

Amazon’s got a unique advantage: it lets brands target consumers based on their purchase history and browsing habits. With 38% of global consumers saying they’ve visited Amazon in the last month, it’s clear Amazon’s reach is hard to beat.

Walmart Connect

Walmart uses its treasure trove of customer data to help marketers deliver super targeted ads. Brands can reach shoppers both online and in-store, giving them a well-rounded omni-channel marketing strategy. 

Target Roundel

Target’s ad network, Roundel, uses first-party data to create personalized ad experiences that feel relevant and timely. Integrated right into Target’s digital world, these ads boost consumer engagement by popping up exactly when they’re most helpful.

Criteo

Criteo’s retail media network stands out with its precise targeting and real-time tracking, allowing brands to fine-tune their campaigns as they go. Known for driving strong engagement and conversion rates, it’s become a go-to platform for many marketers.

CitrusAd

CitrusAd takes a different route by offering a self-serve platform where brands can control their own retail media campaigns. Focused on transparency, this network gives advertisers the tools they need to get the best return on their investment.

By tapping into these leading retail media networks, brands have a powerful way to connect with consumers and drive real engagement.

What are the key benefits of retail media networks?

Retail media networks provide a heap of benefits for marketers, retailers, and consumers alike. 

For brands, retail media networks are a goldmine for reaching consumers in “shopping mode” – actively browsing and ready to buy. 

This means ads are landing at the perfect time, leading to higher engagement, more conversions, and a better return on ad spend. 

On the retailer side, these networks open up a new revenue stream by letting brands advertise on their platforms without disrupting the customer’s shopping experience. And with all the first-party data retailers gather, they’re able to offer hyper-targeted ad placements, making them feel relevant and useful rather than intrusive. It’s a win-win: consumers get more relevant suggestions, brands expand their reach in a meaningful way, and retailers boost their bottom line.

How can GWI data help with retail media ads?

So where does GWI come in? We’re here to help brands make the most of their retail media advertising with a deep dive into consumer behavior and shopping habits. With our data, brands get a clear picture of what their audience is interested in, what drives their purchases, and how they engage with media online – making it easier to target the right people with the right message and place ads where they’ll have the most impact. You can find out everything from what your audience listens to, to what car they drive, and what purchases they’re planning in the next six months, then sell to them with targeted ads on their most-visited online grocery site.  

To give you an example, here’s how the neighborhood network, Nextdoor, used GWI data to power its ad sales. From raising awareness about its ad solutions to keeping brands and agencies in the loop about changes in user behavior, Nextdoor ensures its advertisers’ dollars go further.

The challenge

The team’s main challenge was putting the spotlight on its ad solutions, and showing advertisers that Nextdoor is a unique platform where people come to explore neighborhood resources.

The action

Nextdoor created an Insights Hub featuring all of the neighborhood network’s best audience insights – collected from internal first-party data, neighbor surveys, and GWI’s database. 

With the data to back them up, Nextdoor can now zero in on what’s going on both in neighborhoods and between neighbors, so brands and agencies can stay plugged into what’s trending and make strategic decisions about their advertising.

The result

The hub racked up an impressive 197% increase in web page views year-on-year, with the initiative nominated as a finalist in the 2022 ANA Genius Awards in the Marketing Analytics Storytelling category.

Using GWI as a reputable third-party source gave the team the confidence and credibility they needed to offer up data-backed recommendations when selling ad space.

What are the latest retail media network trends?

Retail media networks are rapidly becoming a go-to source for product discovery, as more and more shoppers find themselves influenced by ads on ecommerce sites. In fact, the number of Americans saying they typically hear about products this way has grown by 6% since 2021. 

Globally, consumers are now 48% more likely to find products on retail websites than through celebrity or influencer recommendations.

It’s a shift that highlights the growing trust and convenience associated with online retail platforms. Sites like eBay, where over half of customers buy clothing at least every 2-3 months, are hotspots for frequent shoppers. And it’s not just about browsing; shoppers who want tailored recommendations are 60% more likely than average to make impulse buys, showing how personalization fuels spontaneous purchases. 

Another noteworthy trend? In the past month, more consumers say they’ve watched videos made by brands (26%), than clicking on standard online ads (14%), underscoring the need for more engaging content in retail media advertising. 

Key takeaways

Retail media networks offer a unique opportunity to connect with consumers at the point of purchase, making advertising efforts far more effective. But as this landscape evolves, it’s important to address consumer concerns, and the biggest one is privacy. With 3 in 10 consumers worried about how companies use their personal data online, brands need to be transparent about their data practices to build trust and consumer confidence. 

Whether it’s through endemic or non-endemic retail media ads, focusing on relevance to shoppers’ interests will help brands serve helpful shopping suggestions to those already in a buying mindset. 

Keeping on top of emerging trends and making the most of powerful consumer data allows brands to create targeted, engaging, and personalized advertising campaigns. That’s how you maximize the benefits of retail media networks and drive growth.

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