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Digital advertising experienced a transformative shift in 2023, with retail media networks emerging as a focal point for advertisers seeking precision and efficacy. These networks defined how brands connect with consumers, utilizing the unique environment of digital storefronts to deliver targeted and personalized advertisements. Below, we’ll discuss the diverse landscape of retail media networks, examples of these platforms, and how Experian is at the forefront of empowering advertisers within this evolving marketing ecosystem.
What are retail media networks?
A retail media network (RMN) is an advertising platform retailers use in their digital storefronts or online platforms. It lets brands and advertisers promote their products or services directly within the retail environment where consumers make purchasing decisions. Unlike traditional advertising channels, RMNs use the retailer’s first-party data to offer targeted and personalized advertising experiences.
How important is it to advertise with RMNs?
RMNs offer advertisers a unique advantage — a rich set of first-party data on consumers, both on and off the platform. On-platform data includes user engagement insights, demographic information, and behavioral patterns. RMNs offer off-platform first-party data, such as cross-channel integration and CRM data integration. This data is especially important as the industry sees a shift away from the reliance on third-party cookies.
One of the key challenges brands face is the lack of tracking abilities through the customer journey. However, the closed-loop measurement and attribution capabilities within RMNs help advertisers track the entire consumer journey, linking campaign spend directly to final sales and in-store purchases. The precision and accountability offered by RMNs make them a crucial strategy in the ever-evolving world of digital advertising.
Trends with big RMNs
Here is a list of retail media networks and their performance in 2023. The information below offers insights into their reach and effectiveness in driving sales and brand visibility.
Amazon
According to Pacvue’s Q4 guide, Amazon Media Network experienced a year-over-year decline in its daily spend. However, a notable quarterly increase of 3.2% suggests a recent expansion in this ad type. The current average CPC for Amazon-sponsored products is $1.21, marking a substantial 7.1% year-over-year increase. Return on ad spend (ROAS) showed a 1.5% year-over-year decrease but increased by 6.1% quarter-over-quarter, potentially caused by more efficient campaigns. The beauty category showed a particularly strong performance with a remarkable 69.4% year-over-year increase.
Walmart
Walmart’s advertising revenues are surging at a rate twice that of Amazon, according to the Pacvue Q4 report. This quarter, the Walmart Media Network experienced a substantial 40% boost in ROAS, now at $6.93. This advancement can be attributed to strategic adjustments in the algorithm and bid rules and the incorporation of new bid features. Walmart’s CPC also witnessed a noteworthy 18.3% year-over-year decrease and a 14.5% year-over-year surge in average ad spend. Walmart’s growth trajectory emphasizes the shift in consumer behavior toward product discovery, as many consumers research products on the website before purchasing.
Kroger
Kroger developed an advanced retail media network that launched in October 2023. Their platform offers advertisers a more streamlined way to activate, measure, and optimize their campaigns, leading to improved advertising performance. The self-serve advertising platform lets advertisers promote products across the Kroger family of brands. Kroger is the biggest grocery chain in the country with a strong first-party shopper data set, providing more advanced audience targeting than many other grocery RMNs.
Target
Target launched its retail media network, Roundel, in 2016 to enhance the connection between brands and guests through curated media experiences. Roundel uses Target’s rich insights to create personalized advertising campaigns, reaching guests across several platforms and premium publishers. Over the past two years, Roundel has experienced over 60% growth, delivering over one billion in value for Target in 2021 and 2022. With a team of over 500 members, the platform differentiates itself by offering easy-to-use advertising solutions to brands of all sizes. Target plans to launch Roundel Media Studio, a self-service buying tool, in early 2024.
Marriott
In partnership with Yahoo, Marriott has created a travel media network that lets advertisers target consumers based on the hotel chain’s guest data. This collaboration allows ads to be strategically placed on various platforms, including the hotel’s websites. Marriott Media Network’s rollout will start on mobile platforms similar to traditional RMNs. Over time, it will extend to include ad placements on TV screens in guest rooms, Wi-Fi portals, and various digital screens in other areas, like lobbies and bars. This innovative approach in the hotel industry offers marketers diverse opportunities to reach their target audience.
