Why digital retail media? Consumers are turning to their smartphones to shop at unprecedented rates, causing businesses large and small to rethink how they interact with customers digitally. This shift in customer behavior means that traditional brick and mortar stores are no longer enough to keep up with today’s fast-paced world of commerce. So what does it take to succeed in today’s retail landscape? The answer lies within a rapidly expanding set of services called digital retail media.
Based on our experience, business leaders need guidance navigating these new waters. As such, our purpose is to equip executives and decision makers alike with a comprehensive roadmap for success when it comes to digital retail advertising through strategic initiatives that drive returns on investments. Overall, our goal is twofold: help businesses understand why digital retail media matters now more than ever, and then reveal key action items in segments like market research to tackle it.
If you feel like you could use some help on these matters, feel free to contact me to upgrade your digital retail media strategy.
Understanding Consumer Behavior
Knowing your target audience is critical for any successful digital retail media campaign. It allows businesses to create content and ad creative that appeals specifically to them, increasing conversions and ultimately ROI. Since consumers spend significantly more time online nowadays, understanding this new era of constant connection, including social media habits, preference between influencers vs friends/family endorsements, is necessary to reach users effectively where they will see and engage most often. With advanced tools available, digital retailers must learn how to analyze data efficiently. To ensure maximum effectiveness, implement segmentation strategies, focusing on user locations, behaviors, interests, devices, etc. This narrow focus leads to higher CTR, CVR, and lower acquisition costs compared to blunt broad advertisement methods. Digital marketers should always remember to track and iterate as needed to maintain high efficiency.
Leveraging Technology and Innovation
Harnessing recent developments in AI, AR, and personalization can lead to significant improvements within your digital retail media approach. Some popular innovations include using facial recognition software for product suggestions based on customer appearance and browsing history, sending push notifications at optimal times determined by machine learning algorithms, and offering virtual try-ons for clothing items utilizing smartphone cameras or VR headsets. When adopting these tech features, consider implementing them gradually via pilot tests before committing full-scale resources, partnering with experts if internal knowledge gaps exist, and continuously evaluating results and adjusting accordingly. Ultimately, integrating modern technology successfully requires being adaptable and proactive, capitalizing upon emergent opportunities.
What is it to expect for the next months?
According to the Retail Media 2023 study by Skai, marketers are optimistic about the future of retail media advertising. The report reveals that 87% of marketers plan to maintain or increase spending on retail media in the coming year, while 93% believe it will remain a priority for the next two years. However, nearly two-thirds of respondents reported a strong or slightly negative impact on their 2023 retail media budgets due to current economic conditions. Despite this, marketers are quickly adapting, with 89% saying their retail media programs are average, above average, or excellent in maturity.
While there are challenges ahead, such as increased competition and privacy concerns, the overall outlook is positive. Marketers are expected to continue investing in retail media advertising as they see positive results from their efforts.
Takeaways
A deep understanding of target audiences coupled with state-of-the-art technological capabilities offers immense potential advantages for those utilizing digital retail media platforms. By creating highly relevant messaging, delivering it across multiple channels, analyzing performance meticulously, and refining efforts relentlessly, companies can convert more browsers into buyers while optimizing their advertising expenditures. Embracing emerging trends like AR and AI also provides an opportunity to gain an edge over competitors slow to incorporate these advances. For best results when executing modern digital advertising initiatives, be sure to heed our advice throughout this guide and continually seek improvement through testing and adaptation. Remember, achieving success requires dedication and persistence.
Contact me now, to start working on your customized digital retail media strategy.