Retail media has quickly become a highly effective way for brands to reach their target audience and drive sales. However, before launching a retail media campaign, there are several key factors that brands should consider in order to achieve success. In this article, we’ll dive deeper into these factors and provide some tips for brands to make the most of launching on a new marketplace.
Know Your Target Audience
One of the most important factors to consider when launching a retail media campaign is understanding your target audience. This includes their demographic information, interests, behaviors, and purchase habits. By understanding your audience, you can pick the right marketplace to invest in.
Each marketplace has its own demographic that it caters to and lining up your product with the best retailer will set you up for success. We have found that:
- Target shoppers are typically more affluent, millennial parents or urban dwellers.
- Walmart shoppers are focused on finding a good deal and located in more rural parts of the United States.
Partner with the Right Retailers for Your Brand
Choosing the right retail partners for your campaign is crucial to its success. Not all retailers are created equal, and some may be more effective than others depending on your target audience and goals.
Once you have an understanding of what retailers will tailor well to your target audience, understand the limitations and benefits of your retailer of choice. The main limitation within retailers beyond Amazon and Walmart, is getting accepted to sell as retailers like Target are invitation only.
Each marketplace also has differing fee structures to sell on platform. Most have a referral fee that ranges from 5-15% that will have to be taken into account when calculating overall profitability. It’s beneficial to have a clear understanding of all costs that will occur when selling on a new marketplace.
It’s also important to consider the different advertising options available on each platform. For example, Amazon offers Sponsored Products, Sponsored Brands, and Sponsored Display ads, each with different targeting options and ad formats. Choose the advertising options that best align with your goals and audience.
Customize Optimized Content by Retailer
Creating high-quality content that is optimized for each retailer’s platform is key to effectively engaging your target audience. This includes product descriptions, images, and videos that are tailored to each retailer’s audience and guidelines.
To optimize your content, start by following the best practices for each platform. Each retailer will have differing top keywords, character limits, etc. that will have to be adjusted accordingly, without straying too far from your unique brand voice.
Don’t forget to consider the user experience when creating content. For example, if you’re creating a product video for Amazon, make sure that the video is mobile-friendly and doesn’t require sound to be effective. This will ensure that your content is accessible to a wide range of users and that it’s optimized for the platform’s user experience.
Expanding into new ecommerce marketplaces will be the key to growth in 2023. To ensure you are launching successfully, prioritize picking the right retailer for your demographic, have a strong understanding of any limitations, and provide curated optimized content for each marketplace.
Direct Agent’s eCommerce Team specializes in launching brands across multiple marketplaces. If you’re interested in learning more about Direct Agents’ Amazon offerings and how our eCommerce team can help your brand grow on multiple retailers, email email@example.com to learn more.
Bridget Menne, Client Success Manager, Direct Agents
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