Nordstrom
Nordstrom Media Network has shown considerable success, generating over $40 million in revenue and collaborating with several brand partners. Introduced in 2019, this network initially experimented with off-site campaigns and later expanded to on-site sponsored ads in 2021. Nordstrom Media Network offers data from 32 million customers and digital properties with nearly two billion annual visits. The network’s focus on personalizing the customer experience helps it stand out in the competitive retail media space and makes it a valuable player in the evolving digital advertising landscape.
CVS
With CVS Media Exchange, advertisers have access to a data set of 74+ million customers. This platform creates tailored campaigns for companies, helping their ads reach customers at the most critical points in their shopping journey. With options like display, video, audio, social, and in-store ad options, advertisers are seeing increases in product purchases and brand awareness.
Instacart
Instacart has a retail media network through its own platform and a tool called Carrot Ads, which helps grocery store chains develop RMNs through Instacart. It has a network of over 1,400 retail brands, helping advertisers reach their target audience. Advertisers have access to insights and automation to create relevant ads and track their progress.
Companies like Sprouts are using Carrot Ads to create and grow their own RMNs. Together, Instacart and Sprouts offer brands a unique opportunity by facilitating targeted online campaigns on Sprouts’ website. This collaboration provides access to metrics like sales and ROAS, offering a comprehensive view of campaign performance.
DoorDash
DoorDash offers a comprehensive suite of advertising tools for restaurants and brands to expand their reach on the DoorDash marketplace. This flexible advertising platform extends across diverse categories, like restaurants, grocery, convenience, alcohol, and more. The platform has demonstrated success with an average return on ad spend of 4.1x from sponsored product campaigns and an average of 70% new-to-brand customers.
Reasons behind these trends
The surge in advertising trends within RMNs can be attributed to several critical factors, including the following:
Rising retail media competition
The competitive landscape within the retail world has intensified, with major players competing for a larger share of the advertising pie within their respective RMNs. This surge in competition among retailers like Lowe’s One Roof, Sprouts, 84.51, and Albertson’s Media Collective has led to a continual evolution of features and capabilities. Advertisers benefit from this competitive spirit because it drives innovation and offers enhanced tools and opportunities to refine their advertising strategies. The competitive edge creates an environment where RMNs continually improve and adapt to meet the needs of both advertisers and consumers.
Third-party cookie deprecation
Major web browsers are getting rid of third-party cookies, so advertisers must reevaluate their targeting and tracking strategies. Because of this, the first-party stronghold of RMNs is particularly valuable. Advertisers can rely on their reservoir of first-party data with RMNs to maintain effective audience targeting and measurement capabilities. The emphasis on first-party data aligns with advertisers’ needs in the post-cookie era, making RMNs crucial partners in the pursuit of effective and privacy-conscious advertising solutions.
Crafting your RMN ad strategy
Crafting an effective RMN ad strategy is a multifaceted process that involves careful planning. You start with clean, scaled, and scoped data, then everything waterfalls from there. When done correctly, you reach the right audience, your ROAS/ROI results improve, your marketing spend is more effective, and your advertisers want to spend more with your RMN. Here are steps to consider when developing your RMN ad strategy.
Choose the best RMN partner for your needs
Selecting the right partner is a critical first step. Ensure your partner seamlessly integrates with your existing MarTech stack, avoiding any additional workload for your existing team. A symbiotic relationship with your RMN partner enhances collaboration and streamlines your advertising initiatives.
