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. 

Predicted Black Friday spend is on the decline.

Online searches for Black Friday have shown a decline in recent years, with a significant drop in global search volumes of 70% in 2023 compared to 2019. Additionally, there is a 30% decrease in consumer searches for Black Friday in 2023 compared to the previous year.

This is also backed up by data from finder.com, which looks at spending in the UK and again predicts a 23% drop (2023 versus 2022) in consumer spend on Black Friday—dropping from £3.9 Billion in 2022 to £3 Billion in 2023.

According to the data, this reduction is primarily attributed to a decrease in planned spend per person, possibly influenced by factors such as inflation and the cost of living, i.e. people having less disposable income to spend on more discretionary parts for their budgets.

We use MMM to understand how Black Friday impacts our clients’ business.

By using Market Mix Modelling (MMM), which is a statistical evaluation technique which takes into consideration all factors which impact on sales including media, price, economy, seasonality, and promotional discounts, we are able to quantify the impact of Black Friday on our clients' businesses. You can find a sample analysis for a major retailer below.

The pink bars in the chart show that seasonality hits a peak in November each year—which from our weekly models we can determine is the impact of Black Friday—and has a seasonal decline in December. The green bars show the further impact of changes to discounting over the years.

There are a few conclusions we can draw from this for the client:

• Black Friday has a “brought forward” sales effect: MMM uncovers a brought forward sales effect caused by Black Friday discounts. Following the peak in sales during November, there is a subsequent decline in December. This indicates that customers trained to buy during the discounted period may have pulled forward their purchases, affecting profitability. Evaluating the incremental profit from Black Friday against the potential loss in December sales at full margin is crucial for assessing Black Friday's overall effectiveness.
• Consistent Effectiveness: Effectiveness of Black Friday is not declining over time. The pink bars in November are not diminishing over the years, meaning this client is not seeing a drop in effectiveness for Black Friday.

So we are not seeing a drop in effectiveness for this retail brand, but what about others?

When we compare this to a selection of other brands we work across in the table below, you can see that generally the uplifts from Black Friday are consistent across time, and not diminishing. In the table below, three brands show a static uplift from Black Friday over the years, in pink. In the case of our manufactured goods brands, the uplift increases—though this is in line with the brands' base sales growth.

What all these brands have in common is that not only are they supporting Black Friday with discounts—more importantly, they’re doing it along with media investment. The media is working to remind customers that the offer is out there, and also to entice away from other competitors in the market.

So whilst we may see a general drop in consumer spend, our analysis shows that brands that support Black Friday with media can see a consistent, healthy impact.

Recommended Strategies for Success:

To continue benefiting from Black Friday, brands should consider the following strategies:

• Support Black Friday with media: Utilize media to set your brand apart from competitors and maximize visibility during the event.
• Assess incremental profit: Evaluate the incremental profit gained from Black Friday against any potential loss in sales during subsequent periods.
• Maintain consistency: Consistently support Black Friday over time to sustain its effectiveness and capitalize on customer engagement.

The effectiveness of Black Friday for your business remains dependent on various factors, including media support and the ability to manage “brought forward” sales effects. Brands that strategically leverage media and evaluate the profitability of Black Friday can continue to succeed in this dynamic retail event.

For more information on how we can help measure drivers of growth for you business, check out our Measurement expertise.

Everything to know about Buy with Prime.

Buy with Prime is Amazon’s latest strategic program launched in April 2022, allowing Prime members to utilize their Prime benefits on eligible purchases on a brand's direct-to-consumer (DTC) site with fast, free shipping and a checkout experience millions of shoppers trust. Since then, Buy with Prime has been expanded to all US-based merchants. A notable detail is that you do not need to be an Amazon Seller to participate in this program, meaning you can offer Buy with Prime on your ecommerce site without showing up on Amazon.com.

“Buy with Prime is a brilliant move by Amazon to move upstream of DTC and offer the biggest benefit of a Prime membership—free two-day shipping—without having to go to Amazon's website,” says John Ghiorso, SVP of Global Ecommerce at Media.Monks. “This is a strategic move by Amazon to address one of its biggest threats: customers bypassing Amazon altogether in their ecommerce journey.”

