As digital advertising continues to evolve, Retail Media Networks (RMNs) have emerged as a powerful tool for Consumer-Packaged Goods (CPG) brands. These networks provide brands with direct access to first-party retailer data, enabling them to reach shoppers with precision and maximize their return on investment.
In the 29th episode of Point of Purchase by geekspeak Commerce, host Isaac Wanzama explored the role of RMNs in modern advertising with expert insights from Tricia Williams, Managing Partner & Client Success Leader, and Roger D’Souza, Digital Marketing Manager. Together, they broke down how RMNs work, their benefits, and key strategies for success.
Watch the full episode here, or read on to learn the key takeaways from the conversation.
How Retailers Are Leveraging Smart Technology
Today’s shoppers expect seamless and highly relevant advertising experiences. As Isaac, Tricia, and Roger discuss, RMNs leverage first-party shopper data to deliver personalized, highly targeted ads at the point of purchase.
Roger explains, “Retail Media Networks (RMNs) are platforms that are owned and operated by the retailers themselves. They allow brands to place ads on their properties. This could include their websites, their apps, or even in some cases, in-store display screens. These networks leverage first-party shopper data, which allows advertisers to deliver highly targeted and highly relevant ads mostly at the point of purchase.”
Retailers utilizing RMNs are not only personalizing the shopping experience but also refining their ad strategies to ensure brands maximize their return on investment through precise audience targeting. This opposes traditional advertising methods, as Roger says: “Traditional pay-per-click ad campaigns on platforms like Google focus on driving traffic. They operate on a broader scale and they are focused on driving traffic to a particular website or landing page that allow that conversion to happen.”
Not only that, “Over the past few years, tools like Profitero, CommerceIQ, Shalion, DataWeave and others essentially crawl retailer sites and they pull back data on things like content accuracy, stock availability, pricing, assortment, and a lot of other data points.” says Tricia Williams.
The Future of Customer Engagement Through RMNs
One of the biggest advantages of RMNs is their ability to enhance customer engagement by delivering relevant ads precisely when shoppers are most likely to convert. AI-driven tools enable brands to tailor messaging based on browsing behavior, purchase history, and even location-based data.
Isaac, Tricia, and Roger highlight some of the most effective strategies used in RMNs:
- Audience Segmentation: RMNs analyze customer behavior to identify and target specific audience segments with the most relevant messaging.
- Ad Performance Optimization: AI continuously adjusts campaigns based on real-time data, ensuring better engagement and conversions.
- Data-Driven Decision Making: RMNs enhance the ability to track sales impact, providing brands with clear insights into which campaigns are driving results.
Tricia notes, “RMNs really lend themselves well to that lower funnel activity. It’s typically all about driving sales, but it can be used for awareness as well. So whether there’s a new brand entering a new category or a brand has a new innovation or even a new flavour variation, we can certainly use RMNs to spread awareness about these items. The other thing I would say is it’s a great place to test and learn, as we spoke about earlier. RMNs make it really easy to do so at low risk so campaigns are really flexible. They’re easy to adjust once they’re live.”
Key Considerations for Brands Investing in RMNs
For brands looking to maximize their RMN strategy, several key considerations must be considered:
- Managed vs. Self-Serve Models: Brands must decide whether to control their campaigns internally or rely on retailer-managed solutions.
- Budget Allocation: Finding the right balance in ad spend across different RMNs is crucial for maximizing impact.
- Measuring ROI Effectively: While RMNs provide deep insights, brands must analyze data carefully to optimize their approach.
Roger points out, “Compared to traditional pay-per-click ad campaigns, RMNs offer a direct path to conversion and often it’s more effective and cheaper.”
What’s Next? The Future of RMNs in Digital Advertising
As RMNs continue to gain traction, their role in digital advertising will expand. Isaac, Tricia, and Roger discuss several emerging trends that brands should watch:
- Advanced Attribution Models: RMNs will refine how brands track customer journeys, providing better visibility into ad effectiveness.
- Automated Budget Allocation: AI-driven tools will help brands distribute ad spend more efficiently across multiple channels.
- Deeper Customer Insights: Advancements in AI will offer even greater analytics, enabling brands to personalize their strategies further.
As Tricia puts it, “RMNs are still fairly new or young in Canada. So there are plenty of opportunities to grow while competition is still relatively low in comparison to the US. I think there are still lots of good things to come and the existing platforms are always evolving and expanding their capabilities as well. So they’re going to keep us on our toes, but they also present great opportunities for growth.”
Final Thoughts
Retail Media Networks are transforming how CPG brands connect with consumers. By leveraging first-party data, AI-driven tools, and real-time analytics, brands can create highly effective advertising campaigns that drive both sales and awareness.
To learn more about how RMNs can enhance your advertising strategy, watch the full episode of Point of Purchase here.