Retail media: how to generate revenue through the sale of advertising media

11 de April de 2024

On the 20th of March we organised a webinar at Cognodata in which we brought together experts from the retail sector to discuss the needs and opportunities that Retail Media currently has.

Moderated by Tania García, our retail&CPG director and expert in E2E solutions for Retail Media, the event counted with the participation of Diana Valdés, Commercial Excellence Digital Manager at Sigma (parent company of Campofrío) and Fernando Sánchez, CEO of ShopeakMedia and creator and ex-leader of Walmart Connect Mexico.

Do you want to know how Retail Media is becoming the leader in paid advertising? Continue reading…

Retail media in the focus of investment

Retail Media (RM) is the monetisation of physical and digital retail spaces where brands have the opportunity to promote themselves.

This advertising model is capturing the attention and investment that previously went to traditional media such as television and radio, moving to digital platforms that enable effective product promotion at critical purchase decision points.

Not only does this approach mark the “third wave of digital marketing”, but it has also managed to overtake television in advertising spend in the US, signalling a significant shift in marketing strategies. With more than 90% of European advertisers collaborating with retailers and 33% of retailers in Spain participating in this model, retail media is emerging as a key element in paid advertising.

What do brands expect from a retailer?

Retail media is such a new concept that most companies are just starting out in this field and do not yet have the structure or a specialised team in place. In the course of the webinar, Diana and Fernando represented brands and manufacturers, sharing the expectations and needs that each one needs to achieve business success.

Diana outlined some of the expectations brands have of retailers to maximise their impact in the Retail Media market. She placed great emphasis on the need for collaboration and organisation within the retailer, due to staff turnover during the sourcing process.

The 5 important points for brands are:

  • Visibility: having prominent visibility in each of the spaces where the brand is selling.
  • Organisation within the retailer: the high turnover of Retail Media sales staff is a considerable obstacle during the negotiation process, as it means constantly adapting to new contacts after having established significant leads. For brands, this stability in touch points is crucial.
  • Collaboration: Diana emphasises: “Although retail media is new to many people, if they take us by the hand a little bit, explain what they are doing and how they are doing it, I think it can help us to optimise campaigns and make us want to invest more.
  • Segmentation and targeting: for brands like campofrio, having visibility on which audiences can be selected is important to avoid making blind investments. The expectation is not simply to receive ROI once the campaign is over, but to actively participate from the beginning of the process.
  • Access to Data is very, very important: another essential aspect is Data, as having access to the results of your investments is vital to know how much of that investment is being allocated to each channel.

What a retailer needs for his retail media business

On the other side of the coin are retailers, who are responsible for providing advertising support to brands, Fernando tells us about the needs of a retailer to make their business successful in MR.

Change of mindset: retailers need to adopt a new perspective, seeing brands not as suppliers, but as their customers. This approach reflects a fundamental change in the relationship between retailer and brand, focusing on a common goal: increasing sales.

Capability development: retailers need to develop certain capabilities for retail media, especially the more traditional ones. Two important elements are mentioned:

  • Advertising technology (AdTech): develop advanced advertising technologies that allow brands to obtain detailed information on the performance of their campaigns, thus providing greater transparency and effectiveness.
  • Specialised team: retailers should build dedicated teams to serve brands as customers, ensuring attention and service that goes beyond the traditional supplier-customer relationship.

Technology and data: the mainstay of retail media

Throughout the webinar, they placed great importance on two fundamental pillars of business success: technology and data. These components are crucial to measuring the impact of campaigns and activating information in a way that benefits both retailers and brands.

Technology

Technology not only provides the scalability needed to manage multiple campaigns and brands simultaneously, but also provides the precision in measuring the results of each campaign.

This capability allows retailers to provide brands with the accurate information they need to evaluate the success of their investments and the selection of optimal tools for each sales channel. This appropriate choice and combination of technologies can be a key differentiator against the competition. While there is not, and will not be, one technology that solves all retail media channels, there should be an expert team recommending the best technology for each shopping channel.

For example, Kroger, an American supermarket, is one of the fastest growing retailers because of the way they are using data in their loyalty programme. Although it is not one of the largest in the US, its loyalty programme is the largest in the country.

Data

Data is a retailer’s most valuable resource, enabling them to understand consumer preferences and shopping behaviour. A team specialised in activating this data can use it to segment audiences and target specific products to consumers with high affinities, thus optimising the effectiveness of campaigns.

Retailers as a means of communication

There is no doubt that today, all retailers have immense potential to develop their retail media business. Fernando is clear that the key lies in taking advantage of the data generated through all retailer channels, such as shop traffic or loyalty programmes. For brands such as Campofrio, the retailer continues to be its main ally as a sales and information channel.

One of the lessons he has learned from his time at Walmart Connect has been the change in mentality that retailers need to make. Retailers need to see themselves not just as a point of sale, but as a means of communication in its own right. How do they achieve this? By integrating ads in a way that enriches the customer experience without being invasive and by using technology to insert products at the exact moment during the consumer’s shopping journey.

To achieve this, it is essential to have a dedicated team that balances media savvy with a deep understanding of retail. This enables smooth and effective communication with brands and ensures that advertising benefits all parties involved.


In conclusion, Retail Media represents a win-win-win model for all involved: retailers, brands and consumers. This approach not only enhances the shopping experience, but also enables more personalised and effective marketing strategies. With the support of advanced technology and strategic collaboration, Retail Media is positioning itself as a crucial component in the paid advertising landscape.

Would you like to know more?

Do not hesitate to contact us if you would like us to show you a demo with some of our use cases in the retail sector. We also provide you with the full video of the session so you can access the full content of the webinar, we hope you enjoy it!