By clicking the Buy with Prime button, shoppers can check out by signing into their Amazon account. The payment method and shipping details are pre-populated, which allows a seamless experience for shoppers to conveniently make a purchase. 

Buy with Prime lets brands build strong customer relationships and brand loyalty while offering conversion-driving benefits. Amazon Prime members see the Prime logo and delivery promise on eligible products, which signals that the item is available for free delivery and easy returns—a win-win for both consumers and brands. Check out even more benefits below.

Increase conversion rates. 

The most apparent benefit of Buy with Prime is the potential increase in conversion rates. According to Amazon, the program has been shown to increase shopper conversion by 25% on average. This means shoppers are more likely to place an order when Buy with Prime is available. 

“I’m most excited about the increases in conversion rates (on average 25%) early merchants have seen since implementing Buy with Prime on their websites,” says Christina Bender, Director of Amazon Partnerships at Media.Monks. “Buy with Prime reduces the friction for the end customer. Additionally, the Buy with Prime team constantly updates their product, listening to customer and partner feedback.”

Offload the logistical stress from online purchases. 

As brands expand their online presence and ecommerce grows in popularity, they will need to strategize the most taxing part of selling online: handling shipping and returns. Amazon Prime has changed consumer behavior tremendously, so much so that shoppers now expect deliveries in two days. Retailers who don’t offering similar timelines often get overlooked as a result.

“The biggest benefit to Buy with Prime for Amazon partners is the time they will get back,” says Scott Miller, Director of Business Management at Media.Monks. “By outsourcing the payment and delivery process to Amazon, brands will free up their employee’s bandwidth to focus on what matters most: customer acquisition, satisfaction, and retention.”

With Buy with Prime, brands can take advantage of Amazon's vast logistics network and offer the same reliable shipping and easy returns that Amazon Prime members expect from the online retailer. This can save brands significant time, resources, and money on logistics and customer service, allowing them to focus on what they do best: creating and selling great products.

Access to a loyal customer base. 

Brands can tap into the millions of U.S.-based Prime members who trust and prefer the Amazon.com experience, allowing brands to build strong customer relationships and brand loyalty. When a brand joins the Buy with Prime program, their products become visible to millions of Prime members on Amazon.com and across Amazon's mobile apps, which can significantly increase brand visibility and drive more sales. Another example of integration between the Amazon platform and a brand’s own are customer reviews, which further build trust.

“The recent announcement of having the option to display customer reviews from Amazon.com within their ecommerce store helps brands showcase the positive customer feedback they have already received about their products,” says Jordan Kushan, Senior Account Manager at Media.Monks. “Customers get the benefit of seeing what is popular from a trusted source. It is a clear win-win."

Optimize your Amazon strategy with Buy with Prime analytics. 

Finally, the Buy with Prime program also provides brands with valuable data and insights that can be used to optimize their sales strategy. This data can include customer behavior, purchase history, and demographics, which can be used to create targeted marketing campaigns and improve the customer experience.

Get started with Buy with Prime now.

If you’re interested in adding Buy with Prime to your website, confirm your eligibility here. After setting up Buy with Prime, you can identify which products that will offer the Buy with Prime button. Then, simply add the Buy with Prime button code to your existing website and you’re good to go.

In today's fast-paced and highly competitive ecommerce landscape, the Buy with Prime program presents an enormous opportunity for brands to grow their DTC stores and take advantage of the Amazon platform—all while increasing conversions and fostering customer relationships. By joining the program, brands can leverage Amazon’s extensive distribution infrastructure and take advantage of the wealth of data and insights that Amazon offers. 

Media.Monks is an Amazon Ads Advanced Partner, and our dedicated team of experts specialize in growing brands' businesses on the Amazon platform. We can help you make the most of the Buy with Prime program and drive more sales and revenue for your brand. 

Want to strategize a winning game plan for your brand to grow sales and relationships in 2023?

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.

In this Social Bite, we explore what live commerce can be and how it can help you not only activate your audience in the moment, but also build a relationship into the future. Discover the different forms of live commerce and the roles that brands and their ambassadors take to inspire their audiences.

