Retail Media Networks: A Deep Dive into Tomorrow’s Marketing Revolution

Here in the city that never sleeps, emerging trends like retail media networks (RMNs) create quite the buzz. They connect retailers with consumer-packaged goods (CPG) brands, thanks to the techies who make it all possible. So, what’s the deal, and how do these partnerships make magic happen? Let’s dive in, NYC style.

The Scene at the Retail Media Network Forum in Chicago

Leaders of all stripes assembled at CSP’s inaugural Retail Media Network Forum in Chicago this past October. Newbies wanted to grasp the basics, while seasoned vets looked to polish their approach. Meanwhile, some savvy convenience-store retailers, like Wawa, already have a retail media network under their belt.

What Is a Retail Media Network?

Imagine this: a retailer taking consumer data and serving up ads so relevant, they feel like they know you better than your own mom. That’s the gist of RMNs—where data meets ads with a sprinkle of CPG collaboration. Whether in stores, online, or via apps, it’s all about making the sale. As Michelle Dooley of NexChapter puts it, it’s about leveraging all that first-party data to paint a picture so captivating, consumers can’t look away.

The Rise and Rise of Retail Media

Listen, retail media spend in the U.S.A. isn’t just sipping lattes; it’s blowing up! By 2024, we’re talking $59.6 billion big, thanks to that growing trend. More customers pouring into stores, filling their baskets, and companies shelling out dough to get in on this action? That’s the wave that’s hitting us hard and fast.

CEFCO’s Take on Retail Media Networks

Over in Temple, Texas, CEFCO is sculpting its own RMN wonderland. Rachel Puepke, their VP of marketing, credits their advanced loyalty program as the foundation. Here’s the kicker: they’re fusing digital pumps, vendor data, and good ol’ strategy to craft their RMN masterpiece.

It Starts With Data

Retailers with a treasure trove of customer purchase data hold the golden ticket. Details like purchase size, product loyalty, and the best times to strike make RMNs a strategic win. “The more identified data you have, the larger the opportunity for your retail media network,” Dooley strategically points out. It allows tailored marketing that genuinely connects with consumers.

Types of Data: What You’re Working With

Here’s a quick breakdown, in a no-nonsense NYC way:

• Zero-Party Data: Customers voluntarily share this.
• First-Party Data: Collected from direct interactions.
• Second-Party Data: Grabbed from trusted partners.
• Third-Party Data: Be wary! It’s aggregated and disconnected.

Strategizing the Desired Outcome

When New Yorkers envision an RMN strategy, it’s all about precision and prowess. Set the goals, knowing who’s in your corner and what success looks like. For Art Sebastian of NexChapter, it’s about crafting a plan that integrates marketing with merchandising to sprinkle some magic on those consumer interactions.

Benefits for Retailers and Brands

Here’s the playbook on why RMNs hold gold for everyone involved:

For Retailers:

• Boosts customer engagement
• Elevates the shopping experience
• Opens doors to fresh funding
• Provides alternative revenue paths

For Brand Advertisers:

• Direct access to first-party data
• Ownership over media spaces
• Clear-cut, measurable outcomes
• Strategic business collaborations

CPG Brands and Tech Companies: The Dynamic Duo

RMNs open a vault of insights for CPGs—purchase history, shopper habits, age, you name it. Joe Workman from Black Buffalo Inc. sees tech partners as the linchpin. They’re the ones who decode the consumer puzzle. When brands see measurable returns, they’re ready to invest more—giving customers relevant offers and retailers, well, more sales.

Setting the Advertising Stage

Once data flows, advertising must take center stage. Think of it in three acts, as Mike Templeton from NexChapter tells it: in-store, brand-led interactions via your app or website, and the broader, glitzy world of social media and TV. Darrin Samaha over at Yesway sees opportunity in integrating these seamlessly, making existing promotions part of something greater.

Final Thoughts: NYC Style

RMNs form a triangle—retailers, brands, and those whiz-kid tech providers. In the world of RMNs, personalization is the keyword, and as Bret Thurston of J.M. Smucker Co says, it “is a trend that is here to stay.” Here in the Big Apple, we savor these insights. They’re not just the future—they’re the now, serving up a potent blend of value, relevance, and action for everyone involved.

Want more? Become a CSP member and stay ahead of the curve. After all, in New York, knowledge is power, and power is everything.