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Enriching the Retail Media Landscape with Auto-Replenishment

There’s a reason that retail media is one of the most discussed topics these days amongst retailers and brands – and that is due to the fact that retailer-owned media (both digital and in-store) is serving an important role in reaching shoppers. The Path to Purchase Institute recently researched the shopper’s viewpoint on retail media and uncovered that shoppers typically find the information served as helpful and relevant to their purchase decisions, especially when they are looking for promotions or deals.

Although the concept of monetizing store space is nothing new, several salient reasons emerge as to why this topic has been extra prominent lately:

The Whys

According to Bain, “Propelled by the acceleration of online shopping in the last two years, retailers are reimagining their existing digital platforms as prime advertising real estate for suppliers like brands and marketplace partners.”

Retailers are in a prime position by owning physical and digital space that is front and center to so many shoppers, and monetizing these spaces has become helpful, considering the already slim margin and inflationary pressures they face. It is reported that the average margin on retail ad sales is typically 70% to 90%. As of August this year, 25% of retailers are already generating more than $100 million in revenue from the media networks, and eMarketer expects retail media advertising expenditures to be close to $52 billion by next year.

Brands are quickly embracing the opportunity to be present and control messaging to the actively shopping buyer audience. Through retail media, brands are also able to reach audiences that may otherwise be difficult to reach.

Additionally, through retail media advertising arrangements, brands gain access to retailers’ first-party shopper data to better understand vital information about the shopper journey and decision-making process.

Following the Customer Journey

Retail Media done right parallels the way in which people shop. Whether in-store or online, retail-owned real estate reaches shoppers during prime purchase decision making phases. Retailers incorporating Replenium’s Auto-Replenishment Platform literally extend their available real estate and therefore increase their earning potential.

As shoppers explore options to add everything from fresh produce and cleaning supplies to skin care products, brands can reach them through retailers’ specific auto-replenishment pages which encourage setting up repeat purchases of those brands.

In-store, auto-replenishment gives retailers the opportunity to add promotional space and messaging, like shelf signs and thematic messaging that leverages products throughout the entire store. A shopper in the snack aisle, for example, could be encouraged to add all relevant school lunch items to their auto-replenishment basket.

Extending retail media available real estate through auto-replenishment is not just an incremental earning source, it also presents the opportunity to better serve customers. Because auto-replenishment shopping translates to convenience and savings for shoppers, the more they are made aware of the opportunity to save money and secure their favorite products, the more they feel better served by the retailer.

Staying Informed

Although the retail media industry is quickly evolving and aggregating, we recommend keeping up to date by following core retailers with existing retail media networks (Walmart Connect, Albertsons Media Collective), media inventory aggregator companies such as Criteo or Quotient, demand side platform (DSP) and data suppliers like Adobe, Amazon and The Trade Desk, and third-party sellers like Fetch and Pinterest.

It’s easy to learn more about the customer as well as retail media benefits of Replenium’s Auto-Replenishment Platform by reaching out to us for a demo.


Recommended reading and watching:

Insider Intelligence: Retail Media Networks

Path to Purchase Institute: Shopper Engagement with Retail Media


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