Taking Advantage of Retail Media Advertising in the Adtech Industry

Taking Advantage of Retail Media Advertising in the Adtech Industry

In retail media advertising, brands advertise on retail sites or apps to reach consumers. Customers are supposed to see the ads when they’re already in a buying mindset. This type of advertising is still in its infancy, but it has already begun to gain traction. The ad tech industry benefits from retail media advertising, so let’s take a closer look at it.

Media Advertising In The Retail Sector: What Is It?​


Retail media advertising aims to put customers in a purchasing mindset to see the ads at the right time. Let’s take a closer look at how retail media advertising benefits the ad tech industry. Although it is still in its infancy, it has already demonstrated some success.

The Power of Retail Media Advertising

Retail media advertising is most effective when it reaches consumers at precisely the right time: when they’re already thinking about buying. As a Consumer, you might see an ad for a product on social media, which might lead you to a Google search for more information. From there, you might visit a retailer’s website to learn more. And finally, you make the purchase.


It is possible to be influenced by advertising at each step along the way in this scenario. At first, you gather information. Next, you narrow your choices and start considering which product to purchase. Finally, you decide to purchase. At each stage, you are in a different frame of mind. In response to this consumer behavior, retailers have used in-store advertising and product placement as tools since the late 1970s. With retail media advertising, brands can advertise directly on retailer sites and apps, allowing them to reach buyers already in the buying process.


As a result of how Facebook, Twitter, and Instagram are designed, a great deal of engagement is happening with advertisements. Because of how these platforms are designed, the newsfeed on Facebook, for example, is constantly updated with new content. Because users constantly see new ads, they are likelier to click on them. On Twitter and Instagram, users can easily see new content and ads. The ability to target advertisements based on interests and demographics is also resulting in higher engagement with advertisements on these platforms. Businesses, for example, can advertise on Facebook to people who are more likely to be interested in them. However, businesses do not have the same targeting options as Facebook regarding Twitter and Instagram.


In addition, these platforms are causing more engagement with advertisements because of how people use them. It is common for people to use social media when they are bored or procrastinate, so if they’re already on the platform, they’re more likely to see and click on ads. Due to how they are designed, how they target users, and how people use them, Facebook, Twitter, and Instagram are causing the most engagement with advertisements.

Is Retail Media Different From Other Advertising Forms?

As a result of their ability to align their messages with retailers who share their values, retail media offers brands a distinct advantage over other digital advertising forms. Moreover, retail media also offers better targeting capabilities than other types of digital advertising because retailers have first-party data on their shoppers’ demographics, interests, and purchase history. Advertisers can use this data to target ads precisely to those shoppers who are most likely to be interested in what they have to offer-thereby increasing campaign ROI.

Companies can use first-party data to create targeted marketing campaigns and ads that are more likely to convert leads into customers. A company collects data about its customers can be used to create targeted marketing campaigns. In addition, customers can benefit from the personalization of offers and content using first-party data. Using first-party data, advertisers can better understand their target audience and create more relevant and effective advertising campaigns. Furthermore, advertisers can track the performance of their advertising campaigns and optimize them for better results using first-party data.

In the world of retail, the saying is true: “Content is King.” Retailers are increasingly using content to engage customers and promote their products. But as retailers become publishers, they need better ad technology to monetize their content and drive ROI. Here’s why:

1. Publishers struggle with ad blockers


As a result of ad blockers blocking ads from being displayed on websites, publishers can lose revenue and reduce website traffic. Ad blockers can also interfere with how publishers track user behavior on their sites, making it harder for them to identify areas for improvement and understand what content is most popular. Publishers must find ways to adapt to ad blockers to remain viable in the face of ad blockers.

Publishing has attempted to adapt by offering “ad-free” content through subscription models or relying on other revenue sources, like donations. This approach, however, isn’t without its challenges, and it’s unclear whether it will be sustainable in the long run. Another possible solution is to work with ad blockers to create “white lists” of sites that are allowed to display ads, but this also has drawbacks. Each publisher tries to find the right balance for their situation so that the best solution may be a combination of different approaches.

Despite not implementing ad blockers, J.C. Penney was fined by the FTC in 2012 for violating the FTC’s Ad Rule. Businesses must have a reasonable basis for claiming that their products will perform as advertised under the Ad Rule. According to ads, J.C. Penney’s diamond engagement rings were “flawless” and “internally flawless.” Still, independent laboratories found that many diamonds contained inclusions visible to the naked eye.

The failure of J.C. Penney to implement ad blockers led to the false ads running unchecked, ultimately resulting in a hefty fine. This serves as a reminder that ad blockers can help businesses avoid costly penalties by ensuring only accurate and truthful ads are displayed.

