To say 2022 is to be facing a watershed in terms of Retail Media : competition in this sector is growing like foam, since it is a space where brands can find a consumer with a purchasing mentality, becoming the ideal place to make branding and performance strategies. Hence, today it can be said that we are facing the unstoppable rise of Retail Media.
This is one of the core points derived from the analysis table “The rise of retail media”, made up of Xepus Ginebra, CEO of Omnicom Media Group Mexico; Gabriel Richaud, general director of IAB Mexico and Daniel Bonilla, commercial manager at Mercado Libre.
It is important to remember that retail media is the set of strategies, resources and communication actions available within the platforms and apps of retailers, to increase sales and optimize the positioning of a brand. Go over this basic concept in the first M Community panel.
And it is that this phenomenon within digital marketing grows, unstoppably, on a global scale. “ Retail media is a funnel in itself where you have to do awareness and performance”, says Xepus Ginebra.
“From 2020 to 2021, retail media in the United States grew 53%, this is 31,000 million dollars and represents 16% of the total investment in digital (in that country). It is estimated that, by 2023, the percentage of what retail media represents ( over the total investment) will be 20%”, points out, in turn, Gabriel Richaud.
We witness the growth of this phenomenon because it is exactly the place where people with purchase intention are, continues Daniel Bonilla. Hence, it is observed how it is growing above the market.
“ Retail media is always associated with performance because it is closer to people with purchase intent”, explains Bonilla. “In Mercado Libre, 8 out of 10 searches are generic, so the possibility of positioning (with the brands) is enormous. There is a sea of users, they are receptive and looking to transact. This is to position ourselves correctly, it can increase brand presence by up to 40%, according to studies we have done with Kantar, and it is 94% more efficient in increasing the purchase intention for our brand, compared to competitors”.
The mix of media is what will allow branding , awareness and performance to be built in retail media .
“In the United States, 17% (of the investment) is already made in retail media , while in China about 42%. In Mexico and Latin America we are close to 2%, barely. The opportunity is enormous and will continue to grow exponentially as part of the healthy mix,” adds Bonilla.
The impact on digital marketing strategies
However, retail media is far from being a fad in digital marketing. According to Xepus Geneva, it offers strategic opportunities to build on it in the long term: “It is a channel to incorporate it into your entire marketing strategy in which you can think about it in the medium term and see how you can combine it. You have to know how to find the balance and find this channel that has direct interaction with the user to carry out tests, packages, to complement the long-term strategy of the brand”.
To cement these strategies, the key is in the media mix, contributes, in turn, Gabriel Richaud.
“The important thing in this customer journey is to be prepared to interact and personalize the message that the brand can propose and retail media can do it from the first source data that the marketplaces have, beyond just showing them a message in a unidirectional way, to be relevant and not intrusive.”
It is in this space where brands find the unique opportunity to contact the user who is in a buying mindset, says Daniel Bonilla: “In Mercado Libre Meli we have the largest audience in Mexico and Latin America. With this vision, brands can convert at the moment and in the short term. We have some of the most powerful audiences in terms of insights . Particularly in Mercado Ads we increased awareness from 21 to 34%; when we achieve this guideline we are a channel where awareness and long-term brand recall can be generated”.
Find this analytics table. Familiarize yourself with a topic that is at the forefront of digital marketing and also represents a great opportunity to engage with your users when they are in a buying mindset.
