Retail Media explained: the different models and campaign types

Retail never stands still. While the rise of e-commerce has brought many challenges and opportunities in recent years, Retail Media now offers enormous new opportunities for retailers and brands. Are you fully up to speed, or are you still in the dark? No problem, in this blog, we’ll briefly summarise the key concepts for you. 

What is Retail Media?

Retail Media involves advertising brands and products via a retailer’s online and offline channels. Think of ads on the website and in the app, but also on digital screens, in-store radio, print media and so much more. The big advantage? It allows brands to reach their consumers exactly where it counts, very close to the purchase decision. Talk about perfect timing ;-)!

What makes this so interesting for advertisers? Retailers have a wealth of valuable customer information at their disposal. From preferences and purchasing behaviour to walking routes in the store. Especially now that third-party cookies are disappearing, brands are looking for new, privacy-friendly ways to reach their consumers and measure the effectiveness of their campaigns.

What types of Retail Media models are there?

There are two models for filling advertising space on digital screens in physical shops: Direct Selling and Programmatic Buying. Whilst the first model focuses on direct contact between the retailer and the advertiser, the second model is automated via an advertising platform.

1. Direct Selling

In Direct Selling, retailers (or sales partners) approach advertisers directly with specific advertising opportunities. This usually takes the form of pre-arranged campaigns that run at specific locations for a set period. Through this direct contact, the retailer retains control over which advertisers appear on the screens and what messages are displayed.

2. Programmatic Buying

Programmatic buying, on the other hand, revolves around automation, with platforms facilitating the buying and selling of advertising space. On the buying side, advertisers (or media agencies) use Demand-Side Platforms (DSPs) to purchase advertising space based on targeting criteria. On the other hand, retailers make their screens available via Supply-Side Platforms (SSPs), which optimise the selling price and handle transactions efficiently. This automated process therefore saves a lot of time and resources ;-).

What types of Retail Media campaigns do we distinguish?

In addition to the various Retail Media models, we also distinguish between different campaign types: Endemic and Non-Endemic campaigns. These terms describe the relationship between the advertised product or brand and the retailer where the ad appears.

The choice between Endemic and Non-Endemic campaigns (or a combination) depends entirely on the retailer’s specific objectives, the type of shop, the customer base and the available data.

So what exactly is the difference? We’ve outlined the two variants for you:

1. Endemic campaigns

Endemic campaigns are ads for brands and products that are relevant to the shop’s product range. In short: they are a natural fit with the retail environment and customers’ needs.

Think, for example, of a supermarket highlighting a particular brand of coffee from its range, an electronics shop advertising a specific brand of batteries available in-store, or a clothing shop running a campaign for an accessories brand sold in the shop. 

2. Non-Endemic campaigns

Non-Endemic campaigns are not about what you sell, but about who is in the shop. Rather than the product range, the focus is on customers’ broader interests and lifestyles.

Think of a supermarket advertising a car brand, an electronics shop promoting a holiday destination, or a clothes shop running a campaign for a financial service.

Want to find out more about Retail Media?

That’s a brief summary of the basics of Retail Media. Would you like to dive deeper into the world of Retail Media? Download our whitepaper to discover the role of the physical shop in this story and get practical tips on how to set up a successful Instore Retail Media strategy.