Europe's retail media surge: How brands can boost market presence through a cross-retailer advertising approach
Retail Media's Impact on European Brand Strategy
In the ever-evolving landscape of digital marketing, retail media networks (RMNs) are making a significant impact in Europe. This shift towards integrating advertising directly within retailers' digital ecosystems is driving brands to leverage first-party data for precise targeting at the point of purchase.
Data-Driven Targeting and Measurement
European brands are increasingly relying on RMNs to access retailer first-party data, enabling highly targeted advertising and more accurate campaign performance measurement. This facilitates more efficient budget allocation by maximizing ad effectiveness near or at the point of purchase [1][3].
Shift Towards Full-Funnel Marketing
Retail media is evolving beyond simple search and product ads into video, audio, and cross-channel partnerships (e.g., Walmart with Roku) that help brands build awareness and engagement alongside driving sales. This requires brands to adopt a multi-format media approach integrated with retail data [3].
Integration with E-commerce
Since retail media is embedded in e-commerce environments, brands must align their marketing and e-commerce strategies, optimizing product content, pricing, and availability to maximize campaign impact [1][5].
Competitive Differentiation
Retail media’s growth demands brands develop unique narratives and positioning to stand out amidst increasing ad density and digital competition, especially in sectors like fashion and luxury where distinctiveness is critical [4].
Challenges European Brands Face
- Lack of Standards and Fragmentation: A key challenge is the lack of integration and standardization across retail media platforms in Europe, leading to inconsistent metrics and difficulties in cross-network reporting and measurement. About 70% of buyers cite inconsistent reporting as a significant issue [3].
- Complexity of Measurement: Brands face complexity in measurement due to disparate retail media networks, limiting the ability to consolidate data and evaluate campaign ROI holistically [3].
- Data Privacy Regulations: European brands must navigate strict data privacy laws (e.g., GDPR), which can constrain the ways first-party data can be used for targeting, unlike in regions with more lenient regulations [3][5].
- Ad Saturation and Consumer Experience: With retail media networks proliferating, brands risk contributing to ad saturation, which may negatively affect the shopper experience if not managed carefully [3][5].
- Resource and Technical Expertise: Implementing sophisticated retail media campaigns requires brands to develop or acquire expertise in retail media technology, data analytics, and cross-channel campaign execution, which can be a barrier especially for smaller firms [1][3].
In summary, the rapid expansion of retail media in Europe compels brands to adapt their strategies towards data-driven, omnichannel retail-centered marketing, while facing challenges related to platform fragmentation, measurement, regulatory constraints, and the need for advanced capabilities. These dynamics demand significant strategic and operational adjustments to harness retail media's full potential in 2023 and beyond.
Platforms Leading the Way
Companies like Pacvue are helping brands navigate this landscape. Pacvue's platform tracks Bottom-of-funnel revenue growth in Pacvue Commerce via Amazon Marketing Cloud. It also offers a cross-retailer dashboard, Sonar, which allows brands to capture missed opportunities with cross-retailer keyword sharing [2].
Moreover, Pacvue provides seamless integrations with Criteo and Citrus Ads to supercharge retailer reach throughout the region. Smaller marketplaces like bol.com are also launching their own retail media projects in Europe [6].
The Importance of a Multi-Retailer Strategy
Brands should prioritize a multi-retailer advertising strategy in 2023 due to the expansion of retail media in Europe. Capturing market share is easier when technology is built across the entire commerce cycle, as demonstrated by Pacvue Commerce. Consumer spend is limited, making it essential for brands to capture market share wherever their consumers are [7].
Retail media provides closed-loop data that allows brands to get full-funnel analytics, enabling them to make informed decisions about their marketing strategies [8]. As the retail media landscape continues to evolve, brands that adapt quickly and effectively will be best positioned to thrive in this competitive environment.
[1] https://www.pacvue.com/blog/retail-media-networks-rmns-are-the-future-of-advertising/ [2] https://www.pacvue.com/solutions/sonar/ [3] https://www.emarketer.com/content/retail-media-networks-rmns-in-europe-will-reach-24-billion-in-2023 [4] https://www.pacvue.com/blog/retail-media-networks-rmns-are-the-future-of-advertising/ [5] https://www.emarketer.com/content/retail-media-networks-rmns-in-europe-will-reach-24-billion-in-2023 [6] https://www.bol.com/nl/nieuws/nieuws/nieuwsbericht/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws/nieuws
- As European brands take advantage of retail media networks for data-driven targeting, they must also contend with the complexity of law and regulations, such as GDPR, which governs the use of data in marketing.
- In the face of increased competition in various sectors, like fashion and luxury, brands must leverage technology and updates in retail media to develop unique narratives and stand out within the crowded digital space.
- To make the most of retail media's growth and potential, businesses must stay informed about advances in technology, like the multi-retailer dashboard offered by Pacvue, to optimize their advertising strategies across multiple platform and channel partnerships.
- In light of improving economy and finances, businesses are focusing on adopting a multi-format media approach integrated with retail data, expanding from simple search and product ads to video, audio, and cross-channel partnerships.
- To combat the challenge of ad saturation and maintain a positive consumer experience, brands need to invest in resource and technical expertise to develop sophisticated retail media campaigns with minimal impact on shoppers' online journeys.
