In this article…
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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Financial Personalities > Credit Card Financial Personality Deposits financial personality – These audiences include consumers who are likely to look for bank offers based on their spending behaviors. Financial Personalities > Deposits Financial Personality Investments financial personality – Audiences to help understand a consumer’s comfort and behaviors with making financial investments. Financial Personalities > Investments Financial Personality Home equity financial personality – Audiences to help understand a consumer’s home equity circumstances and behaviors. Financial Personalities > Home Equity Financial Personality Mortgage financial personality – Audiences to help understand a consumer’s behavior and preferences with mortgages. Financial Personalities > Mortgage Financial Personality Investable assets (FLA/Fair Lending Friendly)* – Audiences that include consumers who have available investable assets in seven total tiers with Tier 1 being the highest, and Tier 7 being the lowest. Consumer Financial Insights > Investable Assets Net asset score (FLA/Fair Lending Friendly) – Predict a consumers likely net asset score ranging from less than $25,000 to over $5,000,000. Consumer Financial Insights > Net Assets Score (Net Worth) Discretionary spend – Predicts the annual discretionary spend for the category listed in the audience.Consumer Financial Insights > Discretionary Spend – Travel Consumer Financial Insights > Discretionary Spend – Jewelry Consumer Financial Insights > Discretionary Spend – Home Furnishings Consumer Financial Insights > Discretionary Spend – Entertainment Consumer Financial Insights > Discretionary Spend – Electronics Consumer Financial Insights > Discretionary Spend – Education Consumer Financial Insights > Discretionary Spend – Donations Consumer Financial Insights > Discretionary Spend – Dining Out Consumer Financial Insights > Discretionary Spend – Total Consumer Financial Insights > Discretionary Spend – Clothing/Apparel Household deposits/balances (FLA/Fair Lending Friendly) – Audiences that include households that have bank deposits balance in six total tiers with Tier 1 being the highest, and Tier 6 being the lowest. Consumer Financial Insights > Household Deposits/Balances Investment Balances (FLA/ Fair Lending Friendly) – Audiences that include consumers who have an investment balance in six total tiers with Tier 1 being the highest, and Tier 6 being the lowest. Consumer Financial Insights > Investment Balances Mortgage refinance (FLA/Fair Lending Friendly) – Predicts the likelihood the consumer is to refinance their mortgage. Consumer Financial Insights > Mortgage Refinance Footnote * “Fair Lending Friendly” indicates data fields that Experian has made available without use of certain demographic attributes that may increase the likelihood of discriminatory practices prohibited by the Fair Housing Act (“FHA”) and Equal Credit Opportunity Act (“ECOA”). These excluded attributes include, but may not be limited to, race, color, religion, national origin, sex, marital status, age, disability, handicap, family status, ancestry, sexual orientation, unfavorable military discharge, and gender. 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To fully take advantage of the benefits of sports advertising, here are the audience segments we recommend targeting to drive engagement and conversion. Sports fans Harnessing the enthusiasm of sports fans can drive powerful engagement and brand loyalty. Align your campaigns with major sporting events, teams, or athletes to tap into the emotional connection fans have with their favorite sports or countries. Here are 10 audience segments that you can activate to target sports fans: Likely to be a sports enthusiast: Lifestyle and Interests (Affinity) > Activities and Entertainment >MLB EnthusiastsNASCAR EnthusiastNBA EnthusiastsNFL EnthusiastsNHL Enthusiasts PGA Tour Enthusiasts Travels to see professional sports: Travel Intent > Activities > Professional Sports Event NEW! Pickleball enthusiast: Retail Shoppers: Purchase Based > Sporting Goods, Apparel > Pickleball Enthusiast NEW! Wilderness sports and camping enthusiasts: Retail Shoppers: Purchase Based > Outdoor Activities > Wilderness Sports and Camping Enthusiasts Worldview WorldView offers immediate access to essential demographic and consumer data using advanced satellite technology and machine learning. Marketers planning campaigns ahead of this summer’s games can use WorldView to understand their audience, optimize distribution, and identify untapped market areas across 90 countries. With WorldView, you can benchmark performance, visualize customer data, and create a consistent global audience strategy for digital activation. This comprehensive solution provides valuable insights for location planning, data enrichment, and targeted digital advertising, without relying on personal information, making it ideal for geo-targeted marketing approaches. Sporting events and travel beyond this summer’s games While this summer’s games are a major draw, there are still many sports fans who may prefer events that aren’t connected to the summer games during this time. You can pair our Travel Intent > Activities > Professional Sports Event audience with our Lifestyle and Interests (Affinity) > Sports and Recreation > Sports Enthusiast audience to target individuals who have expressed interest in attending sporting events or traveling for sports-related activities. We can deliver our syndicated audience segments to 30+ activation