3 things to know about retail media networks for e-commerce

The COVID-19 pandemic has led to a tremendous increase in e-commerce retail sales and the need for retail media.

Over the past few years, e-commerce has experienced double-digit growth. The e-commerce boom can be attributed to two main reasons: the increased willingness of customers to trust online-based retailers with secure payment methods and the ability of retailers to deliver products faster without compromising customer experience.

The increase in digital interactions in today’s lifestyle means businesses need to integrate and pivot faster. Otherwise, failure to do so will only result in losing customers. Besides retailers, a retail media network can also be used by any B2C entity, such as financial institutions and telcos, aiming to reach a wider customer audience in a single location. In fact, the latest projections shows that e-commerce retail sales will account for more than 20% of total retail sales by 2024. Retail media advertising is also expected to account for approximately one in five digital ads. Here are some things you should know about ecommerce retail media networks:

1. They provide an additional income stream

Most importantly, retail media opens up an alternative revenue stream. Since global e-commerce is a thin-margin business, advertising revenue provides a cushion to online marketplaces. If profit margins narrow for a few months, it can be a big blow to the retailer’s bottom line. However, retailers that succeed face advertising exponentially...