First, brands must understand consumer behavior, price sensitivity and brand loyalty on Amazon. Amazon shoppers are very price-conscious and will often hunt for the best deals, unless they are specifically loyal to a brand. Shoppers looking for generic items, like paper towels, will likely choose the option that offers the most value for their money, making it essential to consider your pricing strategy compared to other paid results. Even if competitors don’t have the exact same product, shoppers often think in terms of value and quantity. Additionally, some brands overlook the fact that increased traffic during Prime Day comes from deal-seeking shoppers. They’re not visiting the site for full-priced products, so offering compelling deals is necessary to capitalize on the increased traffic. 

Avoid these mistakes for Prime Day success. 

Mistakes are inevitable when crafting a strategy, and there’s no perfect formula since you can’t predict what other brands will do. Here are some frequent mistakes and how to avoid them: 

Mistake #1: Starting aggressive bidding and budget increases at the last minute. Many brands ramp up their bids and budgets either the day of the event or just a few days before, which puts them behind.

Don’t wait until the last minute to ramp up. Discuss and decide on your Prime Day products, promotions, budgets and inventory months before Prime Day. Strategically plan your promotions, inventory and advertising efforts well in advance to build momentum and maximize visibility.

Mistake #2: Pushing new or less relevant products that don’t have a proven sales history. Amazon's algorithm-driven platform can make launching new products on Prime Day challenging.

Push proven products, not newbies. Focus on products with a strong sales history, good category rankings and sales velocity. Launch new products ahead of Prime Day to build momentum, gain reviews and start the flywheel effect. Use Prime Day as a catalyst to boost visibility and sales for these products. This helps you capitalize on the increased traffic while ensuring your products have the necessary reviews and traction.

Mistake #3: Indiscriminately throwing discounts at everything. Your promotions need to be compelling and competitively priced. If your discount is 10% off but your main competitor offers 30% off, you'll be at a disadvantage.

Make your discounts count. Focus on a select assortment of products and leverage seasonal trends. Promote summer-appropriate items (e.g., outdoor gear, camping equipment, kayaks) and back-to-school necessities (e.g., school supplies, college essentials, cold medicine).

Mistake #4: Setting budgets that are too conservative. Those willing to spend more often see the most substantial growth. While cost-per-clicks may increase, so do conversion rates. 

Don’t be afraid to invest heavily. The returns can justify the expenditure. Monitor performance throughout the day and be ready to reallocate budgets to top-performing ads. Start ramping up your bids and budgets three to four weeks before the event to build momentum and better position your products.

Mistake #5: Underutilizing Sponsored Brand Ads. Typically, brands spend around 20% of their budget on these ads throughout the year, but this ad type performs exceptionally well during Prime Day.

Leverage the power of Amazon’s sponsored campaigns. Allocate a substantial portion of your budget to Sponsored Brand Ads for increased visibility. Use Sponsored Display Ads to retarget potential shoppers who have shown interest in your products, while using video ads to capture attention and boost brand recall. 

Mistake #6: Raising bids and budgets too early. This can lead to exhausted budgets by early evening. Brands often decide on a fixed number of advertised ASINs and split their budget evenly among them. 

Be flexible enough to reallocate your budget accordingly. Many consumers shop and convert later in the evening, so ensure your ads show at peak times like 7, 8, or 9 PM. Monitor performance throughout the day, double down on top performers and adjust budgets dynamically. Know when to turn off your deals, and revert settings by late evening on the second day to avoid overspending.

Mistake #7: Forgetting about the Halo Effect after Prime Day. Two critical strategies are often overlooked: retargeting and cross-selling.

Don’t ignore post-Prime Day opportunities. Implement lead-out strategies like retargeting and cross-selling to maintain momentum. Set benchmarks before Prime Day and be ready to revert to your pre-Prime Day bids and budgets immediately after the event. Failing to do so can lead to wasted money, lower conversion rates, and decreased efficiency, negatively impacting your SERP relevancy and organic ranking. Have a bulk sheet prepared detailing your historical spending and bids that drove growth. 

For additional preparation tips and insights, check out our Prime Day guide and checklist.

Playing the long game for incremental growth on Amazon.

Prime Day should not be viewed in isolation. It’s an opportunity to highlight your brand, gain new-to-brand shoppers and liquidate older inventory. More importantly, it’s a chance to capture consumers who may not have planned to buy immediately but are enticed by the discounts. This can lead to continued engagement and sales weeks or even months down the line. Think of Prime Day as a way to set the stage for future interactions with your brand. 

