They grew by nearly 22% year on year, already account for almost one fifth of global media spending and, according to McKinsey forecasts, will overtake television in 2026. What are they?
Retail media networks have deservedly become one of the hottest topics in advertising and marketing. Now, thanks in part to Żabka Ads, they are growing rapidly in Poland too. By improving advertisers’ sales results, they make it possible to reach customers on highly favourable terms, and their best days are still ahead.
Why do consumers like RMNs?
The industry would not have embraced RMNs without consumers’ positive response. As many as 80% believe advertising at the point of sale improves their shopping experience. Here are the main reasons:
– They help rather than irritate.
RMNs make stores easier to navigate and help consumers find their favourite products exactly when they need them. They are unobtrusive, do not interrupt a favourite TV moment or pop up uninvited on social media. They appear in the right place at the right time.
Someone visiting Żabka for a quick snack who sees an ad for a new drink is more likely to try it, avoiding the moment of realising after leaving that they forgot something to drink.
– They improve relevance.
By using first-party data, RMNs can reach consumers precisely with the messages they expect. That means fewer irrelevant ads, which consumers also find irritating.
Żabka Ads carefully analyses the purchase decisions of 14 million customers a month. Almost 450 TB of data helps identify what sells well, when it sells and what does not.
– Advice and extra benefits.
When a customer cannot decide which of the many types of crisps to choose for a film night, an ad at the point of purchase can make the choice easier, especially if it offers an extra promotion or discount.
This is why RMNs are often seen as part of the store’s offering and a source of advice rather than intrusive persuasion. A purchase they inspire feels like making the most of an opportunity. And who doesn’t like a good offer?
– Innovation we all enjoy.
New things always attract attention. A new flavour shown on an innovative advertising display makes a much stronger impression than one on a faded billboard, especially when the product is within arm’s reach.
A short history and a big future
Although RMNs originated in e-commerce and interest has grown since the pandemic, the biggest surge has been visible since 2022.
One in two advertising and marketing professionals considers them an important topic with strong growth potential. It is no surprise that retail media networks have featured at Cannes Lions for two years, while Adweek has published almost 129 articles about them over the past three years.
Media once seen as a niche curiosity are becoming increasingly important elements of media plans, with their share of promotional budgets steadily growing.
While Walmart and Kroger are global pioneers of offline RMNs, Żabka Ads is developing rapidly in Poland. Screens in Żabka stores, at checkouts, by shelves, near entrances and outside, capture attention and direct it to products usually within arm’s reach. With three million people visiting Żabka stores each day, RMNs and Żabka Ads may soon become an increasingly important part of more brands’ marketing strategies.
The next article explains how RMNs help increase brand awareness and support the entire marketing funnel.