The diversification of retail media networks in the US is an opportunity for brands to better understand their high value audiences (HVAs), according to Will Margaritis, SVP of Global Commerce Solutions at Reprise Commerce, in a recent interview with industry analyst Joanna O’Connell, for Beet.TV:
“For a long time, it’s been very Amazon-led, it’s been very Walmart-led, very Target-led. What we’re seeing is a lot of brands understanding what other retailers can do for them and get excited about how to reach deeper into other consumers.”
Retail media has been a hot topic for the advertising industry in 2022, and that trend looks set to continue in 2023 as the economic outlook worsens and retailers seek out new ways to deliver value to shareholders.
Whilst some large organizations are looking for new mergers or acquisitions to drive purchasing power and introduce cost-saving measures, retail media offers another opportunity for revenue outside of consumer sales.
As inflation bites around the world and consumers tighten their spending, retail media could provide much-needed revenue for retailers whilst helping brands to fill in the gaps in their in-house data.
For brands, the challenge will be to find retailers that can offer deeper insights into certain consumers than can be offered by everything stores like Amazon. “If it’s a grocer […] they’re generally a lot more regionalized,” adds Will Margaritis, “they have very different consumers that are coming in, with very different tastes.
Amazon will likely seek to head off competition from other retail media networks over the next twelve months, however, and the recent slew of product announcements at Amazon unBoxed suggests that work is well underway.
Amazon Ads has opened up its Sponsored Display advertising to non-endemic brands, signifying a switch in focus for Amazon ads and a play for a bigger slice of the advertising pie.
New measurement tools have also been introduced to justify ad-spend on Amazon’s platforms, and agencies still have work to do to ensure other retail media networks get the attention they deserve.
“It requires building new tools, it requires building new relationships and it requires training new individuals. At Reprise and IPG, we’ve actually done a lot of this work because we see the value of having fantastic relationships,” Adds Margaritis.
To see more of Will Margaritis’ interview with Beet.TV, please visit the article here.
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