Online retailers have a wealth of first-party consumer shopping and buying behavior. They know what shoppers search for, click on, add to their carts, and then remove only to add it back again a few more times. The amount of information Amazon knows about me is downright scary.
Here’s an example of Amazon’s awareness of my buying habits. Based on my search history and purchases, they know that I not only have at least one cat, but one with dietary issues. Amazon isn’t showing me ads for specialized Purina and other pet food products out of the goodness of their heart; someone is paying to put their products in front of people who are likely to purchase them.
The first-party knowledge that retailers have collected on their customers has now morphed into the newest media channel on the block called Retail Media Networks. Also known as RMNs, Retail Media Networks are basically online retailers that use the first-party data they’ve collected to sell advertising to brands. Brands like Purina, who want to get their cat food and other cat-related products in front of cat owners. With their first-party data, retailers say they can target with greater accuracy than other media.
RMNs are on BIA’s radar, and we plan to start issuing insights and analysis. Get a sneak peek into what we’re thinking in the story, Where CPG IT Teams Fit in the Retail Media Puzzle. BIA’s Managing Director Rick Ducey discusses cross-channel integration, ROI measurement, data sharing, and the need for clean data rooms for RMNs in this Consumer Goods Technology article.
Then, stay tuned for more analysis from BIA on what RMNs mean in the local advertising marketplace.