Experian’s comprehensive data and identity solutions can help RMNs maximize their opportunity, with our new solution tailored to enhance RMNs’ strength in first-party shopper data. Experian’s solution helps RMNs unlock expanded customer insights, enriched audiences for activation, identity resolution for cross-channel audience targeting, and real-time measurement and attribution. This comprehensive solution is designed to help RMNs capture more advertising revenue. Our goal is to ensure you capture the most advertising dollars and make your RMN operate at its peak performance.
Utilize third-party data
One of the cornerstones of an effective RMN strategy is the integration of third-party data. This is where Experian steps in as a critical ally. Experian’s robust third-party data solutions can enhance an RMN’s first-party data to create more scale and scope for RMN audiences. This, in turn, will open up more opportunities for advertiser investment.
Utilize first-party data
The main advantage of RMNs is the access to first-party data. Advertisers can use this data to create personalized and targeted campaigns. By tailoring your messages based on consumer expectations, preferences, behaviors, and purchase history, you create a more engaging and relevant ad experience. This not only boosts the effectiveness of your campaigns but also fosters a deeper connection between your brand and the audience.
Promote relevant products
Personalized ads are crucial for capturing audience attention and driving conversions. With retail media platforms, advertisers can personalize their campaigns to individual shoppers. Promoting products that align with your audience’s specific needs and preferences increases the likelihood of conversions.
Consider the consumer journey
Strategic ad placement within the consumer journey is pivotal. Consider targeting consumers late in the decision-making process when they’re in a shopping mindset. Placing ads at this point in the customer journey increases the chance of converting prospects into customers. Understanding the customer journey within an RMN system allows for a more targeted and impactful advertising strategy.
Measure data and adapt
The final step in the process is continuous measurement and adaptation. Retail media platforms include powerful analytics tools that let advertisers track and analyze ad performance in real time. Use these insights to adapt your strategy. A data-driven approach ensures your campaign remains responsive to the changing marketing dynamics.
Elevate your advertising strategy with Experian
Transform your advertising strategy with Experian’s cutting-edge Consumer View solutions. These advanced tools excel in audience segmentation and easily integrate your first-party data with our comprehensive third-party insights. This ensures the seamless activation of your data across online and offline channels. Experian also has custom audiences and audiences that are available on-the-shelf of most major platforms. This and our onboarding capabilities make Experian the perfect partner for your RMN strategy.
Connect with a member of our team today to take the next step in elevating your advertising campaigns.
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The political winds in the United States shifted sharply to the right earlier this month with Republicans making gains across the board. While political party affiliation was a strong indication of a candidate's success in the election, we wondered: Can the political leaning of a TV show's audience determine the success of the program? The answer is yes. Experian Simmons examined the political party registrations of viewers of over 700 television programs measured in the Spring 2010 Simmons National Consumer study. We found that registered Republicans and