By Lutz Hollmann-Raabe, COO & CSO, Bütema AG
Retail media is currently on everyone's lips. Many providers are enticing customers with the prospect of simple integration and rapid amortisation of investment costs. But what exactly is retail media and what is important?
Retail media encompasses all advertising and marketing activities at the point of sale. This refers to the advertising of brands and companies within retail structures. A classic example is sponsored products on online marketplaces such as Amazon, Otto, eBay or Zalando.
Recently, however, retail media has also been increasingly used in bricks-and-mortar retail. Digital signage displays offer an excellent opportunity for advertising here, and demand is constantly increasing.
A key advantage of this technology is that retailers can cover part of their investment costs by utilising retail media - especially in highly frequented locations. Brands and companies worldwide benefit from additional advertising space - a classic win-win situation.
Careful selection and customisation of retail media advertising is important for retailers. Depending on the provider, advertising can be segmented into different sectors and should always be tailored to the retailer's specific target group. For example, a baby and children's supplies shop could offer its displays for advertising tutoring agencies and home help agencies. Advertising for tour operators aimed exclusively at adults, on the other hand, would probably be less effective.
By precisely addressing the target group, the advertising fits in with the retailer's digital signage displays and strengthens its reputation as a connoisseur of its customers. And that is ultimately what matters. Understanding the customer's wishes, needs and problems better than they do themselves and offering solutions that they didn't even realise they needed.