By optimizing your product listings and advertising strategies, you can make the most of Prime Day and drive substantial sales. At the same time, avoiding common mistakes and starting your preparations early can lead you to success. Focus on strategic planning, monitor your campaigns closely, and be ready to adapt to changing conditions. With these strategies in place, you’re well-equipped to achieve your Prime Day goals.

Ready to craft a winning Prime Day strategy? 

Our expertise lies in creating tailored strategies for incremental growth on Amazon. Contact us for expert advice and detailed plans to amplify your Prime Day results. 

Plan your Prime Day deals to attract early shoppers and maintain momentum. 

Lead-in and lead-out strategies are essential for Prime Day success. Start your deals in the weeks leading up to Prime Day to attract early shoppers and extend promotions in the days following to catch those who missed the event. Offering slightly lower discounts during these periods can maintain momentum and boost overall sales, engaging window shoppers and latecomers. 

Understanding consumer psychology is key. Put yourself in the shopper’s shoes: a 20% off limited-time deal with a big red badge on the search results page is more impactful than a simple 10% or 20% off coupon. Shoppers are drawn to the thrill of limited-time and Lightning Deals. 

Implement these tactics to maximize Prime Day sales if you missed the deadline for Lightning Deals. 

When Lightning Deals are no longer an option, don’t panic; there are other ways to attract early shoppers, maintain momentum and drive conversions. For example:

• Run traditional promotions. To attract attention, use Best Deals or coupons with significant discounts. Best Deals provide red badging and placement on Amazon’s Deals page.

• Offer Subscribe & Save coupons. Convert one-time shoppers into repeat customers with a 15% discount on the first subscription, particularly effective for frequently purchased items.

• Bundle products for added value. Create product bundles to increase the average order value and provide better deals to shoppers.

• Invest in sponsored campaigns. Boost your Sponsored Product Ads, Sponsored Brand Ads and Sponsored Brand Video Ads. These ads appear at the top of search results, featuring multiple products and directing shoppers to a specific deals page within your Brand Store. Video ads are a cost-effective way to increase brand recall and engagement. 

• Retarget with Amazon’s Demand-Side Platform (DSP). Use DSP to retarget shoppers who have interacted with your brand to boost loyalty and drive repeat purchases. Sponsored Display Retargeting is a viable alternative for smaller brands without a DSP budget.

• Leverage Amazon Marketing Cloud (AMC). Use AMC to target shoppers who added products to their cart but didn’t complete the purchase. This is effective in the lead-out phase to convert undecided shoppers. This capability is not available in the DSP portal and requires an advertising partner with AMC access. 

• Keep the momentum going after Prime Day. Continue retargeting and cross-selling for about six weeks after Prime Day. Adjust your bids to match post-event conversion rates, but maintain your budget to stay visible. Use DSP to retarget non-converters and cross-sell to those who purchased during Prime Day. 

Learn how to optimize ad placements and bids for increased Prime Day sales. 

Another important factor that will determine your success on Prime Day is visibility. There are certain strategies brands can use to maximize impact:

• Increase top-of-search visibility. Consider strategies to ensure your ads appear at the top of search results, where shoppers are more likely to notice them. This can significantly impact your ad’s visibility and click-through rate. 

• Plan your budget strategically. Break it down daily for the weeks leading up to, during, and after Prime Day. Focus on upper-funnel activities like DSP and audience targeting to build brand awareness. During Prime Day, shift to mid and lower-funnel tactics to capture the increased demand. After Prime Day, revert to normal bids and budgets to avoid off-peak overspending.

• Utilize data from past events. Analyze historical data to understand which products and ad types performed best. This will help you focus your efforts on the most effective strategies and ensure you’re investing in the areas that will yield the highest returns. 

• Ensure 24/7 ad activity. Prime Day traffic and conversions happen around the clock, so make sure your campaigns are active and visible for the entire 48-hour event to avoid missing out on potential sales during off-peak hours.

• Make real-time adjustments. Keep a close eye on your campaigns and be prepared to make real-time adjustments. Adjust allocations to maintain visibility if you notice campaigns running out of budget. Remember, the 14-day attribution window can improve ROAS by 10-20%.

Evaluate your Prime Day success with these key performance indicators. 

