Retail media: the store as a communication platform

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WYgroup

It won’t be long before we see brands that a retailer doesn’t directly work with on various media platforms.

When we enter a supermarket and see a large yellow sign with red letters reading “promotion”, We enter a shopping mall, and a bright screen displays the latest product from the brand we like. We open our wallet and see the card from our favorite store.

What do they have in common? They are all part of a commercial communication ecosystem known as retail media.

Retail media has emerged as a powerful marketing tool, engaging directly with consumers at the point of sale.

If the point of sale is often seen as the “court of consumption”—where all decisions are made—then retail media acts as the advocate, persuading consumers to make the right choice.

While the concept of retail media is not new Since the time when the first merchant decided to write a message inside their store, retail media has existed.

The major difference today is that it is increasingly being handled in a more systematic and integrated manner, encompassing a range of techniques and tools, from in-store advertising to online promotions, samples, loyalty cards, and coupons.

Ultimately, everything that builds the relationship and knowledge between a retailer and their consumers falls within this universe.

The relevance and advantages of retail media in brands’ commercial strategies are undeniable. The ability to segment and personalize based on customer data provides a highly targeted and effective approach.

No one knows better than our favorite retailer what we buy and when we buy it. Visibility and reach are also key factors for brands.

By leveraging the online presence of major retailers, brands expand their exposure to potential buyers and spread their message to others who could also become their customers.

In addition, there is the significant advantage of conversion measurement. If my message is strong and my offer is compelling, consumers will make a purchase.

In online environments, we already have that metric well-structured. With retail media platforms, in the future, the in-store experience will head in the same direction.

Imagine the satisfaction of a marketing director who places their new campaign at a point of sale and immediately sees the impact on their brand’s sales. Is this futurology? No, it’s just a small glimpse of the future.

When discussing the future of retail media, we must include data integration, AI, and the new possibilities for interaction and business that they will enable.

The ability to offer even more personalized shopping experiences, based on the analysis of dynamic behaviors and individual consumer preferences, promises to revolutionize how brands connect with their target audience.

Nothing will be done based on opinions anymore; instead, everything will be done according to standards that ensure a seamless and stress-free experience for the consumer. We will enter the world of hyperpersonalization.

Virtual assistants and “chatbots” represent another area of potential growth. These tools will provide immediate support to customers, from product selection to problem resolution, enhancing satisfaction and loyalty.

Interactions, which will largely be conducted via voice systems, will be indistinguishable from a real voice. Factors such as vocal nuances and even irony will be recognized and addressed by the system, reducing the stress and anxiety that still accompany interactions with synthetic voices.

In the near horizon of retail media, numerous possibilities for integration with other media are emerging, further expanding the reach and effectiveness of brands’ marketing strategies, and establishing it as a new preferred platform for engaging with consumers.

It won’t be long before we see brands on various retail platforms that the retailer does not work with directly, but which have a heightened interest in their consumer group.

Imagine a brand launching a new van for large families: who better than a supermarket chain to identify them based on their shopping patterns?

Moreover, the ability of retail media to measure immediate conversion and correlate it with communication allows for accurate evaluation of return on investment, providing valuable insights for continuous adjustments and optimization of brands’ communication strategies.

We will know what works immediately, what aids conversion, and what maximizes it. This seamless integration between the medium of communication and real-time measurement promises to redefine the retail advertising landscape, providing brands with a more precise, data-driven approach to engage, convert, and retain consumers.

What’s most interesting about this new era of retail marketing is its evolution. We’ve moved stores to screens (on phones and computers); now we’re bringing screens into physical stores. The future will definitely be even more integrated.

Article written by João Santos, COO of WYgroup, and originally published in Meios Publicidade.