If this past year has taught us anything, it’s that brick-and-mortar retailers need to devise new strategies for staying competitive—especially amid a widespread decline in foot traffic driven by a pandemic. Shoppers are increasingly digital coming out of the pandemic, so it only makes sense that retailers should be too.
While digital options abound, many of them require outsourcing services and significant budget. To stay truly competitive, retailers can capitalize on a new opportunity to retain total control: enabling a comprehensive digital platform of their own to thrive in the current landscape.
By fine tuning their online presence and building their own retail media network, retailers can break open a robust new revenue stream of digital advertising dollars. Consumer Packaged Good (CPG) digital ad spending is expected to grow 16% in 2021, reaching $22.5 billion and with mobile comprising 73% of the total spend. By building a retail media network that runs on mobile-first technology, retailers will be well-positioned to compete for those abundant digital ad dollars—wrestling a piece of the market share away from giants like Amazon and improving their customer shopping experience. Here’s how:
● Open revenue streams. According to a 2020 Inmar Intelligence survey, retail media networks are proven to be formidable profit centers, and those profits show no signs of slowing down. As the category gains speed, retailers are increasing their investments in the space. Of the 200 retail professionals polled, 34% of them anticipate revenue growth rates between 26% to 75%, and 8.5% believe their ad revenue will grow to more than 74%. By opening new revenue streams across the customer journey, digital media networks offer a ripe opportunity for incremental revenue—and many retailers are capitalizing by building, improving, and expanding their retail media networks’ capabilities.
● Grow your customer base. Due to historically thin margins, retailers have long struggled to drive profit growth. With the new profits derived from digital ad dollars, retailers can subsidize other areas of its operation, improving the customer experience in more ways than one. Leverage profits to offer a connected digital experience, giving consumers greater incentive to choose one retailer over another. With the ability to engage customers at multiple touchpoints of the shopping journey, digital retail media networks present new ways to monetize an existing customer base. With a retail media network, retailers use actual store data to provide targeted ad experiences to shoppers when they’re browsing online, in-app and in-store, allowing them to reach digital shoppers they may be currently cut off from.
● Increase basket size. Customers are more receptive to ads while they’re actually shopping—and retail media networks allow you to meet them where they are at every stage of the buying journey. By offering first-party data to advertisers, retail media networks are well-positioned to personalize the customer’s shopping experience by showing them ads based on their purchasing patterns. The more sophisticated the data analysis and AI capabilities of the platform, the more likely an ad for a preferred product will appear on the shopper’s screen at the most opportune time during their shopping journey, increasing customer purchase volume at check out. With the right digital retail media network, retailers can generate up to 40% more trips to the store—and 10% increases in same-store sales.
Swiftly-powered retail media networks are uniquely positioned to help retailers boost their existing revenue streams—and open new ones from digital advertising dollars. Swiftly is the first solution of its kind to offer an intuitive, comprehensive digital platform digitizing every aspect of the shopping experience in one place. Unlike other solutions, Swiftly won’t require you to outsource capabilities—like delivery or data analytics—to a third party provider, which means you won’t have to share your revenue.
Don’t wait to discover untapped revenue streams. To learn more, contact Swiftly today.