platforms, which means we have a solution however you want to consume and use our data. Sports spectators Enhancing the experience of sports spectators can create memorable moments and lasting impressions. Target individuals interested in attending sporting events, promote ticket sales, VIP experiences, and exclusive merchandise to elevate their game-day experience and foster a sense of belonging within the sports community. Here are 7 audience segments that you can activate to target sports spectators: Interested in sports: Lifestyle and Interests (Affinity) > Sports (FLA / Fair Lending Friendly)*Baseball (FLA / Fair Lending Friendly) Football (FLA / Fair Lending Friendly) Visits sports venues: Mobile Location Models > Visits >College Sport VenuesNFL Stadium VisitorsUniversity Stadium College Football Visitor MLB Stadium Visitors You can also develop targeted advertising campaigns promoting travel packages or hotel deals around Paris. Highlight proximity to this summer’s games, special experiences, or exclusive offers for travelers during this summer’s games season. By targeting specific travel preferences and behaviors, you can capture the attention of individuals planning trips around this summer’s games. When you work with Experian, you work with a single data provider that gives you access to audiences across multiple verticals and categories like travel and retail. Sporting goods shoppers You can use Experian audiences to reach consumers interested in sports and fitness ahead of the summer games. Targeting individuals in the market for sports equipment and apparel can help you reach those actively seeking sporting goods. By focusing on this segment, you can increase conversion rates and optimize ad spend by reaching an audience already inclined toward sports and fitness shopping. Here are 6 audience segments that you can activate to target consumers who are spending on sports apparel: NEW! Wears athleisure: Retail Shoppers: Purchase Based > Sporting Goods, Apparel > Athleisure Sportswear Apparel Women's activewear high spenders: Retail Shoppers: Purchase Based > Apparel > Women's Activewear / Yoga: Online High Spenders Men's activewear high spenders: Retail Shoppers: Purchase Based > Apparel > Men's Apparel (Clothing): Men's Activewear: High Spenders Athletic footwear high spenders: Retail Shoppers: Purchase Based > Apparel > Footwear (Shoes): Athletic Footwear: High Spenders Golf equipment frequent spenders: Retail Shoppers: Purchase Based > Sporting Goods, Apparel > Golf Equipment, Apparel, Entertainment Frequent Spenders Sporting goods shoppers: Mobile Location Models > Visits > Sporting Goods Shoppers Athletes For brands catering to athletes and sports enthusiasts, targeting active players is crucial. Offer products, training tips, and motivational content that inspire and empower them to excel in their chosen sports. Here are 5 audience segments that you can activate to target athletes: Likely to play sports: Lifestyle and Interests (Affinity) > Sports and RecreationPlays HockeyPlays Soccer Plays Tennis Likely to play golf: Lifestyle and Interests (Affinity) > Activities and Entertainment > Play Golf NEW! E-motion riders: Retail Shoppers: Purchase Based > Outdoor Activities > EMotion Riders E-Scooters E-Bikes E-Skateboards Influencer marketing campaigns Collaborate with influential athletes or sports personalities to create sponsored content that resonates with sports fans. You can pair our Social media heavy user audience with our Likely to be a sports enthusiast and TrueTouch conversion channel audiences to reach those who are likely to be influenced by endorsements from celebrities or athletes. Targeted advertising in sports with Experian audiences By using Experian's syndicated audiences in sports advertising, you can reach sporting goods shoppers, passionate sports fans, active players, and enthusiastic spectators. Our deep understanding of people in the offline and digital worlds provides you with a persistent linkage of personally identifiable information (PII) data and digital identifiers, ensuring you rich insights, accurate targeting across devices, improved addressability, and measurable advertising. Just as athletes strive for excellence, with the right approach, your advertising in sports initiatives will stand out as champions in the arena of consumer engagement. Can’t find the audience you’re looking for or need a custom audience? Connect with our audience team for more information. Connect with our audience team You can activate our syndicated audiences on-the-shelf of most major platforms. For a full list of Experian's syndicated audiences and activation destinations, download our syndicated audiences guide. Check out other seasonal audiences you can activate today. View now Footnote * “Fair Lending Friendly” indicates data fields that Experian has made available without use of certain demographic attributes that may increase the likelihood of discriminatory practices prohibited by the Fair Housing Act (“FHA”) and Equal Credit Opportunity Act (“ECOA”). These excluded attributes include, but may not be limited to, race, color, religion, national origin, sex, marital status, age, disability, handicap, family status, ancestry, sexual orientation, unfavorable military discharge, and gender. Experian’s provision of Fair Lending Friendly indicators does not constitute legal advice or otherwise assures your compliance with the FHA, ECOA, or any other applicable laws. Clients should seek legal advice with respect to your use of data in connection with lending decisions or application and compliance with applicable laws. Latest posts