Retail Media

Retail Media, a connector in the Brand-Retailer relationship

Since 2018, Amazon has taken the upper hand of product searches by overtaking Google, which currently represents 46% of the requests against 54% for Jeff Bezos’ company. In addition, in France, over 43 million internet users visited e-commerce websites in December 2018. Making it the first time in history that figure equals the number of persons who visited a media website. 

A shift in the situation which, on one hand, interrogates the brands’ digital spendings. Indeed, they mainly focuses on Google Search and media websites. On the other hand, it is transforming the retailers’ role, so that it is now perceived as a media in its own right.

This is why we now talk about Retail Media : the monetisation of retailer’s e-commerce and point of sale spaces and transactional data.

How did Retailers get ready for Retail Media ?

Retailers have promoted their supplier’s products from their e-commerces and in their stores since the dawn of time through Trade Marketing agreements. So what will be the impact of Retail Media ?

The products we are used to see at retailers are still lately largely managed by sales teams and very little by digital marketing teams. For instance, if a brand salesperson bought a banner on the retailer’s website but would be unable to know the results connected with this banner display nor able to target the diffusion. 

To answer the diverse challenges hat have arisen from Retail Media, some retailers have launched their own advertising sales agency. As 3w.RelevanC at Casino Groupe, Retailink at Fnac Darty or RedBlue at MediaMarktSaturn Retail Group. There are also organisational concerns as it requires a smooth intergration of this new subject into the sales, media and marketing teams. But above all to prevent the creation of another department. There are also technological concerns because to monetise transactional data to offer to brands, it is essential to be able to handle billions of data. 

Therefore, retailers can now propose to brands to invest their media budget with in them to implement campaigns to an accurately targeted audience thanks to the transactional data they possess. This will additionally allow brands to obtain visibility on the performances of their campaigns.

Trade Marketing and Retail Media, what is the difference ?

90 billion euros, this was the amount of Trade Marketing in 2018 in France according to the FEVAD. Within Trade Marketing agreements, retailers agree more and more with brands. For example, to provide them visibility on their websites via enriched product pages. So are Trade Marketing and Retail Media the same thing ?

Not at all ! Trade Marketing is a profession which aims to help the brand to establish a close relationship with their retailers in order to highlight the brand’s products to provoke sales.

Thus, Retail Media is added to the propositions that retailers can offer to the brand’s Trade Marketing representative. 

What changes for the Brands Media Investment Strategy ?

Just like retailers, brands carried out several sales, legal, technology and organisational changes to be able to receive Retail Media projects. But what factors encouraged brands to realise these changes ?

Retailers : Media and Product Search Champion

As you read in the introduction, Amazon now generates more product searches than Google. This news came like a bomb to brands who consequently dropped Google Shopping to invest more budget in charged search on Amazon as explains Nathalie Bajeux, Head of Ecselis France. Amazon is no longer a simple retailer in brands’ mind, but a major audience crossroads where the desire to buy is created.

Furthermore, Amazon being obviously ready for Retail Media, the American giant already attracts media budgets of many brands. One of them, leader of the consumer electronics sector invests over 50% of its media budget with Amazon even though this one barely makes 30% of its online turnover on Amazon. Why this choice ? An objective of visibility and branding that retailers offer through their audience ; and as justifies Frédéric Marty, GM of Performics France (Performance Marketing Agency of Publicis Media) : “Campaigns perform better […] with retailers as we are closer to the sale.”

An exclusive asset for retailers : Transactional Data

Retailers possess a key asset that even GAFA do not have : the collection of end-Buyers’ data. Retailers track any visitor behaviour on their websites. They collect socio-demographic data, purchase data and many other data. This whole data is a goldmine for brands since it enables them to target an extremely accurate buyer persona. But also to use the performance data to enhance cross-selling and even up-selling afterwards. However, GAFA still capture 80% of digital investments !

In the near future, the technological advances will make it possible to bind online and offline transactional data. As a result, retailers will be able to measure with precision the impact of digital on store sales. Consequently, the retailers who will capitalise on transactional data will be those which will most certainly propose the best Retail Media to offer to brands.

The Impact of Digital on Store sales

Frédéric Marty, GM of Performics France considers that among Trade Marketing investments in France, the Digital represents only 100 million euros. In light of the impact of digital on store sales and at the time of the advent of Retail Media, this figure should increase very shortly.

Indeed, a 3w.RelevanC study (realised on 70 campaigns) reveals that an individual exposed to a digital campaign generates 10% of incremental turnover in store compared to a non-exposed individual. Yet, brands’ digital communication investments only represents 5% of communication investments (in value).

Some cases

In 2018, only 6,1% of FMCG purchases were made via Internet. This is why, most of FMCG brands are often careless about their digital investments. The end-Buyers need to use of their senses (vision, touch, smell) to determine the product they want to buy. But end-Buyers are also very receptive to digital communications when those are well targeted. 

Another example in a sector where digital has more power, the Small Household Appliance sector which makes over 20% of its sales online. And yet, 95% of the in-store buyers went online (web-to-store) before purchasing the product ! To match with these figures, Frédéric Mayor, Head of Digital at SEB Group declares investing 95% of its media budget on the digital side.

No matter the share of online sales vs. offline sales a brand makes, it is now essential for brands to communicate on every channel and particularly on the digital one. By investing budget in Retail Media, brands speak to the right audience, at the right time and with the right message. The 450 brands using Click2Buy’s solutions in any of their digital interactions to drive highly qualified traffic towards retailers understood this and grow with us every day.

You want to discuss this subject further ? Let’s grow together ! 



Definition Marketing
1 Journal du net
2 Journal du net
3 Journal du net
4 Journal du net
5 Journal du net
HubInstitute 2


Téléchargez notre nouvelle édition 2019 du livre blanc
pour tout savoir sur le where to buy

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

Clic2Buy will use the information you provide on this form to be in touch with you and to provide updates and marketing.