CMO Strategies: Retail Media Continues to Mature as RMNs like Gopuff and Ulta Build on Their Strengths
As the retail landscape transforms, the role of retail media networks (RMNs) is becoming increasingly pivotal. The first installment of Modern Retail+ Research’s 2025 CMO Strategies series sheds light on how multi-category RMNs like Amazon and Walmart stack up against category-specific networks such as Gopuff and Ulta. This comparison not only highlights the maturation of retail media but also provides insight into how brands are strategically investing in retail media marketing.
Retail media networks have evolved from mere advertising platforms into essential components of retail strategy. Brands are increasingly recognizing the potential of RMNs to engage consumers at critical touchpoints throughout their shopping journey. With their ability to reach targeted audiences, RMNs are becoming more attractive to marketers looking to maximize their return on investment (ROI).
Multi-category RMNs like Amazon and Walmart have long dominated the retail media space. Amazon, for instance, has leveraged its vast customer data to provide advertisers with targeted advertising opportunities. With billions of searches conducted on its platform each year, the potential for brands to connect with customers is immense. Walmart, on the other hand, has utilized its extensive physical footprint and e-commerce capabilities to create a holistic advertising experience that bridges online and offline channels.
However, the rise of category-specific RMNs like Gopuff and Ulta is reshaping the landscape. Gopuff, known for its rapid delivery of convenience goods, has carved out a niche in the grocery and everyday essentials market. The company’s unique selling proposition lies in its ability to deliver products to consumers in a matter of minutes. This immediacy not only caters to consumer needs but also provides brands with an opportunity to engage customers in real-time through targeted advertising.
Ulta, a beauty retailer, has also made significant strides in retail media. With a focus on the beauty and personal care sector, Ulta has harnessed its extensive customer data to create personalized advertising experiences. Brands can leverage Ulta’s platform to reach beauty enthusiasts at various stages of their shopping journey, from awareness to purchase. This targeted approach allows brands to optimize their advertising spend and drive higher conversion rates.
As brands evaluate their retail media strategies, the choice between multi-category and category-specific RMNs becomes crucial. Multi-category RMNs offer scalability and broad reach, making them suitable for brands looking to cast a wide net. However, the specificity of category-specific RMNs allows brands to tailor their messaging and connect more intimately with their target audience.
Investing in retail media marketing is not merely a trend; it is becoming a necessity for brands aiming to stay competitive. The Modern Retail+ Research report indicates that a significant number of brands are increasing their budgets for retail media advertising. This shift is largely driven by the desire to enhance brand visibility and drive sales in an increasingly crowded marketplace.
Moreover, the report highlights that brands are not only investing more in retail media but are also diversifying their advertising tactics. While traditional display and search advertising remain popular, brands are increasingly exploring emerging formats such as video and programmatic advertising. These formats enable brands to create engaging and immersive experiences for consumers, enhancing their overall effectiveness.
A key takeaway from the report is the importance of data-driven decision-making in retail media strategies. Brands that harness data analytics to inform their advertising efforts are more likely to achieve success. By analyzing customer behavior and preferences, brands can refine their targeting strategies and optimize their ad spend. This data-centric approach enables brands to measure the effectiveness of their campaigns and adjust their strategies accordingly.
In conclusion, the maturation of retail media networks represents a significant opportunity for brands. As RMNs like Gopuff and Ulta continue to build on their strengths, brands must carefully consider their retail media strategies. The choice between multi-category and category-specific networks will depend on a brand’s objectives, target audience, and marketing budget. As the retail landscape continues to evolve, those brands that invest wisely in retail media marketing will be well-positioned to thrive in this competitive environment.
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