Can retail media be used for brand building, and how?

Historically, brand building has suffered a major deprioritisation as more and more marketers focused their budget on performance marketing and quick low-funnel conversion instead of long-term building for success. For example, 85% of retail media budgets are still invested in sponsored search.

Yes, investing in brand marketing gives you a lower return in the short term, but it's proven repeatedly that the long-term gains of combining brand and performance marketing are much stronger than choosing one or the other.

Could this way of thinking be now slowly changing, with more and more senior marketing chiefs talking about this challenge? Could Retail media be one of the channels to be used to overcome this separation?

Retail Media is a subset of Commerce Media, and in short, it's a type of advertising that uses the e-commerce platform's first-party data and provides advertisers with a unique opportunity to offer personalised messaging to shoppers with purchase intent near the point of purchase.

With retail media becoming a stronger consideration in every brand's strategy, and budgets being moved from other channels, it comes to the question - can retail media be used as a brand-building tactic, and if yes - how?

In this post, we will review some of the benefits of retail media, which can be used to support long-term brand awareness.

Increasing Brand Visibility - If creativity is applied throughout the end-to-end consumer journey, brands have a real opportunity to bridge the gap between performance and brand and become first-in-mind for their customers. Off and on-site display and CTV advertising are retail media capabilities that can serve as brand-building tactics, utilising the precious retailer's first-party audience data, giving the advertisers the opportunity to stay within their future shopper's mindset creatively.

Product Education - Retailers constantly introduce new creative content elements on their sites to make the platforms more engaging for consumers. A perfect example is Amazon, with continually evolving brand store functionalities, brand story layouts, and premium A+.

Let's not forget sponsored video ads, which have more than double the CTR compared to the static sponsored product ad. If leveraged correctly and supported by paid media, these content elements can be powerful education and discovery tools for brands in the e-commerce space.

Advanced targeting capabilities - Retail media offers valuable targeting capabilities, which enable businesses to reach specific customer segments that align with their brand and product offerings. Combining this with consumer behaviour insights, advertisers can create campaigns that resonate with their target audience and tailor them to the specific e-commerce platform. By delivering personalised messages to relevant consumers, businesses can establish stronger connections, drive engagement, and ultimately build brand loyalty.

Which, as a consequence, can lead to:

Influencing Consumer Behaviour - By strategically placing advertisements at various touchpoints throughout the customer journey, businesses can guide consumers towards their brand offerings. This influence can range from highlighting unique features and benefits to promoting limited-time offers or exclusive discounts. By tapping into retail platforms inherent trust and credibility, brands can significantly impact consumer decision-making and eventually foster the desired brand preference and loyalty.

Cross-selling and upselling - Getting new-to-brand customers is crucial for brand growth, but keeping these customers and expanding their use of the brand's product is what ultimately delivers long-term profit. Retail platforms often offer cross-selling and upselling capabilities, enabling businesses to promote related or complementary products to customers. By strategically utilising these opportunities, brands can not only increase their sales but also enhance the overall customer experience by helping them discover new products and deepen their engagement with the brand.

Collaboration with Retail Partners: Collaborating with retail partners can be an effective brand-building strategy through retail media. By forming strategic partnerships, brands can gain access to additional advertising opportunities, exclusive placements, and enhanced visibility within retail platforms. Joint marketing efforts with retail partners can extend the reach of brand messages, tap into the partner's existing customer base, and create a win-win scenario for both parties involved.

The above are only a few examples of how retail media can be used for brand-building purposes. Retail media presents a valuable opportunity to leverage the reach and influence of retail platforms to enhance brand visibility. By incorporating retail media into marketing strategies, businesses can unlock new avenues for brand growth and position themselves for long-term success in today's dynamic retail landscape.