Democrats, indeed, have different preferences in entertainment programs. But especially noticeable was the preponderance of highly rated Nielsen programs at the top of the Republican list. Not all shows that skew Republican are ratings darlings, of course, but programmers should take note of this fact if ratings are their foremost goal. Republicans: When looking at programs on broadcast TV, we see that Republicans tend to gravitate towards reality shows that center on some sort of competition. In fact, Republicans are 32% more likely to watch The Amazing Race on CBS than the average American adult. They're also 24% more likely to watch American Idol on Fox and 18% more likely to watch America's Got Talent on NBC. The Simmons data provides some evidence that it's the competitive angle of these shows that is attracting Republicans. Specifically, Republicans are fully 29% more likely than the average adult to watch the results show of Dancing with the Stars on ABC and just 17% more likely to watch the non-results episodes of the same show. Republicans tend to gravitate towards reality shows that center on some sort of competition. When it comes to cable entertainment programs, Republicans tend to prefer lifestyle programs on HGTV and TLC. Republicans are also found in high concentrations among many adventure/documentary show audiences, like Ice Road Truckers on History and Deadliest Catch on Discovery. And finally, big families are big draws for Republicans with 18 Kids and Counting and Jon & Kate Plus 8, both on TLC, attracting more than average concentrations of Republican viewers. Top indexing Republican NETWORK programs (non-news, non-music) Republican Index Top indexing Republican CABLE programs (non-news, non-music) Republican Index THE AMAZING RACE (CBS) 132 PROPERTY VIRGINS (HGTV) 125 DANCING WITH THE STARS RESULTS SHOW(ABC) 129 MODERN MARVELS (HISTORY) 121 MODERN FAMILY (ABC) 124 COLOR SPLASH (HGTV) 120 AMERICAN IDOL (FOX) 122 UNSELLABLES (HGTV) 120 V (ABC) 122 LEVERAGE (TNT) 118 THE BIG BANG THEORY (CBS) 119 18 KIDS AND COUNTING (TLC) 116 THE GOOD WIFE (CBS) 119 DEAR GENEVIEVE (HGTV) 116 THE MENTALIST (CBS) 119 WHAT NOT TO WEAR (TLC) 116 AMERICA'S GOT TALENT (NBC) 118 DINERS, DRIVE-INS & DIVES (FOOD NETWORK) 115 SURVIVOR (CBS) 118 HOUSE HUNTERS (HGTV) 115 DANCING WITH THE STARS (ABC) 117 INCOME PROPERTY (HGTV) 114 DESPERATE HOUSEWIVES (ABC) 116 OPERATION REPO (TRU TV) 114 NCIS (CBS) 115 WHITE COLLAR (USA) 114 HUMAN TARGET (FOX) 114 ICE ROAD TRUCKERS (HISTORY) 112 LIE TO ME (FOX) 114 PAWN STARS (HISTORY) 112 THE BACHELOR (ABC) 114 SAY YES TO THE DRESS (TLC) 111 ANTIQUES ROADSHOW (PBS) 113 DIRTY JOBS (DISCOVERY) 110 CASTLE (ABC) 113 MYTHBUSTERS (DISCOVERY) 109 HOW I MET YOUR MOTHER (CBS) 113 JON & KATE PLUS 8 (TLC) 106 THE BACHELORETTE (ABC) 113 AMERICAN LOGGERS (DISCOVERY) 105 EXTREME MAKEOVER: HOME EDITION (ABC) 112 IN PLAIN SIGHT (USA) 104 NCIS: LOS ANGELES (CBS) 112 THROWDOWN WITH BOBBY FLAY (FOOD NETWORK) 104 TWO AND A HALF MEN (CBS) 112 DEADLIEST CATCH (DISCOVERY) 103 FRIDAY NIGHT LIGHTS (NBC) 111 MAN VS. WILD (DISCOVERY) 103 CELEBRITY APPRENTICE (NBC) 109 THE SMOKING GUN PRESENTS:WORLD'S DUMBEST (TRU TV) 103 Democrats: On the left side of the broadcast dial, we see that registered Democrats tend to be drawn to crime and legal dramas like Law & Order and Law & Order: SVU, both on NBC. We also see higher concentrations of Democrats tuning into broadcast shows featuring female characters playing central or leading roles, such as Brothers & Sisters on ABC, Medium on CBS, 30 Rock on NBC and the Good Wife on CBS. The Good Wife, actually, has higher than average concentrations of both registered Democrats and registered Republicans. Given that the program is about the wife of a politician, it's not such a surprise that registered voters from both