The Rise Of Digital
Retail Media
THE MARKETER’S GUIDE TO DIGITAL RETAIL MEDIA
INTRO
At Exverus Media we believe
the future of media is already
here and it is retail media. With
Amazon and Walmart leading
the way, consumers are shifting
to an omnichannel purchase
journey when it comes to
where, when and how they
shop. To be successful in the
future (not to mention right
now), brands and their media
mixes must meet consumers in
this new world to have a say in
the choices they make.
In fact, retail media is no longer
just about driving an immediate
purchase. It is the price of entry
in reaching modern consumers.
Retail media is the new “digital
shelf” that replaces the slotting
fees and trade promotions
brands have historically had
with retailers. Or as one
researcher puts it, retail media
is the “rent” that replaces the
storefronts brands are shedding.
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THIS WHITE PAPER WILL SHOW YOU:
What exactly is digital
retail media?
Where brands are
investing in digital retail
media
WHY NOW?
Three primary trends have
accelerated the need for
genuine omnichannel marketing
powered by digital retail media:
1. The rise of fast shipping and
delivery
2. The COVID-19 pandemic
3. The downfall of cookies and
third party data
In recent years, 1- and 2-day
(not to mention 2-hour) delivery
has trained consumers to find
the easiest, most frictionless
method of getting the products
they want. From COVID-19,
Why digital retail media
is critical for brands
How brands are
employing digital retail
media
we saw consumer adoption of
e-commerce accelerated by 3-5
years in less than three months.
And with third party digital
targeting and tracking going
away, retailers have recognized
that the data they own on their
customers and their purchases
is a valuable asset that they can
both sell and use to power more
sales for themselves.
As these three factors combine
with the technology and
resources of major retailers
like Amazon, Walmart, Kroger,
Best Buy and others, the rise of
digital retail media is one of the
most important new areas for
brands to master.
READ ON...
WHAT DO I NEED TO SCALE MY ADVERTISING IN DIGITAL RETAIL MEDIA?
The question we receive
most at Exverus is what a
brand needs to effectively
scale its advertising in
digital retail media. In our
experience, there are three
things you’ll need:
1. The Right Distribution
Whether your own storefront
on Amazon or shelf space
at a retailer available on
Instacart, your brand must
be sold by the retailers who
are active in the retail media
space (see a complete list of
the top retailers later in this
document).
Speaking of your goals,
working directly with your
2. The Right Budgets
retailer, sales and agency
teams to set big but
Scaling your digital retail
achievable goals should be
media presence is different
step one of the planning
for each brand, product and
process. And remember,
retailer. Make sure you are
not all sales data is created
working with a team that
equal - verify when retailers
knows how to size and scale are reporting their own ROAS
the opportunity and then
figures and “grading their
sets budgets that will achieve own homework.”
your goals.
SO WHAT IS RETAIL MEDIA?
Retail media
should be a
native part of
the shopping
experience.
You may be wondering what
we mean by “retail media” and
why it deserves to be a topic of
discussion for brand marketers.
In reality, retail media is nothing
new. If you have ever received
a flyer from your local grocery
store, then you know what retail
media is.
Today’s retail media still
includes those free-standing
(printed) inserts, but it has
gone digital and achieved an
unprecedented scale. That is
what we are talking about here
– the power of digital retail
media for modern brands.
Unlike broad consumer media,
where the brand hopes to
intercept a consumer during
his or her entertainment,
commuting or informationseeking time, retail media
typically (though not always)
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3. The Right Metrics
reaches the consumer while
shopping or thinking about
what to buy. The term “digital
retail media” typically applies to
paid advertising that sits within
a retailer’s website or other
retailer-owned channels (like
Amazon.com), although it can
also extend into other media
channels when a retailer’s
shopper data is leveraged (like
Amazon’s display ad solution
which applies Amazon user data
across 1,000’s of websites).
Instead of interrupting, retail
media should be a native part
of the shopping experience. It
is often expected, relevant and
solution-oriented. And, by being
directly integrated with the
retailer’s ecommerce and instore sales platforms, the brand
receives valuable data about
how consumers are responding
on the back end.
WHO ARE THE PLAYERS
IN RETAIL MEDIA?
KEY RETAILERS
Not surprisingly, large retailers
who sell popular product
categories are the major players
in retail media. While Amazon
has cornered a massive share
of the market, other retailers
who sell popular, high volume
categories are growing every
month. Brands primarily in the
food, beverage, apparel, beauty,
home furnishings, toys and
consumer electronics categories
are finding new opportunities to
increase their digital presence.
