3 questions to ask before working with RMNs

Plus: Challenges advertisers are facing and how retail media networks can solve them NOVEMBER 6, 2023 [3 questions brands should ask before working with retail media networks]( The retail media landscape is vast—and growing. Brands can’t work with every retail media network (RMN), but they should find the right ones for their objectives. That starts with asking the right questions. Your brand likely won’t have the same resources that an RMN can offer, so [building strong partnerships is vital](. “Nestlé is not a technology company,” Carolyn Han, senior manager of digital media and audience strategy at Nestlé USA, said at [Advertising Week New York 2023](. “So in terms of evaluating scalable measurement solutions, [for us] this means the correct partners [have solutions] for identity resolution and for targeting.” Here are some questions to consider before working with an RMN. 1. Can you deliver the metrics my brand prioritizes? If you’re feeling overwhelmed by the volume of data, look at what’s the most important for your brand rather than taking on every channel, every measurement, every option, said Kristina Ciampi, head of measurement, go-to-market at Amazon. “Question specifically how is it that we’re going to get and prove success,” said Han, whether that be [ROI, return on ad spend, incremental sales lift, brand awareness](, or something else. Use that objective to determine which RMNs to work with, the cadence of insights needed, and the level of granularity required for understanding campaign effectiveness. Watch out for inconsistencies within methodology across RMNs, Han warned. For example, when focusing on a metric like sales lift, question RMNs to understand if that metric is incremental, household, or something else. Story continues below. 2. Can you marry in-store and on-site data? Despite 23.2% growth in US omnichannel retail media ad spend YoY, ecommerce still accounts for just 15.6% of all retail sales, according to our forecast. That figure dips to 7.1% when it comes to food and beverage. “A lot of CPG [consumer packaged goods] companies, specifically, [we] don’t have transactional data at our fingertips. We don’t have a lot of D2C specifically with our brands,” said Han. That means brands like Nestlé need to ask RMNs if they have measurement solutions that account for in-store purchases, so brands can understand how online ads contribute to [in-store sales]( and vice versa. “Not only do they have to provide seamless and frictionless cross-channel experiences, but they have to be able to measure accurately across all of these points as well,” said Amazon’s Ciampi. 3. Can you deliver data while campaigns are in-flight? Retail media data can’t wait until after campaigns. Getting data in as close to real time [helps retailers innovate while campaigns are in action](, in order to emphasize what is working and tweak what isn’t, said Jeffrey Cohen, tech evangelist at Amazon Ads. [Read online]( [Authenticity is key: Reaching the Gen Z consumer]( Gen Z is redefining family, community, and what’s expected from the shopping journey. Brands will need to meet these driven, digital natives where they are with dynamic media experiences to capture and retain loyalty. This article was contributed by Roundel. [Authenticity is key: Reaching the Gen Z consumer | Sponsored Content]( [Keep reading]( [3 challenges advertisers are facing and how retail media networks can solve them]( Ninety-one percent of US advertisers plan to maintain or increase their investment in retail data in the next few years, according to data from The Trade Desk Intelligence. Despite this, there are a handful of challenges that could hinder potential investment. Here are some of advertisers’ biggest barriers and how retail media networks (RMNs) can help to reduce them. 1. Advertisers only see retail media as a lower-funnel tactic The stat: 61% US marketers said the top challenge involved in using RMNs is that they’re only effective for lower-funnel marketing, the top challenge cited in The Trade Desk Intelligence’s research. The solution: RMNs need to evolve their ad capabilities beyond search and display toward upper-funnel channels like social or TV. This may require some retailers to recruit help from third-party partners that are more familiar with targeting and measuring campaigns across those channels. 2. Advertisers want more access and control The stat: Nearly all US advertisers (95%) say that the walled garden environments of RMNs are a challenge, but 63% say that “a centralized self-service platform that includes integrated planning and buying tools” would be a motivating factor when activating retail audiences or measurement on a demand-side platform, per The Trade Desk Intelligence. The solution: Begin building out self-service platforms that give advertisers more control over their campaigns, from planning and activating to measurement. Look to [The Kroger Co.]( or [Walgreens]( for examples of what that can look like. 3. Advertisers are feeling overwhelmed by the number of potential RMN partners The stat: 57% of US advertisers say they’re willing to work with a maximum of four retail data partners, according to The Trade Desk Intelligence. The same percentage say they prioritize working with the biggest and/or most relevant RMNs. The solution: It’s all about differentiation and standing out from the competition. RMNs should consider advertiser pain points, like the ones listed above, and how they can address them. Need some inspiration? Lack of campaign performance visibility/transparency, lack of interoperability, and increasing costs were also cited as some of marketers’ top challenges. [Read online]( Email sent to: {EMAIL} If you cannot view the HTML newsletter, [please read it in your browser here](. [Become a Premium Subscriber]( | [Advertise with us]( [Manage your email preferences]( | [Unsubscribe]( | [Terms of Use]( | [Privacy Policy]( ©2023 Insider Intelligence, One Liberty Plaza 9th Floor, New York, NY 10006 [LiveIntent Logo]( [AdChoices Logo](