Retail media is changing the game and will quickly become a core element of many retailers’ business strategies. So it’s important for retailers to understand the scope this opportunity creates for their own business (and how much revenue could be coming their way).
But it’s not an easy thing to measure, which is why we’ve created our media revenue calculator, which can help retailers understand the extent of their media opportunity.
Based on our years of experience working with retailers and deep retail market research, we believe that retailers can generate media revenue equivalent to 1% of their total retail sales – which can translate into a 10% increase in profit.
Our calculator can help retailers understand the level of revenue their business can achieve, based on a number of factors. Below are the factors we deem as most influential on the impact of the size of the prize:
- Percentage of branded sales: retailers which have a higher percentage of branded products have a larger pool of potential advertisers to sell to. A discounter with a large % of own-label brands will not be able to generate as much media revenue as a premium brand-heavy retailer.
- Multichannel presence: a lot of the value in media comes from the capacity to reach customers seamlessly across different channels. The more diversified the assets (e.g. online and offline), the greater the revenue potential.
- Media coverage: the monetisation potential depends on how much coverage a retailer is ready to give to advertising. Whether the retailer opts for a minimal number of ads or a more media-rich experience will affect the revenue potential. Put simply, the question here is how important is advertising in the global strategy?
- Brand creative freedom: brands will pay more if they are not limited by strict creative guidelines.
- Data maturity: being able to personalise content to customers wherever they are is hugely valuable to advertisers. And this relies on having the right data capabilities in place. A retailer with a fully integrated data capture will be able to target customers across channels and devices and measure the true impact of campaigns, which will add value to their media offering.
The algorithm has been finely tuned using our 30 years’ experience in retail, however the revenue figure displayed is not guaranteed as each retailer is different and there are various elements that can impact the potential level of monetisation.
To receive a more accurate estimate, contact us for a fuller consultation and monetisation healthcheck.