This has led to an explosion of
digital media companies and
divisions created exclusively to
buy and sell ad space on retailer
properties (Walmart, Target,
Kroger, Albertson’s, Best Buy
and more). The top five players
in terms of audience are below:
MONTHLY USERS IN MILLIONS (U.S. ONLY)
200
US Audience (MM)
Per Month,
Aug 2020
150
100
50
0
Amazon
Walmart
Target
Kroger
Albertsons
Source: site proprietary data
NEXT UP:
OP RETAIL
T
MEDIA PLATFORMS
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TOP DIGITAL RETAIL MEDIA PLATFORMS
TYPES OF ADVERTISING
OFFERED
PLATFORM
BACKGROUND
J Amazon DSP
AMAZON
Amazon has become a critical
distribution and sales channel
for nearly every type of advertiser.
Beyond e-commerce, Amazon is
a leading content platform and
content distributor through its
increasing investment in FireTV,
Prime Video and Music. Advertisers
have the opportunity to appear
in Sponsored Search Listings,
Promoted Product Listings and
through a variety of display and
video ad formats across Desktop,
Mobile and OTT.
The largest US retailer at over 4,700
locations, Walmart’s proprietary
inventory and consumer data
feeds omnichannel shopping and
advertising. Shop both in-store and
online using Walmart’s eCommerce
Website & App.
J In-grid Search Ads
(Sponsored Products)
WALMART
TARGET/
ROUNDEL
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Target is the 8th largest retailer in
the U.S, and has invested in media
in a big way. Whether carried at
Target or not, brands can partner
with Roundel to build and reach
custom audiences using Target’s
1st party transactional data across
Target.com & App, Social, plus
curated network on Desktop,
Mobile, App, CTV, Criteo SPA,
Google Search and Target.com.
J Amazon “Search”
J Sponsored Brands
J Sponsored Display
J Sponsored Products
J Audio Ads
J Video
J Custom
J ROAS Attribution Data
J Buybox Search Ads
(Sponsored Brands)
J Display Ads
J Walmart Shopper Data Provides
Closed Loop Attribution
J Omnichannel Display Media
(Desktop and Mobile)
J Video Media (CTV, Desktop,
and Mobile)
J Closed-loop Media Exposure
Attributed Purchases at Target
through ROAS
TOP DIGITAL RETAIL MEDIA PLATFORMS
PLATFORM
BACKGROUND
Leading supermarket in the U.S. and
largest U.S. grocery website with
kroger.com eCommerce (Desktop
& Mobile) and App
KROGER
ALBERTSONS
PERFORMANCE
MEDIA
CRITEO
INSTACART
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Powered by 84.51, Kroger Precision
Marketing includes PromoteIQ
(think Sponsored Brand Listings on
Amazon, but exclusive to Kroger
owned Digital Properties).
TYPES OF ADVERTISING
OFFERED
J Addressable TV, Pinterest,
Facebook, Influencers, Video,
Display & Native, Pandora, Direct
Mail/Coupons, Push Notifications,
Email, Search
J Offline and online sales matched
back to specific households
through loyalty card data to
measure sales lift and ROAS/
Another large U.S. retailer group with J Display Ads (Mobile, Desktop),
eCommerce Website, Sponsored
Social Posts (FB/IG/Pinterest/
Search, App, Social Media, Influencer,
Snapchat), Influencer Social
Albertson Co Digital Properties,
Posts, Email Blasts, Circular Net
Email, Retail Promotions, Traditional/
Downs, Digital Billboards/Kiosks
Digital OOH.
Criteo’s network reaches over 2.4B
shoppers globally. With 4,500 direct
publisher integrations and multiple
retailer integrations, Criteo is able
to leverage some 1st party retailer
data to target off site via their
programmatic network.
J Display, Video, App, CTV/
OTT, Audio, DOOH, Sponsored
Products, PMP, Product
Carousels, Rich Media
Growing quickly and available
at 30,000 stores throughout the
US, Instacart is a leading Desktop,
Mobile, In-app grocery delivery and
pickup platform.
J Sponsored Featured Products,
Delivery Promotions, Coupons
and Hero Banners
GOING BEYOND RETAILERS
Savvy marketers
and agencies
know that retail
media can
have a place
throughout
the customer
journey
Beyond these individual retail
media properties exists a variety
of multi-retailer networks.
These are media networks that
cover more than one retailer
media property and aggregate
data across millions of
consumers. One such example
is Criteo, which holds 4,500
direct publisher integrations
with retailers and can leverage
some 1st party retailer data to
target on and off those websites.
News America is another leader
in this space, with consumer
touchpoints that extend beyond
online media to their classic
in-store, print and sampling
touchpoints.
HOW SHOULD I THINK
ABOUT RETAIL MEDIA AS
PART OF MY MARKETING
PLAN?
Retail media is typically
well-suited for lower-funnel
marketing objectives: to drive
purchase intent, product trial
and increased sales velocity.
Reaching the customer close
to the point of sale is the right
approach when a brand wants
to drive trial and measure
results quickly.
