Innovation in Retail Media Networks: A New Era in Marketing Strategies
In the bustling city of Atlanta, a wave of change in the marketing world is taking shape, driven by the emergence and evolution of retail media networks. As companies adapt to the new landscape of consumer behavior shaped significantly by the pandemic, marketing strategies too are becoming more sophisticated. One important voice in this discourse is a senior director at a leading consumer packaged goods (CPG) company, who has been at the forefront of this transformation.
Understanding Retail Media Networks
Retail media networks have seen remarkable growth over the past few years, especially during and after the thick of the pandemic. Consumers have rapidly adopted practices such as curbside pickup, home delivery, and in-store fulfillment, which seem to have become ingrained habits. As Paras Shah, the senior director of digital media at Georgia-Pacific, quipped during a recent panel discussion, “I’m not sure if you heard, but there was a toilet paper shortage in 2020.” This humorous remark underscores the unexpected challenges CPG marketers faced and the need for nimble strategies.
Shah’s team manages various components of Georgia-Pacific’s digital marketing, and with the surge in retail media, they’ve had to rethink their omnichannel approaches. The way consumers engage with brands now heavily relies on tailored advertising strategies, and retail media networks offer a treasure trove of data that helps brands tailor their messages to meet the immediate needs of shoppers.
The Power of Data
Data has emerged as the backbone of effective marketing strategies. Shah emphasizes that marketers can now target consumers far more effectively by analyzing purchase histories, browsing patterns, and personal preferences. This level of precision wasn’t feasible before the pandemic when retail media lacked the sophisticated structure it holds today.
As retail media networks continue to evolve, clicks turn into conversions, making the shopping experience more seamless. Ads are now being embedded directly within the shopping process, such as through retail search ads or in-store digital signage, which are specifically designed to engage consumers right when they are ready to make a purchase.
Connecting with Consumers
Retail media networks are also facilitating engagement through various touchpoints beyond traditional platforms. With the advent of off-site shoppable ads appearing on social media like Instagram, and digital streaming services, marketers can now engage effectively with consumers when they are most receptive. “Meeting consumers at the moment of intent is critical for improving convenience,” Shah notes.
The In-house Advantage
One of the competitive advantages Georgia-Pacific boasts is its in-house marketing capability. Shah mentions how their in-house team collaborates with different departments—like sales and finance—to craft and execute successful marketing strategies. This unified approach allows for greater agility, and insights are shared in real-time, ensuring the company can quickly adapt to what’s working and what’s not.
The Challenge of Measurement
However, measuring the success of retail media spending is not without its challenges. Shah points out that there is no standardized method for assessing the incremental benefits of these investments. As a solution, Georgia-Pacific utilizes its own media mix modeling to gauge effectiveness, offering a “single source of truth” for determining impact.
Navigating Retail Media Networks
While retail media networks are gaining traction, Shah warns marketers about the pitfalls of becoming too dependent on these platforms. He suggests being deliberate in aligning marketing strategies with broader business objectives. Establishing key performance indicators (KPIs) that truly reflect the aims of both marketing and sales teams is crucial.
“I always like to remind every retail media network, that is your full funnel, not my full funnel,” he relays, highlighting the importance of a strategic approach when it comes to retail media investments. Marketers should avoid blindly following the frameworks of retail media networks without ensuring these tactics lead to tangible business benefits.
The Future of Retail Media
As the landscape evolves, businesses must strike a balance between efficiency and effectiveness in their marketing strategies. By flipping the funnel—starting with targeting consumers at the bottom who are ready to buy—marketers can better guide shoppers through their purchasing journey.
At the heart of this transition is a reassuring focus on tailored, data-driven strategies aimed at fostering genuine connections with consumers. The rise of retail media networks illustrates an exciting, albeit challenging, new chapter in retail marketing, one that experts like Paras Shah continue to unfold.
