While RMNs are most broadly adopted among brands in the consumer packaged goods industry, non-retail and specialty brands are increasingly turning to RMNs for effective performance marketing in a brand-safe environment.

According to research from the Association of National Advertisers, 74% of advertisers using RMNs are in the CPG sector, followed by health and beauty (8%). Less than 5% work in the technology, consumer electronics or services industries. However, according to a 2022 McKinsey survey, more than 75% of non-CPG advertisers anticipate increasing spend with RMNs in the next year. This includes advertisers in consumer electronics (92%), apparel and footwear (76%) and other specialty retail (75%).

“Non-CPG brands — from electronics brands to brands not sold at retailers — have a more nuanced relationship with RMNs,” said Jen Jensen, vice president, Best Buy Ads partner and category marketing at Best Buy. “These brands have their own data sets, etc., but any brand that wants to target audiences based on first-party data can benefit from retail media networks.”

Omnichannel display aimed at audiences showing intent is driving sales

According to Jensen, one of the reasons that RMNs are beneficial in non-CPG spaces such as consumer electronics is the longer consideration window during which shoppers research their purchases.

“With CPG, you see high frequency but low consideration, so customers shop often — but the ability to influence the decision is lower,” explained Jensen. “With non-CPG, the customer spends more time considering and researching but makes purchases less frequently. Specialty retail also has a much different mix of customer journeys and omnichannel sales. This comes into play with these brands’ RMN activations because it influences media mix, measurement and, ultimately, where they can meet customers.”

Considering this, one leading electronics brand worked with Best Buy Ads to increase sales week-over-week during a critical launch period.

Search audiences and consumers demonstrating intent were identified using Best Buy’s first-party data. These audiences were targeted with a variety of cross-category, high-impact display placements across desktop, mobile and app. As part of the campaign, in-store advertising was also used, particularly at the point of sale, to increase urgency and reduce hesitation on the part of shoppers. Display units and in-store advertising emphasized product arrangement and promotional messaging.

The omnichannel campaign resulted in an 18% increase in online revenue, a 47% increase in online units sold, a 41% increase in product page views and an 18% increase in omnichannel revenue week-over-week.

Brands are leveraging first-party data to segment new audiences and boost engagement

RMNs are not only for endemic brands sold at specific retailers. Products and services exist on a spectrum of relevancy, including complementary, near-endemic and entirely non-endemic brands.

For example, Best Buy Ads was working with a meal kit company that needed a unique way to reach new customers. To do so, the brand sought to diversify its marketing tactics to …read more

Source:: Digiday

Author: Aaron