Understanding your Prime Day performance is essential to gauge the impact of your promotional efforts and investments. By carefully considering the following metrics, you can evaluate the effectiveness of your strategies and make informed decisions to maximize future performance:

• Top-Line Sales: Review your overall sales growth year over year to gauge the success of your Prime Day efforts. Once Vendor Central metrics are available, this should be your first metric to check. 

• Total Advertising Cost of Sale (TACoS): TACoS offers a holistic view of your advertising efficiency by measuring total ad spend relative to overall sales. It helps you understand the impact of your ad investments. 

• Conversion Rate: Compare your Prime Day conversion rate to the rolling four-week period leading up to the event. This will help you evaluate the effectiveness of your sales and promotional strategies. 

• New-to-Brand Percentage: Track the percentage of new shoppers acquired during Prime Day. A high number of new customers can indicate future growth potential and brand expansion. 

• Share of Voice (SOV): Measure your brand’s visibility compared to competitors. A higher SOV suggests greater brand awareness and market presence during Prime Day. 

• Return on Advertising Spend (ROAS) and Advertising Cost of Sales (ACoS): Analyze ROAS to see the revenue generated per dollar spent on advertising and ACoS to understand the percentage of sales spent on advertising. Comparing these metrics year over year helps assess ad spend efficiency. 

Wrapping up your Prime Day strategy for maximum impact.

To make the most of Prime Day, understand consumer psychology, plan strategically, and tailor your approach based on your brand’s category. Success involves a mix of stacked promotions, mid-funnel advertising, strategic budget pacing, and dynamic adjustments based on real-time performance. Start your preparations now, as CPCs are expected to rise by 50% on Prime Day. Mid-event adjustments will be more expensive and challenging, especially for non-branded keywords. A well-crafted strategy will help you capture shopper attention and maximize returns. 

In a nutshell, Prime Day shoppers are hunting for the best deals. Decide your strategy ahead of time: if profitability is your goal, be more controlled with your deals; if growth is your goal, be more aggressive with promotions. 

Finally, remember that a solid Prime Day strategy is only as good as the results it delivers. Analyze your outcomes to refine your approach for future events. 

Ready to optimize your Prime Day strategy? 

We specialize in enhancing Amazon product listings and understanding shopper behavior to ensure your brand stands out and achieves maximum returns. Contact us for more strategic insights and techniques to maximize Prime Day results. 

Get ready for Prime Day by upgrading your Amazon Brand Store and listings.

Optimize every detail for Prime Day. Even if you think your listings are already optimized, take a moment to ensure every detail is dialed in. Check that all of your content is up-to-date, especially if you've made recent product changes. Beyond individual listings, ensure your entire brand presence on Amazon is polished and consistent across your Brand Store, posts, and logos.

Boost your organic visibility on Amazon. Evaluate your organic performance in Amazon search results. Fine-tune your titles, bullet points, product descriptions, and backend keywords to boost your organic rankings. Organic sales are generally more profitable than advertising sales, so tracking and improving your organic performance should be a priority. Make incremental adjustments to potentially move from a lower search result slot to a higher one, enhancing visibility during Prime Day.

Give your Amazon Brand Store a Prime makeover. Your Brand Store plays a significant role in your overall strategy. Ensure it offers a seamless user experience, especially on high-traffic days like Prime Day. Focus on metrics like consumer interaction, add-to-cart rates, and click-through percentages. These insights will help you understand how shoppers engage with your store and identify which products drive the most interaction. 

To keep the shopping experience engaging, consider refreshing your Brand Store’s visuals, such as updating the header or images. While you can't make exaggerated claims like "50% off all products" due to Amazon's policies, you can still create a visually appealing and timely presentation. Some brands even update their Brand Store headers for specific holidays or internal promotions to maintain a fresh look.

Prime your listings for shopper confidence. In addition to the basics, consider these advanced tips to enhance your listings further and drive better performance on Prime Day: 

• Leverage A+ Content and Enhanced Brand Content features to provide detailed, visually rich information about your products. This can improve conversion rates and help your listings stand out.
• Incorporate high-quality product videos that demonstrate your product’s features and benefits. Videos can increase engagement and give potential shoppers a better understanding of your product. 
• Actively manage your customer reviews and Q&A sections. Address negative reviews promptly and provide thorough answers to customer questions. Positive reviews and active engagement can significantly impact purchase decisions.

Prepare for Prime Day basket building by anticipating shopper behavior and adjusting ad budgets. 

