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5 Reasons to Launch a Retail Media Network Now

5 Reasons to Launch a Retail Media Network Now

Commerce Commerce, Media, Retail media 3 min read
Profile picture for user mediamonks

Written by
Monks

Yellow data points connecting on a black background

Retailers have the data to know what sells, and advertisers need this data to refine their brand strategy. A win-win comes from collaboration between the two: retail media networks (RMN). Retailers have the opportunity to turn their first-party data and ad spaces into new revenue streams. However, many aren’t taking their chances and, as a result, miss out on a massive new source of revenue.

Retail media networks are when retailers establish an advertising platform on their own digital platforms—kind of like in-store advertising, but in digital format. This creates a new revenue stream for retailers by monetizing their first-party data through the launch of ad products. Though all of this is conceptually clear—every retailer wants to increase its revenues—the market is still reluctant to implement this solution. Retail companies either rely on selling their products and services rather than tapping into ad monetization, or they lack the right infrastructure and skills to build and run retail media networks. For most retailers, the latter is the issue. Some stick to what they know, whereas others outsource the work.

Monk Thoughts Only a few players have a clear focus on creating their RMN units, even though there’s so much potential. That’s why we have developed this solution within Media.Monks and implemented it for clients in the retail space.
Vinicius Galera headshot

The Business.Monks—Media.Monks’ business consulting category—focus on uniting strategy with experimentation, value creation with performance, and consulting methodologies with agency crafting. Given the high potential, it’s time to start building your retail media network, here’s why.

5 reasons why retailers should set up their retail media network.

RMN provides a new and very profitable revenue stream. “We’re talking about a new revenue stream with a margin between 60-90%, so it’s huge,” says Cacau Lima, Business Consulting Manager for the Business.Monks in São Paulo. Just look at Amazon Ads—in 2021, it reached over $31b in revenue, which is nearly 5% of Amazon’s total revenue. Additionally, RMN has a huge impact on the bottom line, with Onsite Campaigns yielding up to 90% of EBITDA.  

Advertisers want clear-cut solutions. Digital marketing is all about measuring the impact in sales. Though brands can measure clicks and impressions, the bottom line impact has always been estimated. With RMN, however, advertisers have the ability to measure bottom line conversion and optimize their media spend based on the increase in sales.

This solution is growing really fast. Today, $1 in every $6 is spent on media networks, and in about two years, it is projected to represent 20% of all digital media spend, according to Insider Intelligence. Currently, 82% of CPGs have already invested in Amazon Ads, while only 39% has invested in the second biggest retailer. This shows us that there are huge opportunities to increase investments in RMN. 

It’s all about the data. Since third-party cookies have crumbled, RMN is the sweet treat that both retailers and advertisers need. Through ad monetization with RMN, retailers can gain new insights into their customers’ behavior and interests, elevate their first-party data strategy, and engage audiences by giving relevant recommendations that suit their needs. As for advertisers, they can access the retailer’s precious first-party data and gather important information. 

We’re in the era of Everywhere Commerce. As CX and brand experiences become ever bigger and better, it’s crucial for advertisers to have control over how to engage with their consumers in every digital touchpoint. RMN ultimately creates the space and opportunities for advertisers to do so. On top of that, this business solution is beneficial to retailers, advertisers and consumers alike. “Between brand awareness and conversion, there’s typically a messy middle. RMN creates a one-stop shop, allowing customers to find a brand, get to know its history, and then convert in one go,” says Galera. 

Translating skills into solutions.

“In order to solve complex problems, we need to be able to speak different languages—that of media, social, data, and so on. So, we’ve built a team that can speak all these languages by mixing experts from different professional fields, who together give shape to an unbelievable diversity of mindset and innovative thinking,” says Helena Curado, VP Business Consulting LATAM, Media.Monks. 

To secure future success in this space, businesses—both retailers and brands—need to adapt to the ever-changing landscapes of commerce and consumer behavior, and it’s best to do it sooner than later. Taking the leap can be scary, but just take a look at the numbers—they show it will be worth it.

Retailers have the opportunity to turn their first-party data and ad spaces into new revenue streams. Find out how. Retail future of retail consumer data first-party data data-driven marketing Media Commerce Retail media

How F1 is Racing Puma into the Future of Retail

How F1 is Racing Puma into the Future of Retail

5 min read
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Written by
Monks

How F1 is Racing Puma into the Future of Retail

With the emergence of e-commerce giants and online competition, a new breed of future-thinking retailers has emerged. ANA’s 2019 Future of Retail Report notes that “The future involves having the right culture, using innovative approaches and technologies and a having a willingness and the skills to use data to learn from customers.” Future-thinking retailers, who can no longer rely on old strategies built on convenience and variety of product, are seeking to immerse their customers within tech-infused and value-added experiences.

These brands strive to attract and inspire consumers through in-store experiences, and must carefully consider how to bridge together offline and online, digital and physical—a delicate balance through which forward-thinking retailers stand to build equity through innovation and differentiation.

kiosk

The registration kiosks offers several points of personalization, like outfitting yourself in the virtual racing helmet you've selected.

When users register to race at the in-store kiosk, for example, they’re offered the chance to provide a handful of information to personalize their racing experience. From inputting their name and chosen country to represent, to uploading a photo of their face overlaid with a custom helmet rendered much like an AR selfie filter, participants can immediately imagine themselves in the racing cockpit. After selecting a team to race with, they get to “meet” their coach: racers Max Verstappen (Red Bull team) and Lewis Hamilton (Mercedes-Benz AMG), who offer advice before the race on a seamlessly integrated mobile site and even react to users’ performance afterward.

