In the bustling digital advertising marketplace, Retail Media Networks (RMNs) are carving out a substantial niche, echoing the nascent stages of search marketing. Essentially, RMNs are advertising networks owned and operated by retailers, enabling brands to reach consumers directly on the platforms where they shop. By setting up RMNs, retailers open up a new revenue stream while offering brands a highly targeted and data-driven advertising opportunity.
Amazon Ads and Walmart Connect are among the best-known players, but retail media networks have appeared in any number of industry verticals this year. They are now present in jewelry, furniture, grocery, electronics, and dozens of other areas already.
The spotlight is now on these networks as they exhibit a robust growth trajectory, with ad spending expected to soar at a rate of 22% per year over the next five years. Additionally, the accelerated shift to e-commerce, propelled by recent global events, has further fueled this growth, with nearly 34% of consumers shopping more often online.
Key facets of Retail Media Networks:
Platform Ownership: Retailers own the platforms and have control over the advertising space, enabling a seamless integration of advertisements within the shopping experience.
Data Access: Retailers possess valuable first-party data from their customers. This data is a treasure trove for advertisers as it provides insights into shopping behaviors, preferences, and patterns, allowing for highly targeted advertising.
Advertising Opportunities: Brands can advertise their products directly on the retailer's platform, which can include online marketplaces, apps, and even in-store digital displays.
Consumer Journey Integration: RMNs allow for advertising across different stages of the consumer journey, from discovery to purchase, providing a holistic advertising solution.
How Search Marketing Fundamentals Can Prepare Advertisers for Retail Media Success
As retail media networks burgeon into a $50 billion market, the fundamentals of search marketing are emerging as a crucial scaffold for mastering this evolving domain. The meticulous, manual approach that once defined search marketing is now a cornerstone in navigating the RMN landscape, making a solid grounding in search marketing principles a significant asset for digital marketers venturing into RMNs.
The manual intricacies of setting up campaigns and determining cost-per-click (CPC) bids in RMNs bear a striking resemblance to the early endeavors of search marketers. The following are five ways advertisers can use digital marketing skills from Google Ads and Bing Ads to deliver RMN success.
1. Laying the Foundation:
Keywords and Targeting:
The essence of effective advertising in both search marketing and retail media networks lies in selecting the right keywords and targeting the right audience. The meticulous process of keyword research and audience targeting in search marketing serves as a crucial learning curve for navigating the RMN landscape.
Understanding consumer intent and behavior through keywords and leveraging this insight to reach the most relevant audience is a skill honed in search marketing. This foundational knowledge is indispensable in RMNs, where precise targeting can significantly enhance campaign effectiveness and ROI.
Ad Creation and Optimization:
Crafting compelling ads that resonate with the target audience and optimizing them for performance are skills that transition seamlessly between search marketing and RMNs. The principles of A/B testing, ad copywriting, and performance analysis honed in search marketing remain pivotal in RMNs.
The continual process of ad testing, learning, and optimization in search marketing serves as a practical blueprint for RMN campaigns. By applying these principles, advertisers can significantly enhance ad effectiveness, driving better engagement and higher conversion rates.
2. Data-Driven Decisions:
Analyzing data to glean actionable insights is a hallmark of search marketing. This analytical approach is equally critical for monitoring, analyzing, and optimizing RMN campaigns. The ability to dissect and interpret data to inform decision-making is a skill that translates well in the RMN arena.
Utilizing data analytics tools to monitor campaign performance, identify trends, and uncover insights is a practice rooted in search marketing that proves invaluable in the retail media network landscape. The data-driven decision-making approach is crucial for optimizing campaign performance and achieving desired outcomes.
Key performance metrics like Click-Through Rates (CTRs), Conversion Rates, and Return on Ad Spend (ROAS) are fundamental in assessing campaign success in both realms. Understanding and tracking these metrics provide a clear picture of campaign effectiveness and areas of improvement.
The ability to measure, analyze, and optimize performance based on these metrics is a skill developed in search marketing that remains vital in retail media networks. It enables advertisers to fine-tune their campaigns, optimize budgets, and enhance overall campaign effectiveness.
3. Budgeting and Bidding:
Manual setup of CPC bids is reminiscent of early search marketing days. Understanding budget allocation and effective bidding strategies is essential for managing RMN campaigns. The hands-on approach in manual CPC setup provides a deeper understanding of bid optimization and budget management.
The principles of budget allocation and bid optimization in search marketing provide a practical framework for navigating the manual bidding landscape in RMNs. By applying these principles, advertisers can effectively manage budgets, optimize bids, and achieve better ROI.
Maximizing ROI by balancing budgets and optimizing campaign performance is a skill honed in search marketing that remains indispensable in the RMN ecosystem. The ability to balance budget allocation with campaign objectives to achieve optimal ROI is a critical skill transitioned from search marketing to RMNs.
Employing ROI-centric strategies and optimizing campaigns for better ROI is a practice rooted in search marketing that proves invaluable in the competitive RMN landscape. It enables advertisers to achieve better results with efficient budget utilization.
4. Technological Leverage:
Automation and AI:
As RMNs evolve, leveraging automation and AI will become increasingly important. Marketers with a background in utilizing technology to enhance search marketing efforts will find themselves better positioned as similar technologies permeate RMNs.
The integration of automation and AI in search marketing has significantly enhanced campaign efficiency and effectiveness. As retail media networks gradually embrace these technologies, the knowledge and experience gained in search marketing will provide a competitive edge for advertisers.
5. Continuous Learning:
Interactive Learning Environments:
Platforms like Novela’s digital marketing simulations provide an interactive learning environment that facilitates transitioning the knowledge acquired in search marketing to mastering retail media networks. The simulation-driven, active learning journey is designed to deepen understanding and retention of core eCommerce advertising concepts.
Engaging with interactive learning platforms aids in continuous learning and adaptation to the evolving RMN landscape. It provides a practical, hands-on approach to learning, enabling advertisers to apply the principles learned in search marketing to excel in retail media campaigns.
Novela has already had success in business schools by taking a Euclidean approach to online pedagogy. We teach the fundamentals through active learning, providing students with the tools to explain their decisions and improve their strategies.
These capabilities are critical for any business set to launch retail media campaigns. Get in touch to book your Novela demo today!