In the two weeks leading up to Prime Day, shoppers tend to build their baskets in anticipation of deals. This behavior can result in lower conversion rates and reduced advertising ROI. To effectively navigate this period, follow these steps: 

Anticipate delayed purchases. Shoppers often add products to their cart but wait to purchase until Prime Day. Recognizing this pattern helps you better interpret performance metrics during this period. 

Set the right expectations for Prime Day. A temporary dip now means a big sales payoff later. Brands participating in Prime Day should start by pacing their budget day-by-day for the weeks leading up to, during, and after Prime Day. A detailed budget plan avoids overspending early and ensures there are enough resources to maintain visibility throughout the event.

Adjust Prime Day ad budgets. Consider reducing your ad budgets to avoid overspending. However, rather than drastically changing the advertising budget, just dial it back a bit. Stay visible and keep engaging with potential shoppers so you’ll be ready to retarget those who interacted with your ads when Prime Day hits. For instance, focusing on mid-funnel ads such as Sponsored Brand ads and Sponsored Brand Video ads can help maintain visibility and engagement during this period.

Maximize visibility during Prime Day. Standing out during this high-traffic event requires a strategic approach to ensure your product remains top-of-mind for shoppers. Here are some effective strategies to boost your presence and drive sales:

• Increase your budget for Sponsored Product ads to maintain a strong presence throughout Prime Day. These ads help drive traffic directly to your product listings and keep your brand visible amid the competition.
• Participate in Lightning Deals and offer enticing coupons to attract bargain hunters. These limited-time offers can significantly increase your product’s visibility and drive higher sales volumes by creating a sense of urgency and value. 
• Leverage social media and influencer partnerships to create buzz around your Prime Day deals. Influencers can help expand your reach and build anticipation, making your products more appealing to a broader audience.

Ensure Prime Day success with enhanced listings and strategies.

Optimizing your listings and preparing for basket building are crucial steps for Prime Day success. By polishing your listings, boosting organic visibility, and enhancing your Brand Store, you create a seamless and engaging shopping experience. Anticipating shopper behavior, setting realistic expectations, and adjusting your ad budgets strategically will help you navigate the high-traffic period effectively. Finally, leveraging advanced advertising tactics and engaging with influencers can amplify your reach and drive higher sales. With these strategies in place, you'll be well-prepared to capture the increased traffic and capitalize on Prime Day's opportunities.

Ready to optimize your Prime Day strategy? 

We excel in optimizing Amazon product listings and analyzing shopper behavior to help your brand achieve exceptional results. Our strategic insights and proven techniques can set you up for Prime Day success. For expert guidance and support, connect with us here. 

Here’s how to tailor your Prime Day strategy to meet your objectives.

If your Prime Day goal is profitability, the key is to be strategic with your spending and focus on products with healthy margins. Here are some steps to consider:

• Allocate your budget to a few key ASINs to minimize wasted spend and maximize ad efficiency. This focused approach helps you manage your resources effectively.
• Use historical data and competitive analysis to understand the market landscape. Look at what your competitors are doing. How much are they spending? Are they running limited-time Lightning Deals or Prime-exclusive discounts? This information helps you decide where to allocate your budget effectively without overspending on inflated CPCs, which can rise by 30-40% during Prime Day.
• Understand that consumer buying behavior has shifted to shoppers spending less on ecommerce. This makes it even more important to be even more strategic. If you can't compete with the big spenders, lowering your bids and maintaining efficiency might be smarter rather than chasing inflated cost-per-clicks.

If your Prime Day goal is growth, you might need to be more aggressive with your advertising and promotions. Here's how to approach it:

• Increase your ad spend and run more extensive deals to capture a larger market share. To ensure your efforts are effective, you need a thorough understanding of your competitors’ actions and current consumer trends.
• Understand that consumers want deals with big red badges, not regular-priced items. Think like a shopper: If your item is priced the same as it was yesterday, they'll likely wait or go elsewhere.
• Use all available data to make informed decisions. Failing to do so will make your efforts more expensive and less effective. In some cases, if you can't afford to run deals or compete with high ad spending, saving your budget for after Prime Day when competition normalizes might be wiser.

Learn the importance of lead-in and lead-out strategies for Prime Day.

