Retail Media: The Future of Ecommerce for Brands and Retailers

Retail Media: The Future of Ecommerce for Brands and Retailers

In a digitally transforming world, ecommerce solidifies itself as a crucial sales channel for businesses of all sizes. However, with increasing competition and saturation of traditional marketing channels, finding new ways to stand out and reach the target audience is essential.

It is in this scenario that retail media emerges as the third wave of digital marketing, offering a unique opportunity for brands and retailers to boost their sales and build more enduring relationships with consumers.

But What Exactly is Retail Media?

Retail media, also known as online retail advertising, is a strategy that allows brands to advertise their products directly on retailers' online sales channels, such as marketplaces, ecommerce websites, and apps.

This means that ads are displayed in a familiar and trustworthy environment for consumers, increasing the chances of conversion.

Benefits for Brands

• Precise Target Audience Reach: Advertise to consumers who are already inclined to buy products from your category, increasing the relevance of your messages.
• Increased Visibility and Branding: Showcase your products in a high-visibility environment, reinforcing your brand and building recognition.
• Scalable Personalization: Use browsing and purchase data to create personalized and relevant ads for each consumer.
• Accurate ROI Measurement: Track the results of your campaigns in real-time and optimize your investment strategically.

Benefits for Retailers

• Provides Incremental Revenue: Monetize your online sales channels by selling advertising space to relevant brands.
• Improved Customer Experience: Offer personalized and relevant ads that add value to the consumer's shopping experience.
• Increased Engagement: Encourage consumers to explore new products and categories, driving sales across the site.
• Strengthening Brand Relationships: Create strategic partnerships with brands that complement your products and services.

The Unstoppable Rise of Retail Media in Brazil

Retail media is still in a growth phase in Brazil but already presents enormous potential for the ecommerce market. Companies like Grupo Pão de Açúcar, Pague Menos, and Amazon recognize the importance of this strategy and are investing in its implementation.

According to InfoMoney, last year, Grupo Pão de Açúcar established a division dedicated to this goal and recorded an 80% increase in revenue from advertising compared to 2022. While the value has not been publicly disclosed, the company's goal for 2024 is to expand the figure achieved in 2023 by at least 45%.

According to Alberto Serrentino, founder of Varese Retail, retail media is already showing faster growth than previous ad and social strategies. This trend is expected to intensify in the coming years, making retail media an indispensable tool for the success of Brazilian ecommerce.

Insights for Success with Retail Media

• Define Your Objectives: Determine what you want to achieve with your retail media campaigns, whether it's increasing conversions, generating awareness, or driving consideration.
• Choose the Right Platform: There are several retail media platforms available in the market. Choose the one that best suits your needs and budget.
• Segment Your Audience: Use browsing and purchase data to segment your target audience and create personalized and relevant ads.
• Create Creative Ads: Use high-quality images and videos that capture consumers' attention and convey your message effectively.
• Track Your Results: Monitor the performance of your campaigns in real-time and make adjustments as necessary to optimize ROI.

Accelerate Your Sales: Conquer Retail with Retail Media

Retail media is a powerful tool that can help brands and retailers achieve their marketing and sales goals in ecommerce. By investing in a well-planned and executed retail media strategy, you will position your company for success in the future of ecommerce.

Remember: retail media is still developing in Brazil, which means there is a great opportunity for companies that are pioneers in adopting this strategy.