What are the characteristics of a successful retail media network and what are the key milestones for creating one?

Ultimately a successful RMN is one that drives huge incremental revenue & profit into the retailer by monetising ad spaces and customer data, while enhancing the customer experience and driving product sales.  A winning RMN will integrate with the wider media ecosystem and broad marketing strategies to attract investment from a wide selection of brands. 

1) Auditing your assets and opportunity for growth

The first step to launching an RMN is to understand the potential ad spaces that can be offered – across digital & physical assets, loyalty programmes and within customer data.

Then, are there areas for expansion such as new ad placements or conversion from cardboard to new digital assets?  Are there any limits or restrictions on how much space can be dedicated to advertising? Is any mindset change required within the wider business before more space can be offered up to advertisers?

Are there any weaknesses within existing POS implementation processes – do any internal systems or networks need improving before any media bookings can be guaranteed?

Areas for potential partnership opportunities also need to be factored in, most often with technology partners to support advanced targeting and measurement capabilities. 

2) Establishing your proposition – defining the target audience, shopper behaviours, and how these appeal to advertisers

As competition ramps up with more retailers offering up their ad spaces, audience relevance, size and understanding will be a key differentiator.

Key customer demographics need to be identified and reviewed against typical media buying audiences. A deep dive into customer behavioural data is required to bring the audience to life: Interests? Values? Purchase patterns? Basket size and frequency? 

Typical customer journeys from awareness to purchase across online and instore need to be mapped out in order to identify key engagement points to influence the customer’s decisions. These touchpoints then need to be cross referenced against the media asset inventory to ensure ongoing investment is prioritised in these areas.

3) Understanding the existing market and how your product and selling proposition sits within it

Existing RMNs, especially those in the same category and of similar size, need to be identified and reviewed.  Elements like the number of endemic brands, the size and value of the audience, the quality and quantity of available media assets as well as typical retailer business KPIs should be considered.

Its also vital to stay up to date with media industry trends and determine where there is un-met demand or room for innovation in the market to further inform the development roadmap.

The USPs need to be defined, what really sets the RMN apart from the others (audience value, superior data analytics, exclusive access to premium inventory, implementation excellence etc.).

Finally, a pricing model needs to be proposed that reflects a RMN’s market position, offering value to advertisers whilst maximising revenue & profit.

4) Planning your infrastructure and timeline for launch

 4.a. Define the objectives within a business plan – set clear goals for revenue and profit.

4.b. Outline the strategic roadmap – have a clear timing plan for development milestones based on the budgets and the findings of the initial review.

4.c. Map out the end to end RMN operations – consider the processes, structures and systems required to deliver a great end to end experience for advertisers and guarantee compliance.  Think about where marketing, ecommerce, instore retail and commercial teams need to work together and how they will interact.

4.d. Build the team – consider all the required capabilities at each stage of the roadmap and assemble the relevant cross functional team. What can be delivered in house via third parties, what training and development is required?

4.e. Develop the platform – choose the right technology stack for ad serving, targeting and reporting that can also integrate with existing systems; evaluate against the roadmap and budgets.

4.f. Create the inventory – define and package all the relevant media assets.

4.g. Create the rate cards – develop the competitive and flexible pricing structure for different ad formats and placements.

4.h. Market internally – ensure all the relevant teams are engaged and are working towards the same goals.

4.i. Test the operation – run pilot campaigns with select advertisers to test and refine the offering & processes and to produce case studies ahead of launch.

4.j. Go to market – promote the RMN to potential advertisers, have a clear marketing strategy that showcases the value proposition and success stories.

4.k. Ongoing optimisation – regularly review the strategic roadmap, considering any changes within the market and the RMN’s market position.  Monitor BAU performance and gather feedback to make data driven, tactical adjustments.

4.l. Deliver the key milestones in the strategic roadmap – ensure there is capacity and capability to deliver the required strategic developments whilst maintaining a smooth, tactical operation.

The above represents a broad approach to building a RMN, but it’s important to remember that each retailer has specific needs and challenges. There isn’t a one-size fits all solution so it’s crucial to spend time understanding the retailer’s nuances before tailoring a bespoke solution and roadmap.

Erinne Boyes

Operations Director at GIG Retail

Erinne has been with GIG Retail since 2020 in which time she has managed media proposition, planning, sales and operational delivery for one of the UK’s largest retail media networks, as well as in an advisory role in the launch and growth of the Poundland Media Centre. 

Prior to joining GIG, Erinne spent 15 years working for global media agency networks in client service and media planning and buying, primarily focused on large retail clients.