Sales Strategy

Winning Retail Media Strategies That Prioritize Customers February 25, 2025 (0 comments)

Coronado, CA--By 2028, U.S. retail media ad spending will account for nearly a quarter of total media spending, according to Customer First. Brands use first-party data to target consumers, while retailers profit from ad placements. However, a revenue-first approach often frustrates customers, leading to lost loyalty. Effective retail media strategies must prioritize the customer experience.

[Image via istockphoto.com]

Leveraging First-Party Data for Relevance

Loyalty programs provide critical first-party data. Customer First notes that 83% of global consumers say these programs influence repeat purchases. Insights from purchase history and browsing behavior allow brands to deliver relevant ads.

For instance, a Costco shopper who regularly buys a coffee brand but hasn’t purchased it recently might receive a targeted discount. This approach ensures ads are helpful, not intrusive. QR codes further enhance tracking, linking product interactions to purchases.

Using behavioral data also improves ROI—Forrester Consulting, cited by Customer First, reports a 72% increase when integrated into marketing strategies.

Retail Media That Converts: Content Over Placement

Effective retail media isn’t just about ad placement but product content. Customer First highlights a 1WorldSync study showing that 70% of online shoppers abandon purchases due to poor product information.

To improve conversions, brands should focus on:

• High-quality images from multiple angles.
• Clear, detailed descriptions with SEO-friendly keywords.
• Videos, 360-degree views, or AR content to enhance product understanding.
• Customer reviews and ratings to build trust.
• Strong ads attract attention, but quality content drives sales.

Seamless Omnichannel Integration

A frictionless shopping experience boosts retail media effectiveness. Customer First cites Sephora’s Beauty Insider program as a prime example—integrating in-store and digital experiences to personalize ads and recommendations.

Product details must be accurate and consistent across all platforms for brands to succeed. A tech brand, for example, risks losing sales if product descriptions and pricing differ across channels.

Learn more in this article by Customer First.