2. Content publishers need to monetize their content in new ways


As ad blockers increase, publishers must find new ways to monetize their content. Subscriptions, native advertising, and sponsored content are all viable options, but they require different technology. Although ads are still the most common form of monetization for publishers, diversifying your income streams will allow you to better weather any challenges in the future, such as an increase in ad blockers.

Implementing subscriptions, native advertising, and sponsored content requires technology. A paywall can be integrated directly into the website or app for subscriptions. Technology requirements for native advertising vary from platform to platform but could include ad units matching the look and feel of the app or site. Technology may also be necessary to track impressions and clicks and ensure that sponsored content is being served to the right audience.

3. Online advertisers are concerned about viewability


A recent study found only 50% of online display ads are viewable by users when they are viewed for at least one second. According to Active View, only 50% of display ads are viewed for at least one second. The majority of ads advertisers pay for failure to reach potential customers.

Several factors influence ad viewability, including ad placement and user attention span. However, ad loading speed is crucial. Users will soon move on if an ad takes too long to load.

Advertisers can improve ad loading times and make sure that as many people see their ads as possible by using a service specializing in ad viewability. Advertisers must be aware of this issue to ensure that as many people see their ads as possible.

Advertisers can increase the number of people who see their ads by improving ad loading times and using a service specializing in ad viewability.

4. Ad fraud is a massive problem for the online advertising industry


Fake ad clicks generated by automated bots cost advertisers billions of dollars annually and undermine industry trust.

A massive problem is facing the online advertising industry in the form of ad fraud. Advertising fraud costs advertisers billions of dollars each year. Click fraud, viewable impression fraud, and conversion fraud are the most common forms. In fact, 90% of all PPC ad campaigns on Google and Bing are affected by click fraud.

The act of clicking on an advertisement without intending to interact with it is known as click fraud. This can be done manually or through automated means such as bots. Viewable impression fraud occurs when an ad is served to an impression that a human cannot view. Conversion fraud occurs when a click on an advertisement leads to a sale or a lead that is not genuine.

5. Privacy concerns are driving consumers to block ads


According to a study by the IAB, nearly 60% of consumers have installed ad blockers due to privacy concerns. This poses a significant problem for publishers who rely on advertising to generate revenue.

In light of increasing concerns about online privacy, more and more consumers are blocking ads. Ad blockers are becoming increasingly popular, with some estimates suggesting that almost 30% of internet users now use them. It’s bad news for businesses whose revenue comes from advertising, but it could be good news for consumers. Ad blockers prevent advertisements from appearing on web pages.

There are several reasons why people use ad blockers. Some people find ads irritating or intrusive. Others worry about their privacy since ads can track people’s online activities. Whatever the reason, ad blocking is likely to continue. It could impact businesses that rely heavily on advertising revenue significantly. More people may take steps to protect their online privacy as a result.

6. The ad tech supply chain is convoluted


The ad tech supply chain comprises dozens of players, from publishers and platforms to data providers and demand-side platforms (DSPs). This complexity makes it hard for publishers to understand where their ads are being seen and how much they’re worth.

One way to help increase transparency and control over your data is to use a tool like the Ghostery Browser Extension. Ghostery allows you to see the trackers on each website you visit, what information they collect, and whether or not they share it with third parties. You can also block any tracker you don’t want to collect your data. Using a tool like Ghostery can help you regain control of your data and protect your privacy online.

Kroger now offers connected TV advertisements (CTV ads) as part of its retail media offering. The grocery chain has tested the ads with select brands over the past few months and is now rolling it out to all advertisers.

Aside from Kroger, Target and Walmart have launched their CTV platforms recently. Retailers are looking for new ways to reach consumers as they cut the cord and abandon traditional pay-TV services. CTV offers a unique way to reach shoppers when relaxing at home and in a shopping mood.

All major streaming platforms, including Roku, Amazon Fire TV, and Apple TV, offer Kroger’s CTV inventory. Advertisers can buy ads on Kroger’s CTV platform using major ad-buying platforms, including The Trade Desk, Adobe Advertising Cloud, and Google Display & Video 360.

In the months and years to come, we can expect more retailers to follow Kroger into the CTV space with the growing popularity of streaming services.

Final Thoughts


Retail media promises a lot for brands and tech companies operating within the space. For example, done correctly, it has the potential to improve conversions while providing valuable data that can be used not just for targeting ads but also for optimizing eCommerce sites. Crucially, it allows businesses to tap into new revenue streams without cannibalizing their existing ones. However, as with any new technology or marketing channel, there are challenges that need to be overcome before it can truly live up to its potential. 

These challenges include ensuring that ads are placed in contextually relevant environments, that measurement tools are accurate enough to prove ROI beyond doubt, and that data privacy regulations do not stifle innovation. Given time, retail media could become a full-fledged powerhouse within digital marketing that provides significant benefits for advertisers and publishers alike.