sides of the aisle tune in. We also see higher concentrations of Democrats tuning into broadcast shows featuring female characters playing central or leading roles. On cable, we see high concentrations of registered Democrats tuning into character-driven dramas, like Dexter and United States of Tara, both on Showtime. Democrats also flock in disproportionate numbers to cable reality shows. But unlike the competitive reality shows favored by Republicans, Democrats prefer observational reality shows where they get to peer into the lives of celebrities or unique and extraordinary people. Top indexing Democrat NETWORK programs (non-news, non-music) Democrat Index Top indexing Democrat CABLE programs (non-news, non-music) Democrat Index FLASHPOINT (CBS) 145 TYLER PERRY'S MEET THE BROWNS (TBS) 189 HOMETIME (PBS) 143 HOUSE OF PAYNE (TBS) 181 90210 (CW) 140 REAL TIME WITH BILL MAHER (HBO) 165 WIFE SWAP (ABC) 136 SNAPPED (OXYGEN) 162 AMERICA'S NEXT TOP MODEL (CW) 135 SHERRI (LIFETIME) 153 NOVA (PBS) 133 HAWTHORNE (TNT) 153 LAW & ORDER (NBC) 132 LIVE FROM THE RED CARPET (E!) 149 SMALLVILLE (CW) 131 DEXTER (SHOWTIME) 147 WHO DO YOU THINK YOU ARE? (NBC) 130 UGLY AMERICANS (COMEDY CENTRAL) 147 BROTHERS & SISTERS (ABC) 127 KOURTNEY & KHLOE TAKE MIAMI (E!) 146 PRIVATE PRACTICE (ABC) 127 TODDLERS & TIARAS (TLC) 145 MEDIUM (CBS) 126 UNITED STATES OF TARA (SHOWTIME) 144 TRUE BEAUTY (ABC) 126 MEET THE NATIVES (TRAVEL CHANNEL) 144 AMERICA'S MOST WANTED (FOX) 126 BRIDEZILLAS (WE TV) 143 30 ROCK (NBC) 126 TOP CHEF MASTERS (BRAVO) 142 VICTORY GARDEN (PBS) 126 WOMEN BEHIND BARS (WE TV) 142 THE GOOD WIFE (CBS) 124 THE BOONDOCKS: ADULT SWIM(CARTOON NETWRK) 142 ONE TREE HILL (CW) 124 TABATHA'S SALON TAKEOVER (BRAVO) 140 NEW YANKEE WORKSHOP (PBS) 122 DOWN HOME WITH THE NEELYS (FOOD NETWORK) 140 LAW & ORDER: SVU (NBC) 122 BAD GIRLS CLUB (OXYGEN) 138 MASTERPIECE (PBS) 122 SCARE TACTICS (SYFY) 136 COMMUNITY (NBC) 122 MILLION DOLLAR LISTING (BRAVO) 135 BIG BROTHER (CBS) 121 MODELS OF THE RUNWAY (LIFETIME) 135 GOSSIP GIRL (CW) 120 TORI & DEAN: HOME SWEET HOLLYWOOD (OXYGEN) 133 FRIDAY NIGHT LIGHTS (NBC) 119 DESTINATION TRUTH (SYFY) 132 For more information about the in-depth consumer behaviors, attitudes, lifestyles, brands and media measured in the Simmons National Consumer Study, visit our website.
Frugal living seems to have become a more common trademark of the American consumer in the last couple of years. Since the beginning of 2008, 20% less and 35% less US adults report to have purchased merchandise at the upscale stores Macy’s and Bloomingdale’s respectively. By contrast, 8% more and 62% more US adults report to have purchased merchandise at Marshall’s and Ross Stores, respectively. Discount stores appear to be weathering the recession better than some of their full-price counterparts, as they carry first-quality designer merchandise at competitive prices, often advertised at up to 70% below department store prices. However, many of these designer discount retailers would be in a difficult position without the existence of department stores, since the designer discount business model is primarily based on purchasing close-outs from the very department stores that they compete against. Discount stores appear to be weathering the recession better than some of their full-price counterparts Since the beginning of 2008, an average 54% of US adults shop around a lot to take advantage of specials and bargains. Also, from January 2008 to August 2009, 7% more US adults tend to hold out on buying things until the go on sale and 13% more head right for the clearance rack when they enter a store. In conclusion, the past 2.5 years have seen the American consumer become a more serious discount shopper – a trend that is likely to continue in this current, uncertain economic environment.