Historically, live commerce has been most popular in China, where the format makes up 10% of the overall ecommerce market. Accelerated in part by the pandemic, live commerce has continued to gain traction in the Asia-Pacific region. Now, brands elsewhere around the world are taking note—and so are social and retail platforms, both of whom are experimenting with new features and revenue streams to bring live commerce to life. Serving the need for new ways to engage their customers in social, shoppable and entertaining experiences that blend brand love and conversion, live commerce combines spectacle, presence and interchange to build excitement among highly engaged audiences.

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.

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.

Typically, brands whose websites aim to provide content rather than serve as an ecommerce platform are well versed in the benefits of ad monetization. After all, it can be the main—if not the only—source of income. But for retail companies whose main business relies on selling their products and services, ad monetization can be relegated to the background.

The truth is that with the right strategy in place, this monetization strategy can bring millions of dollars a year for big retailers. And yet, perceiving it as only a source of additional income is missing out on the other opportunities it presents to brands. Ad monetization can lead to new insights into your customers’ behavior and interests, elevate your first-party data strategy and even engage audiences by giving relevant recommendations that suit their needs. Here are some aspects to factor in as you delineate the optimal strategy. 

First-Party Data Reigns Supreme

The concept of ad monetization is closely tied to automation. When it comes to filling placements—whether in-app or on websites—most brands depend on third-party solutions like demand-side platforms (DSPs) or advertising SDKs. It’s easy to understand why: with little effort from the publisher, they manage everything from real-time bids to supply quality and viewability. The inventory is diverse, and it saves the brand from having to reach individual agreements with different vendors.  

For those reasons, DSPs can be quite profitable. But with increased awareness of the importance of data privacy and the imminent death of the cookie, the benefits of a strategy that relies on one’s first-party data come into sharper focus.

In opting for first-party ad monetizing solutions, brands may find that not only do they provide better results for advertisers but that in return, monetization also helps them learn more about their audience. “Visitors have the option to share with us what they do inside our website—including the ads they clicked on and the ones they chose to ignore,” explains Daniel Diniz, VP of Business Development. “Packed with the right data management platform, brands can draw valuable insights into what they can do to improve each customer’s experience.”

It’s a Win-Win Solution for Publishers and Advertisers

Retailers know—and care for—their consumers better than any external DSP ever will. They are more likely to know what products genuinely interest them, and how to present them without disrupting the experience. For advertisers, this means that establishing direct relationships with them equals higher click and conversion rates. “Applying our insights into what our consumers would be interested in seeing can yield better results for the brands we offer advertising space to,” says Diniz. “While we won’t be sharing the data our consumers trusted us with, they will witness an improvement in performance.”

In that process, it’s only natural for certain advertisers to get better results than others—something that publishers should identify as a source of knowledge. “If the brand you’re promoting is not seeing great results, it may be time to direct your audience to others,” says Diniz. Far from indicating that one’s placement is not valuable, or that ad monetization is not the way to go, a lack of performance simply means your consumers are not that interested in that particular advertiser.

Winning the Fight Against Ad Fatigue

On occasion, retailers worry that monetizing their website will only add to the existing ad fatigue. While this is a real issue, it’s oftentimes caused by the unregulated use of automated tools, as opposed to a personalized, data-driven strategy. As Teixeira explains, “Consumers are in constant pursuit of new recommendations and solutions to their existing needs. When done right, ads don’t have to be a nuisance—quite the opposite. They complement the experience.”

If a consumer is browsing through an ecommerce website, chances are they are already in shopping mode, meaning they are more open to ads—as long as they don’t seem forced. It all boils down to how we’re presenting them. “Showing visitors an ad they’ve seen a million times or a product they bought two days ago will surely leave a negative impression,” adds Teixeira. “Which only reinforces the importance of an ad monetization strategy that’s built on data-driven decision-making. That way, both the publisher and the advertiser can rest assured that the consumer is seeing a reasonable number of ads that match their interests.”

While there are no magic solutions when it comes to ad monetization, one thing is certain: having a dedicated team capable of creating data processing models and acting upon their findings will benefit all parties. There’s a lot to be gained from monetizing one’s website, as long as we’re factoring in the consumers’ preferences as well as the brand’s. “There’s no one-size-fits-all approach,” concludes Diniz. “Many opt for a dual model in which they save the premium placements for the advertisers they’ve established direct relationships with and manage the rest through a DSP, and that’s perfectly fine. It all depends on their ultimate goal.”