Brands have realized that mass digital channels like Facebook and Google cannot drive the kind of sales and returns they needed from their advertising dollars, and as a result they have been shifting massive ad budgets directly to retailer media networks, in hopes of reaching shoppers more effectively and driving greater ROI.

We believe there are 4 reasons why retail media is more effective than mass digital media channels and why brick & mortar retailers are in a prime position to win ‘the battle for influence’.

4 key competitive advantages for brick & mortar retailers.

  1. Shopper Knowledge – retailers know shoppers better (through POS data and Loyalty programs)
  2. Relationship and Relevance – retailers have developed a relationship of trust with shoppers and can provide the right solution/offer/deal at the right time, when shoppers are ready to buy and want to receive those messages from them.
  3. Conversion – relationship, relevant messages and trust allow retailers to turn influence with shoppers into sales in store, something that mass digital media has a hard time doing.
  4. Optimization – closed loop reporting and then subsequent optimizations to campaigns enables higher performance from campaigns.

The problem for most retailers is that the cost to build or buy all the technology they need to compete in a blended, omni-channel retail world is massively expensive, and the platforms they already own were created independently and don’t necessarily work together cohesively.

That’s why many brick & mortar retailers are lagging behind the obvious leaders who have the ability to spend enormous amounts of money to buy the technology they need and engineer it to work.

But it’s not too late.

The key for most retailers is to provide a platform for brands to invest advertising dollars and reach shoppers, thereby offsetting the massive investments necessary to win.

Brick & mortar retailers will win the Battle for Influence and they will do it by leveraging their built-in advantages over mass digital media and by inviting brands to partner with them to win.