Only invest if eCom ready – Before investing in any retail media, SKUs must have strong operational health. This includes sufficient inventory, profitability, competitive pricing and positive ratings/reviews. Content serves both the search algorithms and the consumer’s understanding of the product.
Retail Media is still New– The state of retail media is exciting but has challenges from connectivity and developing the right talent with expertise to creating the right structures and processes to manage and evaluate retail media holistically.
Retail Media is High Profit for Retailers – Retailers are aggressively driving retail media because it is a critical opportunity to optimize their capabilities and diversity their revenue stream so they remain competitive.
Not every RMN is the same– Work with your media team to identify priority business objectives and understand retailer capabilities, success metrics and data availability. RMN capabilities vary widely.
Objectives drive measurement– It’s important to identify the objectives and align the appropriate KPIs to measure success and inform campaign optimizations. Not all retailers provide incrementality, which is table stakes for commerce.
Test and learn is mandatory– Each retail media tactic plays a different role in the marketing funnel and works best with a blend of event and always on campaigns. Marketers must test and learn to optimize the right tactics.
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