Brands Take the Reins
The Power Shift in Retail Media Networks
In the ever-evolving world of retail media, there's a seismic shift happening. Once upon a time, retailers held all the cards, thanks to their treasure trove of first-party data. But the tables are turning. Brands—those retail suppliers once playing catch-up—are now leading the innovation charge, sometimes even outpacing retailers in driving shopper engagement.
In this article, we explore why and how brands are taking back control of their messaging in their most important sales channel.
The Rise of Brand Power
As brands pour more investments into retail media networks, they're learning what really works. It's not just about being present; it's about forming deep, meaningful connections with consumers at the point of purchase. This shift is transforming how brands control their messaging in their most crucial sales channels.
Innovation Born from Necessity
The retail media landscape is becoming more fragmented, with new players entering the scene. This fragmentation makes it tough for brands to push back against demands for increased investment. Greg Carlucci from Gartner, a research and advisory company, highlights this frustration, noting how brands struggle to quantify their investments across different retailers effectively.
To navigate this complexity, brands are becoming more strategic with their spending. They're diving into media-mix modeling for retail media investments and pushing for innovative ways to reach consumers at the point of purchase.
“Most retail media networks build their core business off search and display ads,” says Drew Cashmore, retail strategist and former Walmart executive. “Search and display ads are transactional ways of reaching the consumer, similar to the flyer, but many consumer brands are demanding more creative approaches to help improve shopper confidence.”
“Brands are demanding more creative approaches to help improve shopper confidence.”
Especially for big-ticket online purchases, shoppers are looking for greater guidance than what a simple item and price message can offer. Brands are now heavily influencing that shift within retail, recognizing that their retail media network partners don’t always move fast enough to keep up with changing consumer behavior. For the retail media networks that are innovating, this shift presents new opportunities for growth.
Standing Out with Differentiation
Retail media networks that embrace innovation are reaping the benefits. Offering video solutions at the point of purchase is one way to stand out, but not all video content is created equal. Consumers want authenticity and credible voices guiding their purchases.
Cashmore notes that differentiated retail media networks are offering video solutions at the point of purchase, but not all video is created equal. “Consumers are becoming blind to a brand’s video or a random stranger talking about a product on retail websites—they’re looking to better understand the product and be guided by a credible or authentic voice.”
He sees a new era of retail media solutions that modify existing approaches to engaging and influencing consumers, making them more relevant, impactful, and trustworthy in a retail environment.
This differentiation in creative and tactical approach ultimately helps the collective growth of the retailer, its retail media business, and its partner brands. It’s rooted in scalable, efficient, custom content designed specifically for the point of purchase.
Tailored Content for Every Step
Insights from Publicis reveal that the days of recycling content across platforms are fading. Instead, there's a growing demand for tailored content that resonates at different stages of the consumer journey. Eric Sheinkop, Co-Founder and CEO of The Desire Company, notes that this was a theme at Cannes Lions this year. He emphasizes that just as brands once adapted to create custom content for social media, they are now applying the same strategy to retail media. Generic content on product display pages often fails to engage. Effective retail media hinges on unique, context-specific content that builds trust and improves conversions.
Brands at the Helm of Innovation
Brands are proving to be more agile and responsive to market trends than traditional agencies. By integrating advanced analytics, AI technologies, and creative content initiatives, brands are enhancing their visibility and establishing direct connections with consumers. This agility drives meaningful interactions and conversions.
While traditional agencies still play a crucial role in specialized services, they sometimes struggle to keep up with the innovative strides made by brands. Brands are leveraging their in-house expertise to drive creative and tech-enabled solutions within retail media networks, setting new standards for consumer engagement.
Conclusion: A New Era of Retail Media
The shift of power from retailers to brands is ushering in a new era of innovation and customization in retail media networks. Brands, armed with consumer insights, technology integration, and creative content, are leading the charge. As the demand for personalized consumer experiences grows, brands are poised to continue driving the evolution of retail advertising, setting new benchmarks for effective engagement throughout the customer journey.
At The Desire Company, we witness this shift firsthand—a reimagining of the standard model that benefits retailers, brands, and consumers alike. Central to this transformation is the importance of trust in a retail environment. Our unique approach to efficient content creation at the point of purchase enables retail media businesses to differentiate themselves and lead the industry.
