The holiday season is undoubtedly one of the most competitive times for retailers and brands vying for shoppers’ attention and share of wallet. This year promises to be no exception, with the average American shopper projected to spend $902 USD on gifts, food, and other seasonal items, making it potentially one of the busiest and most profitable holiday shopping seasons on record.
To capitalize on the nearly $1 billion USD spend predicted by the National Retail Federation, with nearly one-fifth of annual retail sales occurring between November and December, brands need to break through the clutter with the right message, for the right customer, at the right time. For mid-market companies that may not have the budgets and resources to compete with larger, multinational brands, data is the key to success.
Thankfully, retail media networks (RMNs) are the gift that keeps on giving this holiday season, providing mid-market brands with access to rich first-party data and precise targeting options to reach high-value shoppers directly at the point of purchase or wherever they may be.
Here’s how RMNs are helping mid-market brands stand out, inspire shoppers and, ultimately, get in the basket during the busy holiday shopping season and beyond.
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Providing Access to First-Party Data
With so much competition over the holidays, it’s essential for mid-market brands to reduce wasted ad spend by targeting consumers who are most likely to convert. However, placing ads effectively and efficiently can be a major challenge if you don’t have the right data.
RMNs provide access to high-converting audience segments through first-party data.
Unlike third-party data, which is often aggregated from external sources and may not be as precise, first-party data comes directly from the retailer, which knows their shopper best. RMNs are best positioned to unlock key insights based on their customers’ past purchases, website visits and loyalty programs in a privacy-safe manner that allows mid-market brands to deliver more personalized, relevant ads to customers at or near the point of purchase, without having to spend years developing their own data infrastructure and technology.
Closing the Loop on Measurement
But targeting the right customers is only one piece of the puzzle. To fully optimize campaigns and prove out ROI, you also need to know how your campaigns are performing.
Due to their proximity to the point of sale and access to reliable first-party data, RMNs can link ad impressions to purchases with a higher level of accuracy than traditional advertising channels. This allows mid-market brands to gain a more complete view of the consumer journey from initial engagement to purchase, which can be used to refine targeting further and improve performance.
Targeting Customers Online, Off-Site, In-Store, and Throughout the Funnel
In the past, RMNs were primarily used as a tool for bottom-funnel on-site advertising, providing brands with the unique opportunity to target customers when they’re already in a shopping mindset through sponsored product listings and display ads.
However, RMNs are increasingly allowing brands to leverage their data to reach customers online, off-site and in-store through various channels, partnerships and stages of the funnel, thereby creating new opportunities for brands to connect with shoppers, create more personalized experiences for customers and increase traffic and sales for retailers.
For example, RMNs are partnering with programmatic advertising companies to extend their reach and provide mid-market brands with access to additional media tactics like digital out-of-home (DOOH), display and connected TV (CTV). This allows mid-market and non-endemic brands — like sports, travel and live entertainment companies — to generate awareness and consideration throughout the holiday season. By extending campaigns beyond the retailer’s website, brands can connect with customers, even when they’re at home streaming their favorite TV shows and movies.
As a result, off-site retail media is expected to account for 18.5% of all U.S. retail media ad spend in 2024, with U.S. retail media CTV ad spending increasing by 335.5%. Meanwhile, DOOH is expected to comprise nearly a quarter of all U.S. in-store retail media ad spending by 2028.
By expanding RMNs beyond the physical and digital aisle, brands can now engage customers at every stage of their shopping journey.
Reaching Niche Audiences
When someone thinks of an RMN, the first company that probably pops to mind is Amazon, which accounted for over 75% of U.S. digital retail media ad spending in 2023. But there are over 200 retail media networks operating globally, from large-scale retailers like Target and Dollar General to category specialists like The Home Depot and Dick’s Sporting Goods (not to mention commerce networks like Marriott and Klarna).
With so much competition over the holidays, these RMNs provide brands of all sizes the chance to break through the clutter and drive sales through data-driven access to even more specialized audiences for targeting, allowing mid-market businesses new opportunities to connect with customers.
Connecting With Customers Before, During, and After the Holidays
According to Gartner, 32% of consumers planned to begin their holiday shopping between July and October this year, with 16% of U.S. consumers starting as early as June.
For many others, their holiday shopping season starts on Black Friday, which is often considered the official start of the holiday shopping season.
And don’t forget, when all the gifting is done, shoppers are still shopping. The majority of returns happen after the holidays in early January, providing customers with opportunities to purchase additional items or use up all those gift cards they accumulated over the holidays.
If you missed this holiday window, it’s never too soon to start planning for next year! With holiday shopping often stretching into the summer months and continuing on after December, RMNs are the gift that keeps on giving to mid-market brands, creating connections all year long.
Renee Caceres is the Head of Retail Media at StackAdapt, the programmatic advertising platform trusted by 20,000+ of the world’s biggest brands and agencies. As a strategic leader with 15-plus years of experience, Caceres played a pivotal role in operationalizing Walmart’s retail media business and developing Firework’s inaugural retail media network sales strategy. Recognized with the Retail Media Award in 2023, her customer-centric approach and innovative mindset have made her a standout in agencies, retail media and startups.
