Retail media networks (RMNs) are changing the way retailers and brands engage with customers. By leveraging both online and in-store platforms, these networks create personalized, impactful advertising experiences while providing retailers with new revenue streams. While larger players like Walmart and Target dominate the headlines, mid-size chains with hundreds of stores have a significant opportunity to carve out their place in the RMN space. These retailers, with their unique regional strengths and loyal customer bases, can develop scalable, cost-effective retail media networks that deliver value to both customers and brand partners.
Mid-size retail chains can implement retail media networks, overcome challenges, and leverage their distinct advantages to compete effectively in the evolving retail landscape. It just takes some education, strategizing and planning.
Implementing Omnichannel Retail Media Networks
Building a retail media network that bridges the gap between online and in-store experiences requires careful planning, robust technology, and a focus on engaging the customer. Mid-size retailers must ensure their infrastructure supports seamless, personalized advertising across all touchpoints. Although their scale may differ from larger players, mid-size chains can leverage cost-effective solutions and localized strategies to compete effectively.
Technology Infrastructure Requirements
Network Capacity and Bandwidth: A reliable network infrastructure is essential for delivering content through in-store radio, digital signage, kiosks, or other touchpoints. Retailers must ensure their networks can handle the bandwidth required for these platforms while maintaining high-quality Wi-Fi coverage for seamless customer experiences.
And it goes without saying that capturing and using all available rich customer data is necessary to design programs that benefit both brands and shoppers.
Integrated Data Management Systems: The backbone of any RMN is a robust data management system that consolidates customer information across touchpoints, including online browsing, in-store purchases, and mobile app interactions. These systems enable retailers to create unified customer profiles, allowing for personalized advertising and informed decision-making.
Cross-Channel Attribution Tools: Retailers need tools that track customer interactions across channels to measure the effectiveness of advertising campaigns. Cross-channel attribution models help identify which campaigns drive sales or engagement, ensuring marketing resources are used efficiently.
In-Store Technologies
Digital Signage and Interactive Kiosks: Dynamic in-store advertising opportunities, such as digital displays and interactive kiosks, allow retailers to deliver tailored promotions and highlight complementary products. These tools enhance the shopping experience by providing real-time updates on inventory or personalized offers.
Mobile App Integration: Integrating mobile apps with physical stores can boost engagement by offering features like indoor navigation, exclusive in-store promotions, or recommendations based on previous online behavior. This seamless connection enhances the customer journey.
Online-to-Offline Strategies
Click-and-Collect Services: Click-and-collect bridges digital and physical shopping. Customers can browse and purchase online, then pick up in-store, providing a valuable touchpoint for personalized promotions or cross-selling opportunities.
QR Codes for In-Store Product Information: QR codes on packaging or shelves allow customers to access detailed product information, reviews, and recommendations instantly. This strategy merges the convenience of digital research with the tactile benefits of in-store shopping.
By investing in these elements, mid-size retailers can build robust RMNs that improve advertising effectiveness while elevating the customer experience.
Challenges and Considerations
While RMNs offer significant opportunities, retailers will face some challenges and need to navigate those thoughtfully. These challenges are not unique to RMNs but are common across any data-driven solutions like AI and analytics.
Data Privacy and Security
Ensuring Compliance with Regulations: Retailers handle large volumes of customer data across channels, making compliance with data privacy laws such as GDPR and CCPA essential. Retailers must implement systems that ensure data is collected, stored, and used in compliance with regulations to avoid legal and reputational risks.
Building Customer Trust: Transparency about how customer data is used is critical. Clear communication, along with opt-in and opt-out options, helps build trust and encourages customer participation in RMN programs.
Measurement and Attribution
Tracking Customer Journeys Across Touchpoints: Customer journeys in an omnichannel environment are rarely linear. Retailers need tools that can track interactions across digital and physical touchpoints, providing insights into how these channels influence purchasing decisions.
Attributing Conversions: Attribution remains a challenge in omnichannel environments. Retailers should adopt models that account for the combined impact of online and offline efforts, helping them allocate resources effectively and maximize ROI.
Organizational Alignment
Breaking Down Silos: Successful retail media networks require collaboration between digital and physical retail teams. Sharing data, insights, and objectives across departments ensures a cohesive customer experience.
Unified Strategies Across Channels: Leadership must drive a single vision for RMNs, to ensure marketing, operations, IT, and sales teams are aligned. Clear goals and integrated processes are key to creating a seamless omnichannel strategy.
Expanding Beyond Online Advertising
Mid-size retailers can explore opportunities that extend beyond traditional online ads:
- In-Store Experiences: Use physical spaces as advertising platforms with digital displays and interactive kiosks.
- Connected TV and Audio Streaming: Engage customers through emerging formats like connected TV ads and audio streaming.
- Video Marketing: Leverage video content to capitalize on its growing popularity across digital channels.
Technological Advancements Shaping RMNs
Technological Advancements Shaping RMNsThe following will help form the future of RMNs:
- AI Integration: Generative AI can enhance targeting and ad relevance, creating more personalized experiences.
- Advanced Analytics: Improved tools for measuring campaign performance provide clearer ROI insights.
- Enhanced Targeting: With these programs, brands can take advantage of having access to their own data and leverage that design to create highly personalized advertising campaigns.
Why RMNs Make Sense for Mid-Size Retailers
Mid-size chains with hundreds of locations have distinct advantages in the RMN space:
- Localized Strengths: These retailers can focus on regional or niche advertising opportunities, leveraging their deep understanding of local customer preferences.
- Revenue Diversification: RMNs provide an additional revenue stream, supporting other business areas such as technology investments.
- Competitive Differentiation: Tailored, high-impact advertising opportunities help smaller chains stand out from larger competitors.
- Scalability: Starting small allows these chains to refine their strategies, laying the foundation for growth.
Next Steps
Retail media networks are not just for retail giants. Mid-size chains can successfully implement RMNs by leveraging scalable technology, focusing on localized strategies, and addressing challenges head-on. By investing in RMNs, these retailers can create impactful advertising opportunities, enhance the customer experience, and drive revenue growth.
With careful planning and the right tools, mid-size retailers can turn their unique strengths into a winning strategy in the RMN space.
If you’d like to discuss deploying your retail media network, drop us a note to schedule a call. We can help with RMN partners and ensuring your infrastructure and retail sites are prepared.