Retail Media Networks (RMNs) are acting as the key to unlock the gate to e-commerce. With successful platforms like Amazon, companies are increasing their marketing budgets on RMNs to maximize the relationship between ad view and product purchase. However, retailers and advertisers need to assess the opportunities, sustainability, competition, and shift in trends to see if an RMN is the right advertising channel for their brands. The following are 5 myths in retail media:
- Retail media is an Amazon-only story: Companies should diversify into other RMN’s to target a unique audience.
- RMN is a CPG-focused phenomenon: Consumers are buying electronics, beauty and health products, clothing, luxury goods, and more on RMNs.
- RMN spend comes from dollars retailers already earn: Spend comes from all sources like net spend and reinvestment of brand and performance budgets.
- RMNs are mainly a substitute for lower-funnel or shopper marketing: Brand building is equally important.
- Enabling advertisers to self-serve RMNs a major competitive advantage: Other factors like performance, access to audiences, and ease of working with the RMN crucial to have a competitive advantage.
These 5 myths should not deter an organization from using an RMN. Develop a plan to differentiate your company from the competition and get your marketing, technology, data, media, and finance teams together to create a strong and effective campaign.