Are you getting the most out of your digital assets? If not, you’re leaving money on the table.
CPG media budgets are changing, and the relationships between grocers and CPGs are changing with them. Brands everywhere are shifting their budgets away from traditional ad buys in favor of a more intentional focus on digital–and the proof is in the numbers. Retail Media revenues are expected to reach more than $75 billion in 2022, up 80% from 2021.
What’s now referred to as “retail media” is nothing new. It’s simply the selling of advertising space on retailer-owned digital platforms such as grocery websites, grocery email campaigns, retailer mobile apps, etc., to national CPGs. What has changed is how many national chains have prioritized this Retail Media revenue and are now fighting for the largest share possible. When the competition is this fierce, all grocery retailers need to make sure their platforms are best positioned to increase shopper engagement and secure this incremental CPG funding.
Webstop has helped regional, and independent grocers build engaging digital platforms for over 20 years, and now they are helping retailers monetize their digital channels. At the recent Retail Media Summit in Chicago, this was the primary topic of discussion. Webstop was in attendance, meeting with 16 national CPGs to discuss the latest strategies that can lead to Retail Media success.
Below are 3 key takeaways from the conference:
Takeaway #1: Prioritize the shopper experience.
Technology has dramatically transformed grocery marketing and given retailers access to an exciting new level of data. This data is undoubtedly important, allowing retailers to learn more about their customers, but it also opens up new opportunities for monetization via CPG funding. With that said, data monetization should never be the only goal.
Oftentimes retailers and other businesses prioritize data at the expense of the overall customer experience. Even with all of the available data, it’s important to maintain a user-friendly website and other digital channels for shoppers. Data-generating advertising programs don’t have to be annoying. When executed correctly and integrated into the overall digital presence, they can be experienced as a helpful guide on the path to purchase.
Takeaway #2: Don’t wait on revenue share; take charge of the revenue generation.
Retailer staff are constantly asked to do more with less, but the sales goals remain the same. The pressure to keep costs down may tempt some to sit back and let third-party Retail Media providers facilitate deals and share the revenues that remain… oftentimes with very little to show for it!
But this is not the only option. Retailers who utilize their CPG relationships and find ways to create incremental revenue growth have the biggest upside. The key is for retailers to stay in control of the revenue generation while relying on Retail Media third parties where technical expertise is required. This way, the retailer holds onto the most important parts of the CPG relationships.
Takeaway #3: Create a Retail Media Team.
Retail marketing continues to transform at a rapid pace, and the processes involved in monetizing digital assets are constantly changing. Put simply, it is an incredibly complex and demanding undertaking, no matter who is in charge.
The retailers who are seeing the biggest Retail Media revenue typically have one thing in common– outside help. A group of experts who are wholly devoted to maintaining everything involved.
Lean on Webstop
Opening up digital revenue streams is becoming mandatory. But starting the process is not easy and will take some resources to get up and running. Luckily Webstop has everything needed to get started. Webstop functions like a retailer’s in-house team of digital marketers, building great experiences that draw in shoppers and monetizing those digital assets at the same time. This frees up the retailer’s internal team to focus on everything else they have on their plates. Less work internally AND more revenue in the long run… it’s a formula for long-term success.
Click the link below to find out how Webstop can best position your organization to maximize Retail Media revenue.