As Retail Media growth continues to expand, brands must be prepared to maximize the opportunities through effective brand strategy and media planning. Chatting with Tamara Alesi, CEO of Mediaplus North America - a Serviceplan subsidiary - , we learn more about integrating online and offline experiences for a seamless customer shopping journey.
In your opinion, what has been the catalyst for this explosive growth of retail media?
Covid-19 was the primary catalyst for the explosive growth in retail media, because of the need, and the rise of e-commerce and the corresponding increase in first-party data available to retailers, which followed. As more shopping moves online, retailers have access to a wealth of data about consumer behavior and preferences, which can be used to drive personalized and targeted advertising. This has created a new revenue stream for retailers and an opportunity for brands to reach highly engaged audiences, resulting in rapid growth for retail media.
In addition to the growth of e-commerce, the rise of new technologies like AI and the increasing importance of data privacy have also contributed to the growth of retail media. Retail media provides a solution to both of these trends, as retailers can leverage AI to create personalized advertising experiences and offer a privacy-safe alternative to third-party cookies for targeting and measurement.
Retailers are becoming media owners. How will this impact brand strategy and media planning?
The rise of retail media presents both challenges and opportunities for brands. To maximize the opportunities and ensure effective brand strategy and media planning, brands will need to be agile, data-driven, and collaborative. Here are some examples of how they can achieve this:
- Develop integrated advertising strategies across multiple channels, including traditional media and retail media networks, to ensure a cohesive customer experience;
- Balance support for key retailers in both online and offline experiences, as some retailers require in-store investment for digital shelf space, while others insist on digital minimums for brick and mortar consideration;
- Allocate budgets based on revenue, potentially shifting some spending from traditional media to retail media to take advantage of the opportunities provided by retailers;
- Create targeted and personalized campaigns to reach specific audiences within each retailer's ecosystem.
Retail media offers a significant opportunity for brands to connect with consumers where they prefer to shop, but a thoughtful and strategic approach is essential for achieving both short-term and long-term growth.
What opportunities do AI and CX data offer brands in the customer journey?
Three important opportunities for brands to lean into:
- Proving personalized recommendations based on customer behavior and preferences;
- Being predicative about customer behavior to improve engagement and resource allocation;
- Enhancing customer service through AI-powered chatbots
These opportunities enable brands to elevate “easy” while creating more tailored experiences, increasing customer loyalty and overall satisfaction.
What kind of retail experiences do GenZ and GenA value?
These generations want everything to be personalized for them. To win share of mind and wallet, shopping experiences must be frictionless, and convenient across multiple channels. AR try-ons or events are a must and supporting socially and environmentally responsible practices is important too. These generations want a sense of community and shared values – even with brands.
How can brick and mortar locations evolve so that they remain relevant in a digital world?
In my opinion, three strategies stand out:
First, brands must offer unique experiences. I remember when AEO opened their Union Square location, allowing students to wash their clothes for free. Brilliant. Especially as they could shop while they wait.
Second, brands must embrace technology to enhance the in-store experience, making shopping, returns, etc – easy.
Lastly and most important, convenience, inclusive of self-checkout, curbside pick-up or same-day delivery. Enable an “Amazon-life” experience.
By adopting these strategies, stores can create experiences that are relevant and engaging. In an IG/TT world, best way to keep current customers and lure new ones.