What are innovative formats in retail media?

In 2022, retail media will record sales of 887 million euros in France, representing growth of 30% compared to 2021. In fact, this market accounts for 10% of online advertising, and promises to continue growing in the years to come.¹. Since it is as close as possible to the act of purchase, this new format is indeed favored by digital advertisers, who need to offset the rising cost of advertising and the end of third-party cookies scheduled for 2024. In three years' time, between 60 and 70% of retail media revenues will be net gains for retailers, according to a study by Google and Boston Consulting Group.². But at a time when major companies are (almost) all developing their own retail media offers and platforms, what are the most innovative formats?

1 The flagship format for retail media

One of the most popular retail media formats is "retail search", or sponsored links integrated into ecommerce site search engines. In 2022, this alone will generate sales of 559 million euros, an increase of 39% on the previous year.³. This is one of the ways in which this new market developed, through the American giant Amazon in the 2010s. Despite the rise of popular marketplaces such as Rakuten or CDiscount, Amazon has effectively overtaken its competitors thanks to the auctioning of advertising space on its site, via Amazon Advertising⁴.  

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Retail search then developed thanks to audience extension offers, which consist in targeting retailers' customers while they are browsing on another site. As Tanguy Le Falher, Head of Retail Partnerships at Citrus Ad, explains in an article for eMarketing.fr⁵this opens up retail media opportunities to non-captive brands - which are not sold by retailers - such as banks or insurance companies, which are interested in targeting specific audiences. When] the waiting time to advertise on a retailer's site is close to a year, [it also allows them] to benefit from advertising space more quickly".

2 Innovative ideas

1 The golden age of video

Retail media is obviously based on the content most viewed by users. In 2023, videos are indeed the most watched type of media on the Internet, with 3.48 billion viewers worldwide according to Statista.⁶. Similarly, the audience reach of online videos is expected to average 92%.⁷ and 82% of Internet traffic is generated by this medium⁸according to a Cisco study. Advertisers are no strangers to this data, as McKinsey reports: on average, 30% of them favor this format in retail media.⁹. This is why retailers such as Walmart have chosen to develop a retail media offering through sponsored videos on their sites and mobile applications, via Walmart Connect. According to the U.S. company, this would meet a need for suggestion on the part of its customers, since 51% of them claim to discover an average of one new product per month on Walmart's digital platforms.¹⁰.

2 Rich media ads 

In digital advertising, the term rich media refers to interactive ads that create a closer link with consumers. According to professionals in the field, this type of ad achieves a click-through rate 2.67 times higher than traditional advertising.¹¹. According to a Qwarry survey, rich media reduces ad bounce rates by 60% and increases conversion rates by 64%.¹². In fact, unlike a traditional video format, rich media enables web users to interact directly with the ad, thereby increasing their engagement. In fact, rich media is a natural fit with the development of online retail media offers. 

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To engage consumers, rich media can take many forms. In 2023, for example, the Ariel laundry detergent brand collaborated with the Eskimi company to develop an advertising mini-game. Internet users had to remove bacteria and dirt from a blouse in order to access a link to the Ariel brand website offering advice on cleaning clothes.¹³. The fun aspect of the game naturally encourages users to take an interest and try to win. For its part, cosmetics brand Selly Hansen launched an ad inviting consumers to virtually try on their new nail polishes thanks to augmented reality. Once again, the interactivity of content increases web-user engagement and, as a result, traffic to the brand's site or products.¹⁴. 

3 The appeal of personalized content 

Personalized content is an unavoidable lever in a company's advertising strategy. In fact, 70% of BtoC marketing professionals say that targeted content has become increasingly important over the past year, according to a study by the Content Marketing Institute.¹⁵. It also responds to consumers' need for personalization, as confirmed by a McKinsey&Company study¹⁶. In retail media, targeted content makes it possible to engage web users in an immersive, contextual shopping experience. In this way, the advertiser promotes its products to consumers at the most opportune times and places in their online journey.

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For example, the Mealz solution enables FMCG advertisers to sponsor meal ideas on the websites of several French food retailers. In this way, food brands can highlight the culinary power of their products, right at the point of purchase. For their part, the brands' customers discover new uses for their products, and are accompanied by the brand right into their kitchen. 

4 The rise of DOOH 

DOOH(Digital Out-Of-Home) advertising is gaining momentum with the development of retail media. As interactive as it is attractive, this advertising format is expected to generate over $13 billion in sales in 2023, 26% more than the previous year, according to Statista. By 2028, its growth is estimated at 57%, for more than $20 billion in sales.¹⁷. These figures testify to the importance for advertisers of integrating it into their retail media strategy. Alban Duron, Marketing Director of JCDecaux, explained in a CBNews article that "[DOOH] enables relevant, contextualized campaigns (geolocation, exogenous data such as road traffic, weather, consumer moments, events or brand highlights). [It] frees up creativity for advertisers in favor of campaigns that emerge and engage at the most strategic locations."¹⁸.

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In France, DOOHs are particularly popular with local food retailers, focusing on personalizing the offer to key consumer moments. In 2022, ice cream brand NUII boosted its sales by 17% through digital displays in the windows of 147 Monoprix outlets. As soon as the outside temperature rose above 20°C, the screens broadcasted NUII ads at strategic times. Aperitif cookie specialist Michel & Augustin boosted sales by 12% with 490 DOOH Proxi screens linked to a sporting event.¹⁸. 

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