Rescuing Your Retail Media Network: 3 Key Strategies for Retailers to Improve Performance

In the fast-paced world of retail, maintaining a robust and high-performing retail media network can be a strong competitive advantage. If a retail media network is underperforming, there are strategic steps retailers can take to turn things around. Here are three key strategies to consider:

1. Embrace identity platforms.

The first strategy that can help revitalize retailers’ retail media networks is harnessing the power of identity platforms. Many retailers are using only first-party data, which can limit their understanding of customer behavior and preferences and lead to less effective marketing strategies. An identity platform can fill this gap, offering a more holistic view of their customers and the ability to connect with real people on off-site channels.

By integrating an identity platform into a retail media network, retailers can gain deeper insights into their customers' shopping habits, preferences and behaviors. This comprehensive perspective can help CPG brands tailor their marketing strategies more effectively and deliver one-to-one personalization, leading to improved customer engagement and, ultimately, increased sales.

Another major advantage of having capabilities to deliver one-to-one personalization is accessibility of such solutions to smaller and longtail CPG brands. This broadens the reach of the market and scales up revenues for retailers.

2. Broaden your channel views.

The second strategy involves adopting a broader view of all channels. This means not just focusing on the most popular or obvious channels but considering all potential digital touchpoints.

Are you maximizing the potential of each channel? Are you considering monetizing all digital touchpoints, including store channels, kiosks, connected television, etc.? Retailers must think about how they can make their channels more appealing and relevant to their customers. This involves considering the customer journey and how customers interact with their brand across different channels. The goal is to make their marketing less promotional and more customer centric.

Generative AI can be a valuable tool in this regard, helping to create content that's tailored to the preferences and behaviors of customers, enhancing their experience and boosting engagement. Additionally, retailers should develop a wide range of ad formats, such as sponsored product listings, on- and off-platform display ads (including mobile), connected television, video ads, and social advertising to attract a broad range of CPG brands and help them leverage the expanded channel mix effectively.

3. Equip consumer packaged goods companies (CPGs) with comprehensive tools.

The third strategy is to equip CPGs with comprehensive tools that provide a full view of their campaigns across all channels. This involves thinking about retail media networks as a platform that offers all the capabilities needed to make CPGs successful.

CPGs want to run their campaigns across all channels, not just piecemeal. They also want to see the efficacy of their campaigns across channels, which requires sophisticated measurement and transparency via closed-loop reporting and a way to bring in their own data as well.

The greatest value comes from triangulating the view between the data from retailers and CPGs. This is where data clean rooms and modern AI capabilities can come into play to help retailers and CPGs work together securely to develop first-party insights and then predict the next best action using AI based on these comprehensive data insights.

The key to success in the retail landscape lies not in avoiding challenges, but in facing them head-on with strategic, data-driven solutions. By implementing these strategies, retailers can not only enhance their retail media network's performance but also gain a competitive edge in the ever-evolving retail landscape.

Sudip Mazumder is senior vice president, retail industry lead, North America at Publicis Sapient, a digital business transformation and consulting firm.