Businesses are increasingly being pressured by retailers to use their Retail Media Networks (RMNs). A recent report from the Association of National Advertisers (ANA) found that 88% of companies surveyed said they are somewhat or heavily influenced by retailers to buy advertising on their RMNs. Respondents to the survey indicated that, for many brands, RMNs are seen as a ‘have to buy’ rather than a ‘want to buy’.
This could be due to the economic uncertainty and rising inflation, as consumers can switch to private label and the retailers own these. Therefore, brands are using RMNs to protect their brands as well as build them.
The survey also asked respondents how their organisation views their investment with RMNs, using a five-point scale ranging from “Valuable marketing tool” to “Cost of doing business”. 28% said it was the former, while only 31% said the latter, with 42% placing RMNs somewhere between the two. This indicates that many brands are active but reluctant buyers.
In order for RMNs to continue to grow, retailers must prove their value with useful and tangible data for metrics. They must demonstrate that these platforms can drive incrementality and positive ROAS for brands. There is evidence that RMNs are providing ROI, as from May 1, 2021 to the end of the following January, more than 23,500 companies bought RMN ads.
52% of companies surveyed expect RMNs to be viewed more positively as a “valuable marketing tool” in the near future. To make this happen, advertisers and retailers are taking steps to test and calibrate the activation and performance of RMNs against business objectives and KPIs. Measurement standardization and transparency from RMNs is also expected to help in this process.
Overall, RMNs can provide a number of benefits to brands, such as the ability to target specific audiences, track results in real-time, and measure ROI. Therefore, it is important for retailers to prove the value of these networks, in order to ensure they remain a valuable marketing tool for businesses.
Originally reported by Martech: https://martech.org/88-of-brands-say-theyre-pressured-to-use-retailers-media-networks/
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