It’s no secret that the holidays represent one of the most critical seasons for retailers. It’s a time when competition is fierce and the noise in the market can be deafening, particularly for customers on the hunt for amazing deals for their favorite holiday meals, seasonal treats and essentials for their celebrations. But amidst all the holiday jingles and festivities, there's a strategic tool that savvy retailers are using to cut through the noise and connect with their target audience: Retail Media.
The Holiday Retail Media Boom
In 2023, Retail Media advertising is set to experience a significant boom. According to recent data, US retail media ad spend is projected to reach a staggering $45.15 billion, representing a remarkable 19.7% year-over-year growth. This impressive surge highlights the growing importance of retail media as a powerful advertising channel, especially during the holiday season.
Why Retail Media Matters
Retail media has gone from a nice-to-have to a necessity as retailers compete for their share of the projected $125.7B in revenue that’s on the table in 2023. Not only does an owned-and-operated retail media network add more to a retailer’s bottom line, but it also provides shopper-level insights and first-party data that allows brands and retailers to promote their products directly to consumers while they are actively shopping.
This targeted approach offers several key advantages, including:
· A High-Intent Audience: During the holiday season, shoppers are focused on buying ingredients for special meals and stocking up on festive items. Retail media enables you to reach consumers who are already in a buying mindset, making it a cost-effective way to engage high-intent shoppers.
· Data-Driven Insights: Retail media platforms provide valuable data and insights into grocery shoppers' behavior. Grocery retailers can use this data to refine their targeting, optimize their campaigns, and make informed decisions that maximize ROI during the holiday season.
· Enhanced Product Discovery: With the holiday rush, consumers have a multitude of choices. Retail media helps your grocery products stand out among the competition, making it easier for shoppers to discover and select your offerings for their holiday meals.
· The Competitive Edge: Given the growing adoption of retail media in the grocery sector, grocery brands that embrace this advertising channel gain a competitive edge. They can effectively engage with consumers at crucial touchpoints, driving brand visibility and sales.
How to Harness the Power of Retail Media This Holiday Season
Boosted revenue isn’t all that’s up for grabs when it comes to Retail Media and the holidays. Customer loyalty, brand exposure and first-party data are also on the line. In order to keep up with the competition, there are a few vital steps retailers should focus on taking:
1. Put Retail Tech at the Top of Your Wish List: If you haven’t invested in retail technology yet, now’s the time. Retailers of all sizes are leveraging the evolving tools and solutions that are available to capture all the benefits that come from an owned-and-operated retail media program. If you’re thinking it’s too late to get a platform in place this holiday season, you’re wrong. Companies like Swiftly can help you get up and running with plug-and-play solutions that integrate easily with your current tech stack.
2. Target Wisely: Utilize the data insights available through retail media platforms to target your audience effectively. Consider demographics, shopping history and previous purchase behavior, especially in relation to holiday items.
3. Continuously Optimize: Keep a close eye on the performance of your retail media campaigns and adapt your strategies as needed. This may involve reallocating budget, refining targeting, or updating ad creatives to better serve your grocery customers.
4. Focus on the Shopping Journey: The rise of Retail Media has caused shoppers to depend on –and expect—targeted advertising and deals to inform their shopping decisions. The only way to connect them with that experience is to provide a seamless, omnichannel journey that bridges their online and in-store interactions, from discovery to checkout.
When it comes down to it, rising above the noise and connecting with your audience this holiday season isn’t as difficult as one would think. Contact Swiftly today to get the tools and solutions you need to embrace Retail Media and to help your grocery store shine brightly—and your customers shop joyfully—during this festive time of year.