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Retail media

Retail media is marketing to consumers at or near their point of purchase, or point of choice between competing brands or products. Common techniques include in-store advertising, online advertising, sampling, loyalty cards and coupons or vouchers.

The planning and use of retail media is a key component in the delivery of shopper marketing campaigns.

Retail media channels have become established as important for promoting goods and services at or near or even further beyond the points of purchase and consumption. Retail media is now being taken more seriously by most traditional media agencies.

Retail media originated as media available within the retail environment. This has now developed into a media discipline in its own right as new retail media channels have been added. Retail media now reaches outside the retail environment to encompass media channels such loyalty program marketing, coupons and door drops, fleet media (retailer's fleet vehicles, etc.).

Though many retail media channels are found inside the retailer's store/environment, the media channels themselves are not always "owned" or operated by retailers. Many retail media channels are operated independently by specialist media companies who also manage other media outside the retail environment.

With the deprecation of the third-party tracking cookie, retail media's use of first-party data has made it an appealing option for targeted advertising. Retail media advertising spending represented approximately 21% of global digital advertising spending as of 2024.

Retail media channels are to a large extent defined by the context of the retailer. The majority of retail media channels reach their audience at or near the point of purchase or point of choice. Research suggests media placed at or near the points of choice/purchase can have a significant impact on purchasing decisions (PoS).1 Media owners and agencies have learnt more in recent years about the value of retail media channels.

There is potential for conflict of interest between the retailer selling the media and the CPG/FMCG buying the media, which is why retailers often engage a third-party media owner to operate and sell media space on their behalf.

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