If you’re a retailer looking to increase your margins—and let’s be real, that’s every retailer—you’d be remiss if you didn’t invest in building a digital retail media network. Retail media is more than just in-store advertising or a plot of digital ad space, it’s a forward-thinking strategy enabling retailers to open a brand new revenue stream and monetize their digital platform in new and innovative ways, all while strengthening relationships with consumers and consumer packaged goods (CPG) brands alike.
Here’s why investing in a retail media network is the smartest decision you can make to ensure your business’s longevity in an increasingly competitive marketplace:
● High margins. Digital ad dollars aren’t just a new incremental revenue stream for retailers—they’re a high-margin stream. According to Boston Consulting Group, digital retail media ad revenue margins are as high as 80%. That alone is a powerful incentive for retailers who’ve long-struggled to turn a profit through historically slim in-store purchase margins. When the opportunity to tap a new high-margin revenue stream presents itself, it’s smart to stake your claim as quickly as possible. That’s especially true when there are $100B in annual high-margin digital ad dollars up for grabs.
● Personalized shopping experiences. When you invest in a retail media network, especially one powered by AI and sophisticated data analytics, you’re making a crucial investment in your relationship with your customers. As mobile capabilities become more sophisticated, customers expect relevant ad experiences. They want ad experiences tailored to their own dietary needs and shopping behaviors. The retailers who can provide high-precision, targeted ad experiences will reap the rewards through bigger baskets at checkout and long-term customer loyalty.
● First-party data. As third-party data and cookies become obsolete, forward-thinking retailers who have built their own digital retail media networks will find they have a valuable new asset on their hands: first-party data. Instead of giving valuable data away to third-party platforms, a sophisticated and intelligent retail media network empowers retailers to own clean, up-to-date data regarding their shoppers’ online behavior. First-party data enables retailers to deeply understand how their customers behave at every touchpoint of their shopping journey, from browsing on mobile to scanning each individual SKU at checkout. In other words, it’s a treasure trove of previously inaccessible information allowing retailers to create highly personalized ad experiences—and drive loyalty among their customers.
● Improved partner relationships. The relationship between retailers and CPGs is also one worth investing in. By building a retail media network, you’re offering your CPG partners unprecedented transparency regarding how their ads perform. When you tap a solution like Swiftly to build your retail media network, you’ll have access to in-depth data you can share with your CPG partners, pinpointing the exact ROI the brand receives from each ad spend. Being able to provide reliable, actionable insights to the brands buying ad space on your digital platform elevates them from mere advertisers to trusted partners, and allows you to work in tandem towards a common goal—increasing sales. Plus, proving to CPGs that their ad spends are effective will only increase the likelihood that they’ll buy more ad space in the future, and that’s a win for you both.
Building a retail media network is a valuable investment in the customer experience, in the relationships you share with CPGs, and in your own business—delivering valuable new assets and unlocking high-margin revenue streams.
As a retailer trying to stay competitive in an ever-evolving retail landscape, it’s an investment you can’t afford to miss out on. Fortunately, Swiftly can build a sleek and sophisticated retail media network designed to help you stay competitive—and even compete against retail titans like Amazon and Walmart.
Curious to learn more about how Swiftly can help you invest in your retailer’s future? Get in touch today.