{"id":6826,"date":"2021-06-05T14:53:52","date_gmt":"2021-06-05T12:53:52","guid":{"rendered":"https:\/\/www.budget-box.com\/?p=6826"},"modified":"2025-03-26T12:01:08","modified_gmt":"2025-03-26T11:01:08","slug":"specialised-retail-players-grocery-store-chains-a-look-at-retail-media-in-2020","status":"publish","type":"post","link":"https:\/\/www.budget-box.com\/en\/specialised-retail-players-grocery-store-chains-a-look-at-retail-media-in-2020\/","title":{"rendered":"Specialized retailers & grocery chains: retail media in 2020"},"content":{"rendered":"

Retailers looking for alternative revenue streams and brands seeking to develop their visibility throughout the consumer\u2019s purchasing journey, especially online, increasingly turn to retail media<\/a> to meet their goals.<\/strong><\/p>\n

Amazon, who spearheaded this trend, has been taking advantage of its massive audience over the past several years: the online platform has been offering a paid service to advertisers<\/a> to increase their visibility on the website, thereby guaranteeing increased sales and ROI.<\/p>\n

Traditional brick and mortar retailers are following suit, in all sectors including food, electronics, hardware and toys.<\/strong><\/p>\n

But where does retail media stand today? What are some of the strategies used by retailers? <\/strong><\/p>\n

In this article you will find an overview of retail media in France, in the food and specialised retail industries, and key features to keep in mind when implementing a strategy:<\/p>\n

– to meet the retailer\u2019s monetising goals
\n– to let brands emerge throughout the customer pathway<\/p>\n

2020 : RETAIL MEDIA CONTINUES TO GROW<\/h2>\n

Retail media is increasingly becoming omnichannel<\/h2>\n

As you have most likely noticed, the digital transformation of retail was a lot faster in 2020. Consumers are omnichannel at their core<\/strong>, and use both e-commerce and brick and mortar retail for their purchases.<\/p>\n

In July 2020, 55% of French consumers stated they purchased food items both online and in stores (Criteo Retail Media study).<\/em><\/p>\n

We have also seen a strong surge in the ROPO effect<\/strong> (Research Online Purchase Offline)<\/strong>. Taking for example FNAC in France<\/a>\u00a0[article in French<\/em><\/p>\n

], 49% of customers first look up information online before purchasing an item in store (only 4% of buyers do the opposite, called showrooming).<\/p>\n

Consumer journeys are increasingly more complicated today, so retailers and brands alike must learn to broadcast their messages on all the channels their targets use, in a coherent and unified manner.<\/strong><\/p>\n

Some retail chains are beginning to offer a multi-channel retail media system. This is the strategy adopted by RetaiLink, FNAC-Darty\u2019s in-house media agency, through which it offers advertisers the opportunity to promote their products using different channels and formats<\/a>\u00a0<\/strong>[article in French<\/em><\/p>\n

]: digital (search or display), in store display, social media campaigns and\/or branded content, custom event planning\u2026<\/p>\n

\"\"<\/p>\n

Digitising in-store advertising spaces makes implementing an omnichannel retail media offering easier<\/strong>, and lets brands communicate the same message throughout the customer\u2019s journey.<\/p>\n

Arnauld de Saint Pastou, head of RetaiLink, explains how the brick-and-mortar store\u2019s purpose goes beyond shopping: \u201cOur stores have become crossroads for audiences [\u2026] brick-and-mortar locations have therefore become a channel, a crossroad where consumers can connect and experience the products\u201d. <\/em><\/p>\n

But how to unify your communication strategy across different formats?<\/strong> Through data obviously. With past purchases stored on loyalty cards, retailers collect a lot of information on their customers. This data in turn lets advertisers send the right message to the right target, and later analyse the results.<\/p>\n

POS, demo or tasting stands, flyers, etc., brands already use in-store retail media to emerge along the consumer\u2019s pathway. As retail media tools get digitised, brands can now go further in customising their messages and improve their interactions with consumers. But are they ready to invest in these new advertising formats?<\/p>\n

Brands are increasing their e-retail media investments<\/h2>\n

In terms of e-retail media usage, advertisers have not all reached the same level of maturity:<\/strong> in 2019, according to the Publicis and Criteo e-retail media indicator, 98% of respondents had invested in e-retail media,<\/strong> but only 19% of companies allocated over 15% of their spending to e-retail media.<\/p>\n

It should be noted that the electronics devices industry is the most advanced in this area: a third of manufacturers have invested over 15% of their budget.<\/p>\n

Regardless of these differences, there is a general increase in company usage of e-retail media<\/strong>. In 2019, 77% of them had increased their investment from the previous year<\/strong>, and over 80% planned on increasing their budget for 2020.<\/p>\n

They stated the following as their 3 key goals:<\/p>\n

    \n
  1. Increase online sales<\/li>\n
  2. Create a new point of contact with the consumer<\/li>\n
  3. Increase brand awareness<\/li>\n<\/ol>\n

    2020 and the Covid-19 crisis<\/strong> showed us the importance of investing in digital retail media. With the drop of attendance in superstores and the increased use of e-commerce (+2.5 million according to Kantar), digital retail media is an efficient way of staying in touch with key target audiences and to be visible.<\/strong><\/p>\n

    Additionally, it is very likely that these new customers will continue using e-commerce platforms in the long run. It\u2019s actually what Laurent Kircher, Senior e-commerce manager at Unilever, shared with us about the click and collect channel<\/a>: \u201cWe expect that about 30% of the new users of click and collect will keep using it in the future. It\u2019s absolutely huge, this propels us two years ahead\u201d. <\/em><\/p>\n

    Everything points towards brands increasing their digital retail media budget<\/strong> to activate their consumers where they currently are: on digital pathways.
    \nThe only hurdle is having retailers offer advertising opportunities on the relevant pathways so advertisers can use them.<\/p>\n

    2020 : RETAIL MEDIA STRATEGIES AMONG RETAILERS<\/h2>\n

    Retailers are diversifying their e-retail tools<\/h2>\n

    Sensing the trend getting stronger, retailers are increasingly including retail media in their relationships to their suppliers<\/strong>, either directly through commercial agreements, or through their overall commercial relationship.<\/p>\n

    And retailers know they have to go all in to make their retail media attractive to advertisers, so they are developing different formats, especially digital.<\/p>\n

    On the one hand, on e-commerce websites:<\/p>\n