That said, savvy marketers and
agencies know that retail media
can have a place throughout
the customer journey and
that it does much more than
just inspire an immediate
purchase. Retail media is a
truly full funnel channel when
used strategically against your
objectives:
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Awareness: Making potential
customers aware of a brand
or product can happen in the
“browsing” phase of the retail
media experience. The home
page is one such example you’ll notice brands taking up
significant real estate on the
home pages of Amazon, Target,
Walmart etc., announcing new
product offerings like the latest
Xbox console.
Familiarity & Consideration:
Placing your product
contextually within relevant
departments and broader
categories can help build
the association between the
brand/product and its value
proposition to consumers. As
consumers decide to learn
more about your product,
setting up robust product
pages and mini-brand
destinations within the retailer
site can help bring shoppers
down the purchase funnel,
allowing them to compare
and choose between different
offerings. A great example of
this is the Amazon Store which
is a free tool for brands to set
up what is essentially a brand
microsite within Amazon and
supplies backend data to the
marketer.
Purchase: The Golden Goose,
purchasing is where the really
exciting tactical elements of
retailer media come into play.
Driving purchase through
retailer media can happen
by purchasing sponsored
links when consumers are
searching for your brand
terms, your competitors, or
specific product formulations
or item descriptions. Digital
retail media also offers a
wealth of behavioral and
retargeting tactics allowing
you to reach customers who
previously browsed, search
or even bought your brand
or a competitor. The data
that powers these targeting
segments is often exclusive
to the retailer, and is unlike
3rd party data which relies on
cookies which are currently
being phased out of web
browsers like Google Chrome.
(Google still uses its own
data to target consumers).
Critically, most digital retail
media partners can measure
purchases influenced by this
media, providing purchasebased accountability.
Retention & Loyalty: Purchase-
based retargeting of prior
buyers enables personalization
of ads to offer value and
complementary products/
services. This encourages crosssell and brand loyalty. Using
first party purchase data can
target your brand buyers and
incentivize users to enter their
email addresses in the ad itself
or drive to a landing page to
collect first party data into a
CRM to further build upon
customer retention programs
and offers.
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WHAT’S THE BEST WAY TO
GET STARTED?
At Exverus Media, we find
that the critical first step to
forming a retail media strategy
is understanding your current
buyers and your target market:
What products in your
brand and category
do they buy most?
Where do they
currently buy them
(i.e. grocery, big box,
D2C)?
When?
How often?
What motivates them
to buy?
What do they want to
see from the brand
(i.e. what type of
offers/content are
attractive to them
and perceived as
more valuable)
Once we understand where and
how our audience is buying,
we want to identify areas of
opportunity for growth. Define
goals that ladder up to your
organization’s business goals,
whether it’s entering a new
market, increasing household
penetration or driving increased
purchase frequency. As shown
above, these different goals can
be achieved through different
tactics within the retail media set.
In one Exverus client example,
a non-perishable consumer
packaged beverage product
was considering a robust list
of 12+ brands as part of its
competitive set. Exverus started
a Sponsored Products campaign
on Amazon against the full list
of competitors.
Through the course of the
campaign, Exverus identified the
top two competitive brands within
that list that yielded the highest
conversion rates and highest
return on ad spend. Exverus was
able to increase spend against
just those top 2 competitors and
increase ROAS by 4x.
It’s important to remember the
goals of your business overall
and look at retail media as
part of a holistic strategy to
drive consumers to your brand.
Consider how other touchpoints
like television, radio, outdoor
and digital might impact your
brand awareness and either
increase or decrease the need
for retail-specific media.
Consider regional strategies
too: if your product is flying off
shelves in one particular region
of the U.S., or is difficult to ship
cross-county, a national Amazon
effort might not be the most
efficient way to scale. 
Moving
Forward
Retail media
is a powerful
component
in today’s digital
media toolkit.
Exverus clients are actively
testing and scaling to
drive incremental sales
and grow their brand and
products. Consumers are
reevaluating their purchase
patterns and are open to
recommendations from new
brands. Gone are the days of
products that “live or die” on
the basis of placement on the
physical shelf, and embrace
the new “digital shelf” that is
effectively democratizing the
playing field for challenger
brands to introduce new
products to the world. It’s
an exciting opportunity and
challenge, and in our view,
the rewards are significant.
If you’d like to get started with retail media, optimizing
your current retail media investment and planning full
funnel media for your brand, contact us today.
ABOUT US
Exverus is a paid media
agency that builds
culturally relevant,
growth-stage brands.
By utilizing custom,
innovative strategies, our
clients have maintained
their growth and
brand relevance and
will continue to do so
regardless of market
conditions through 2021.
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TALIA ARNOLD
Head of Strategy
and Planning
BILL DURRANT
Managing
Director
Talia@exverus.com
+1 (424) 465-3064
Bill@exverus.com
+1 (323) 332-1821