Retail Media Networks… Beyond the buzz

Written by Sam Hegg, Head of Strategy & Planning, Coles 360

After 20+ years in various roles at holding groups here and abroad, making the leap to retail media has been one that has personally unlocked new energy, new challenges, and new connections. It’s great to be at the heart of a fast-growing area of our amazing industry, but the media buzz and big numbers quoted are creating the sense of a gold rush and something retailers can simply turn on. 

So, what are the realities I’ve observed since taking the leap?  

Respect the past while galvanizing for the future.  

It will be almost certain that ‘retail media’ or trade spend as it can be known has existed inside most retail businesses in some form for a long time. Before launching a new retail media network (RMN), existing practices need to be understood, not just commercially, but through a capability and operational lens. Knowing where you’ve come from will ultimately help frame the future strategy and approach. It is key to listen and collaborate with commercial teams, tech teams, marketing functions and channel specialists to name a few.

Often you will find that these functions will have KPIs that may not align with your own. For this reason, it is key to achieve common understanding across your organisation. Demonstrate to leadership and connected functions that a modern RMN can accelerate a customer strategy, not just deliver a commercial gain.  

Challenge and innovate but stay customer centric.  

At any moment in time, there will be a dozen or more product opportunities in front of you; across instore, onsite and offsite channels. These will have varying degrees of complexity, stakeholder impact, capex and opex factors as well as topline and bottom-line growth profiles. It’s easy to rush to implementation but first consider whether the opportunity creates sustainable value for your supplier partners, your own business and most importantly, the customer.

It’s easy to rush to implementation but first consider whether the opportunity creates sustainable value for your supplier partners, your own business and most importantly, the customer.

If you aren’t ticking all three boxes, it’s probably not a good idea. Most likely you have rich first party data and transaction level insight which when connected by a media interaction is very powerful but comes with responsibility. Think about how you can you ideate, pilot, socialise and scale for growth and with bigger investments (most likely platforms and technology), and consider whether to build, buy or partner. There are plenty of success stories and cautionary tales in the global retail media ecosystem… build a network across markets and share learnings… being a fast follower can be a huge advantage. 

It’s not just what you sell, but how you sell it.  

There’s a good chance that your RMN needs to service everyone from the family business where the owner does everything, through to the globally connected eComm lead at a multinational FMCG… and that’s before we consider the role of agencies and adtech in the supply chain. Instantly incremental, high margin revenue from retail media is attractive in a typically low margin business, but selling retail media is a very different competence to core retail practices...you are essentially moving from buyer to seller!  

Instantly incremental, high margin revenue from retail media is attractive in a typically low margin business, but selling retail media is a very different competence to core retail practices...you are essentially moving from buyer to seller!  

Determine what technology, data and talent investments are required for an effective combination of a managed service, self-serve technology and first party data commercialisation and don’t rush to do them all from day one. While retailers are working through these questions, at the same time, brands are also working through what this new landscape means for their business too. The holistic management and optimisation of above the line and below the line budgets (what is the line by the way?!), organisational re-design and building new capabilities are just a few of the big rocks FMCG businesses are facing into at the moment. Meanwhile, progressive agencies and holding groups see the opportunity in retail media and are connecting capabilities, making smart acquisitions and creating positive agitation for industry standardisation. 

What this all points to is the need to listen.

Listen to the stakeholders within your organisation who can help you realise your RMN vision, listen to your supplier partners in all their shapes and forms, listen to the wider media industry and most importantly, listen to your customer. When the best experience wins, a thriving RMN is one that creates growth for all.