Whether your goal is profitability or growth, a comprehensive lead-in and lead-out strategy is what will drive and maximize your Prime Day success. The lead-in phase is about building awareness and interest and familiarizing Amazon shoppers with your brand, while the lead-out phase is about capturing residual demand and maintaining momentum to drive additional sales even after Prime Day ends. Here’s how to build awareness before the event and maintain momentum afterward. 

Lead-In Strategy: Starting Strong. The lead-in phase is about building awareness and familiarizing shoppers with your brand. This is not the time to focus on high ROAS; instead, run video placements, streaming TV ads, and Sponsored Brand Ads to move consumers down the funnel. 

Budget Pacing: Timing Your Treasure. When preparing for Prime Day, aligning on which products to push is important. These discussions should start early, ideally in February or March, to determine which products will be promoted and how the budget will be allocated. Planning your budget structure—whether to pull spending from August into July or otherwise—is key. Strategically plan your budget down to the day, considering how much to spend in the weeks leading up to Prime Day. This early alignment ensures that you are well-prepared and not scrambling at the last minute. During Prime Day, shift to lower-funnel tactics to capture demand, using Sponsored Product Ads and Sponsored Display retargeting to drive high returns.

Lead-Out Strategy: Finishing with Flair. Don’t let your efforts end when Prime Day ends. Many shoppers continue to shop in the days following the event. Extend your deals slightly and continue advertising to capture these late buyers. This approach can help you maintain momentum and capture additional sales. Focus on bottom-funnel ads like Sponsored Product Ads and Sponsored Display Retargeting to capture residual demand. This can help you ride the wave off of your competitors coming out of Prime Day.

Pave the way to Prime Day success.

Identifying your goals for Prime Day will set you on the path to incremental success on Amazon. By focusing on strategic spending, analyzing historical data, and understanding consumer behavior, you can develop a tailored approach that aligns with your specific objectives. Whether your aim is profitability or growth, early alignment on product promotion, a well-planned advertising strategy, and a comprehensive lead-in and lead-out approach are key to success. Additionally, creativity in ad placements and leveraging advanced targeting options like Sponsored Display Retargeting can further enhance your campaign's effectiveness.

By starting preparations early and thinking strategically, you can maximize your returns on Prime Day.

Looking to make the most out of Prime Day? 

Media.Monks specializes in crafting tailored strategies that help brands achieve their goals, whether profitability or growth. Let us guide you through the process with expert insights and proven techniques. Reach out to us here. 

I always look forward to Advertising Week LATAM as it’s a rare opportunity to catch up with old friends and colleagues face-to-face—and in the city I call home, no less. Despite partially coinciding with the Day of the Dead, I have to say the event was more alive than ever, as I bumped into every imaginable brand manager, marketing director, client and podcaster. Representatives from world-class brands like Netflix, Spotify, Toyota were in attendance, and not a single seat was empty by the time Sir Martin Sorrell stepped onto the stage. Needless to say, our time spent in meetings and attending (and hosting) a diverse range of sessions has left us with some valuable insights. Here are some of those takeaways. 

As digital environments expand, AI is the key to maintaining brand relevance.

In today’s changing landscape, CMOs need to align strategies with transformative technology to optimize operations, improve customer engagement and drive conversion. That was the theme explored by our Co-CEO, Content Bruno Lambertini and Associate Vice President, Innovation Technology Carlos Tejeda as they took the stage on October 31. Rather than a conventional session, their discussion served as an exploration, beginning with an overview of the challenges that businesses encounter in the present day. 

"We surveyed top CMOs from major global brands, and they all agreed on four key points,” Lambertini explained to introduce the topic. “Firstly, the complexity of making decisions and seeing short-term results. Secondly, the fragmented media landscape makes it difficult to determine which channels truly yield outcomes. Thirdly, the delicate nature of brand reputation. And last but not least, how do we take advantage of AI?”

The truth is that as digital environments expand, driving conversions can feel like finding a needle in a haystack. For Lambertini, social media is the key (and I wholeheartedly agree).  As marketers, we constantly ponder how brands can secure or expand their market position, enhance brand equity and drive business performance in today’s technological context. The answer lies in two key aspects, the first of which can be summed up in one word: intimacy. No, not the romantic kind, but the kind that harnesses the power of genuine human connections and community. Audiences crave a sense of belonging, and by establishing a brand that fosters this feeling, we lay the foundation for success. An important consideration: social media is the only space where this can happen on a large scale. The second aspect involves how we achieve this.

