Retail media has proven to be particularly effective during seasonal periods. Retailers live and die by seasons, which create natural peaks and valleys in consumer demand. From New Year’s resolutions and Valentine’s Day to Easter, summer sales, and a myriad of retailer-specific holidays like Prime Day and Back-to-School, these events offer an excellent tempo for organizing retail media campaigns.
With fewer days between Thanksgiving and Christmas this year, understanding and leveraging these opportunities can significantly enhance the effectiveness of your retail media strategy.
Understanding Seasonal Baselines
One of the key insights for maximizing retail media success is recognizing the importance of seasonal baselines. These periods often come up quickly and create sharp spikes in consumer activity. Therefore, having a clear understanding of historical data and trends is crucial. This data helps in setting realistic expectations and in measuring the incremental impact of your campaigns.
During these peaks, methods of test and control may not be feasible. Retailers and advertisers are often unwilling to engage in controlled experiments during their busiest times. Instead, you should focus on gathering as much data as possible from previous years, and use your MMM model, to establish a robust baseline against which you can measure your results.
Leaning into the Spike
Retail media strategies need to lean into these seasonal spikes at least two to three weeks ahead of the event. For online sales, this means starting your campaigns earlier, as online consumer behavior tends to ramp up gradually before peaking. In contrast, in-store sales often exhibit a much sharper increase during the actual event period.
By planning your campaigns to align with these behaviors, you can ensure that your messages are reaching consumers at the right time. This early engagement can help build awareness and anticipation, leading to higher conversions when the peak period hits.
Flexible Budgeting and Keyword Strategy
As seasonal events approach, the competition within retail media networks becomes fierce. Events like Black Friday, Cyber Monday, and other major sales can lead to inflated media costs. To navigate this, a flexible approach to budgeting is essential. Shift your focus to higher-margin, longer-tail keywords that may be underpriced compared to the highly competitive terms. This strategy allows you to maintain visibility without overspending on the most contested keywords.
Additionally, consider diversifying your spend across less saturated retail media networks. For example, delivery apps and hospitality brands may offer lower competition and better value during these peak periods. This approach can help protect your digital shelf and ensure your products remain visible even when competition is at its highest.
Leveraging Multi-Brand Platforms and Influencers
During peak seasons, the saturation of ads can lead to banner blindness, where consumers become desensitized to the overwhelming number of ads. To combat this, consider leveraging multi-brand platforms or ads. These collaborative efforts, reminiscent of old retail tactics like tri-brewer ads in the beer business, allow multiple brands to share the spotlight in a single advertisement. This not only reduces costs but also increases the ad’s appeal by offering consumers more choices in one place.
Influencer partnerships are another effective strategy during these periods. Influencers can cut through the noise and deliver your message in a more personal and engaging manner. Their followers trust their recommendations, which can lead to higher engagement and conversions during these critical times.
Conclusion
Seasonal strategies for retail media require a combination of historical data analysis, early engagement, flexible budgeting, and innovative advertising approaches. By understanding the nuances of seasonal consumer behavior and leveraging the right mix of tactics, you can maximize the impact of your retail media campaigns. Remember, the goal is to anticipate the spikes, prepare accordingly, and execute with precision to ensure your brand stands out during these high-stakes periods.
This article was based on a recent webinar, “Navigate Retail Media for Maximum ROI: How Marketers Can Ensure Profitability and Incrementality with RMNs,” hosted by i4i’s Mark Garratt with featured guest, Nikhil Lai of Forrester.
For more insights on navigating RMNs, check out our guide here.