Of course, in a competitive experience like this, people want bragging rights, so real-time performance results are key. These are offered in metrics like the user’s driving speed and time around each lap. “Racers can take the data from the race and compare how well they did against other people, providing additional insight to their takeaway video,” says Kenmore, referencing the video users receive after completing a race. This personalized takeaway portrays highlights from the race, allowing them to remember the experience or share out to friends.

From pumping up participants as they prepare for the race to offering personalized feedback reactive to their unique performance, the NYCGP experience is built around inspiring a drive for performance and success within a friendly competitive environment—and that’s where the story behind the brand shines through. It’s through these moments that the new flagship store effectively tells the brand story to an audience that might be unfamiliar and unaware, building a strong personal connection in the process.

Monk Thoughts [The store is] a visualization or embodiment of our presence in this market, and New York in particular.

Puma set out to achieve precisely this in opening its first North American flagship store last week on 5th Avenue, New York City’s premier shopping street. Aiming to immerse shoppers in a seamless mix of technology, art and creativity, the store offers several opportunities for shoppers to engage directly with the brand through apparel customization, in-store classes on printing with streetwear brand Chinatown Market, and smart mirrors that help shoppers browse alternative colors and styles.

“This serves not only as a platform for getting product across, but also as a visualization or embodiment of our presence in this market, and New York in particular,” Adam Petrick, Puma’s Global Director of Brand and Marketing, told The Drum. In that respect, the store isn’t simply about selling products, but providing a space for consumers to engage with and better understand the brand.

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Perhaps the most interesting way the store achieves is through its motorsport experience, the NYCGP. The NYCGP invites consumers to (virtually) suit up, strap in and race through the surrounding streets of New York City in professional-grade F1 simulators developed by Evotek—the same simulators that real racers use. MediaMonks supported the experience by developing mobile sites for onboarding and offboarding, personalized registration via in-store kiosks and providing custom code to translate users’ racing performance from the simulator into a global leaderboard, updated in real time.

Build Awareness Through Brand Storytelling

The description above either excites you because you’re an F1 fan, or has you scratching your head asking: F-what? F1 racing isn’t as popular to North Americans as it is to the brand’s home in Germany and elsewhere in Europe, though the motorsport experience aims to change that in a personalized and exhilarating way. “Part of the drive behind Puma’s NYCGP motorsport experience was to help North America recognize F1 the way Europe does,” says Paige Kenmore, Experiential Sr. Producer at MediaMonks.

It also highlights the brand’s longstanding dedication to the sport through its racewear apparel and sponsorship of top teams like Red Bull and Mercedes-AMG, both of which are represented in the motorsport experience via brand ambassadors Max Verstappen and Lewis Hamilton. “[Brand] awareness is high, but actual understanding of all the things we’re doing on a daily basis isn’t as high as I’d like it to be,” Petrick told The Drum. By opening the conversation around the brand’s support for the sport, the motorsport experience serves as a great example for how to get those messages across.

“What’s really special about this experience is that this is brand ambassador focused, bringing the team celebrities into the experience to play a significant narrative role,” says Jessica Norton, Executive Producer at MediaMonks. “You’re engaging directly with the team members, and this gives the experience an added layer.”

spectator

Racers don't have all the fun: shoppers can enjoy spectating or cheering on friends as they compete.

And this gets at the heart of what makes the experience—and by proxy, the store itself—really special: it eases shoppers into a world that might be new to them in a way that showcases what sets the brand apart from other athletic wear brands. “The NYCGP makes the experience personal and intimate to New York City itself, placing it in a landscape that they’re familiar with,” says Kenmore. In fact, racers and spectators will see the Puma store right there on the circuit track, among other recognizable landmarks like Radio City Music Hall, Central Park, Columbus Circle and more.

Despite the focus on NYC as a locality, the experience isn’t designed just for New Yorkers in mind. “Outside of just the business opportunity that exists here, we’re really excited about the visibility that this store brings, not just in New York but the international contingent,” Puma North America CEO Bob Philion to FN. The NYCGP supports its international visitors by letting racers select a country to represent, resulting in a global competition that reinforces the brand’s presence around the world.

Make a Connection Through Personalization

A strength of retail has historically been its service and attentiveness to consumers. While modern online shopping has enabled great improvements in relevance of product recommendations, in-store experiences infused with innovative tech provide a great opportunity to connect with consumers through emotionally driven experiences that build brand love.

Monk Thoughts The NYCGP makes the experience personal and intimate to New York City itself, placing it in a landscape that they’re familiar with.

Puma’s not alone in this shifting retail landscape. We’ve recently seen this shift occur led by some of the most iconic names in the space. Toys R Us may have shuttered its doors in the United States in 2018, for example, the retailer has bounced back as TRU Kids Brands, with plans for experiential store-within-a-store concept. Macy’s has piloted something similar with its Story concept, in which products featured follow a specific and ever-changing narrative. And of course, no one can forget Apple’s “town square” concept that effectively transforms the store into a community space for learning about how to make the most out of the company’s technology.

The Puma motorsport experience similarly builds connection with consumers because every interaction—from registration to queueing for a race to offboarding—is narrative-driven and infused with personalization. Tying each interaction to the brand promise is key to differentiation, and the NYCGP succeeds in motivating races and building excitement to compete as they await their turn on the circuit.

To adapt to changing consumer behavior and intense competition, experiential retail can help brands strike strong emotional connections through telling their stories. How F1 is Racing Puma into the Future of Retail Leaving a mark on consumers that lasts well beyond the finish line.
brand storytelling experiential retail experiential retail future of retail f1 racing puma brand awareness

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