AI helps us understand what is organically happening online, what people care about and the spaces where they connect with each other, both within and outside the brand context. We can then use these insights to inform the creation of assets. “Working with Meta, we analyzed input drivers for our AI algorithm to generate the best result. This allowed us to produce 500 assets, so when the brand noticed creative fatigue in the campaign, we already had these new assets prepared and sorted by their probability of success,” Tejeda exemplified.

Furthermore, AI assists community managers by handling repetitive queries at scale, in real-time, and in a personalized manner. The cherry on top? AI enhances measurement by enabling us to extract learnings from a centralized source that connects platforms and contains information from all our marketing efforts.

In times of global uncertainty, activation and performance take center stage.

Speaking of the nature of AI, S4 Capital Executive Chairman Sir Martin Sorrell sat down with Insider’s Director, Matías Stetson, to chat about this particular topic as it relates to the prevailing macroeconomic and political conditions in the region. Amid global uncertainties and geographical fragmentation, Sorrell explained, businesses need to carefully pick their territories. He went on to say: “If I look at the world now, I’m very bullish on North and South America.”

The second consideration is digital transformation. With businesses becoming more cautious not only in choosing their markets but in their general spending, we need to look at digital platforms. “Clients are becoming much more short-term in their thinking, so activation and performance are important,” said Sorrell. “It is quite extraordinary that platforms are growing by 6-11% this year. The money from package goods companies has gone into the platforms, and the reason is that they see better performance, better activation, better measurements and better results from those platforms. AI is going to make them even more important than they are today.”

In summary, technological advancements and the current political and economic uncertainties have led brands to focus more on their short-term return on investment. Now, the competition revolves around acquiring and leveraging first-party data, which plays a crucial role in understanding consumer behavior and making informed business decisions. “To my mind, the best model is the Netflix model. They are the greatest proponents of hyper-personalization at scale,” said Sorrell.

That’s one of the areas where AI will have the most impact, as it transforms the way first-party data and platform signals are harnessed, decoded and utilized. When it comes to the realm of personalization and data-driven decision-making for brands, AI enhances brands’ ability to tailor their strategies to individual customers with precision and effectiveness. “We thought the web would drive personalization, but AI will take it to a totally different level. We may produce one and a half million creative assets. What took us three weeks, takes us three hours,” said Sorrell. This, coupled with the overall efficiency in areas like media buying, broadcasting and knowledge sharing, will shape the business models of brands and agencies in the years to come. 

Across industries and platforms, creative effectiveness reigns supreme.

During the two-day event, Advertising Week emphasized the importance of creativity in exploring fresh opportunities for growth across various industries and sectors. An illustrative panel by Eucerin, featuring our very own VP Creative Pablo Tajer, showcased how creativity in retail media can yield impressive returns, even when collaborating with third-party ecommerce platforms.

To distill the role of branding in retail, the speakers used a recent example of our work with the brand on the Mercado Ads platform. “We used storytelling to demystify the abundance of information we see on social media and provided consumers with accurate recommendations based on their skin type,” said Tajer. “This sector thrives on ideas and creativity. That’s why we partner with Mercado Ads and constantly push the boundaries of creativity, working on different proposals for major advertisers in the region.”

To emphasize a similar point, our VP Creative Francesco Vicenzi joined our partners at KFC Mexico and representatives from IAB to spill their secrets on creating award-winning campaigns that gain international acclaim. The key ingredients? Data, which uncovers valuable insights; creativity, which generates captivating concepts; and a comprehensive vision that brings everything together. Vicenzi exemplified this through our work on KFC’s The Battle of the Chickens: “We began by noting two important observations. Firstly, rap and freestyle ranked among the top three genres for Gen Z. Secondly, Gen Z has a fondness for promotions and discounts. These served as our starting points, and we recognized that to effectively engage with Gen Z, we needed to empower them. Thus, we provided them with a platform and space to express themselves.”

Striking a balance between short-term results and long-term brand growth.

If there’s one thing I learned from this massive event, it’s that CMOs face numerous challenges that demand immediate results without sacrificing long-term brand development. They must find a way to achieve short-term goals while also making significant contributions towards a larger impact. Those who establish robust data pipelines and effectively leverage new technologies are gaining a competitive edge, propelling their brands far ahead of the competition. It’s time to seize every opportunity within the social and digital landscape in order to become more agile, perceptive and responsive.

In case you need a little refresher, retail media networks are advertising platforms established by retailers on their own digital platforms—it’s sort of like in-store advertising, but in digital format. This creates a new revenue stream for retailers, as RMNs enable them to monetize their first-party data through the launch of ad products. Essentially, it’s all about the data, as ad monetization with RMN allows retailers to gather new information on the behavior and interests of their customers, enhance their first-party data strategy, and engage with new audiences by meeting their specific needs. Ever since third-party cookies have started crumbling, RMNs have emerged as the sweet treat that both retailers and advertisers need—and the demand for this solution is rising at an incredibly fast pace. 

The tried and tested RMN trend will continue to accelerate in the new year. Here are four developments that retailers, advertisers and digital marketing services partners alike need to prepare for.

RMNs go global. In short, every retailer around the globe is going to have a retail media network, if they don’t already—it’s simply becoming pure table stakes. What started in North America, with Amazon leading the charge, has been rubbing off on businesses in every other part of the world. I can guarantee that only a year or two from now, even small-scale regional retailers will have an RMN, whether that’s in Italy, Thailand or Argentina. Why? Because once the flame of a business trend has been ignited and fueled by a new, but proven economic paradigm, the fire simply has to spread. That said, it is important to note that all of this may seem like a scenario with no downsides, but there is a potential one: if RMNs are not executed well, retailers and advertisers run the risk of diminished customer experience. For this reason, many brands choose to team up with a partner that’s specialized in this technology. 

Put creative differentiation at the core. Up until very recently, the game of retail media completely revolved around data and mathematics, with people and technology coming in to better execute what is essentially a quantitative effort. As such, RMNs allowed very little space for creativity. Now, however, we are seeing retailers such as Amazon move up the funnel and into the world where creativity truly matters: branding. When it comes to building brand awareness and bringing in new customers, data definitely counts—but it’s the creative that can make a real difference. So, while you still need the smartest people and the savviest technology to handle quantitative details, retail media is more and more a game of bringing in the right creative. Considering there’s so much more opportunity for creative differentiation, the brands that are best able to bridge data with creativity are the ones that will succeed. 

Tailor unified real-time strategies. So far, most brands (and even some of their partners) have been deploying retail media networks per channel, which means that an advertiser’s budget and approach for Amazon may differ from its budget and approach for Walmart. In other words, they have been working in silos and optimizing within the lengths of each different platform. However, this is all about to change. In the near future, I believe brands will view retail media networks as interconnected advertising channels instead of a handful of unrelated platforms. With that, it will become more and more feasible for brands to build a single retail media strategy, which allows them to be more flexible and seamlessly move between different channels. In the same vein, they will start to use unified real-time optimization tactics to capitalize on arbitrage opportunities between various retail media networks. This essentially means that brands will take more of an active daytrading type of approach. While some parts of this process can be automated, many others will still require manual efforts and human intervention in the form of more centralized retail media teams—both at the side of advertisers and their partners. 

Deliver dynamic in-real-life placements. As retail media networks—which are currently completely digital—expand, retailers will start to move ads from their online platforms to their offline spaces. For example, Amazon has announced that it will install more digital signage in its Whole Foods stores across the US and connect their DSP to their in-store screens. This will enable the retailer to use first-party data to dynamically serve ads in a previously analog framework and programmatically target consumers, thereby transforming the century-old concept of paid POS into an extension of digital advertising. 

In short, dynamic IRL placements can help retailers and advertisers enhance their targeting. However, one issue with this approach is that it’s still based on backward-looking data. Simply put, ad placements are currently based on average demographic numbers. This means that a retailer doesn’t actually know who is in its store in real time. However, with Amazon’s Just Walk Out technology, where cameras and sensors follow customers throughout their entire in-store journey, retailers and advertisers will be able to gather aggregated data of everyone who’s in a particular store in real time. This technology may already be in use in Amazon Go stores, but I believe it will take a few more years before it can scale, especially considering its significant privacy concerns—so I’ll save this prediction for another time.

Teamwork to make the RMN dream work. 

Over the last year, retail media networks have blown up and blown our minds. The impact of this technology is far-reaching and will only continue to expand in the coming years. Now, it’s up to retailers and advertisers to dive in and start monetizing their first-party data. As for my final piece of advice, make sure to team up with an experienced partner that can help you along the way—this will benefit every party involved. 

Curious to learn more about retail media networks? Get in touch with our team via sales-ecommerce@mediamonks.com.