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Business Case for Retail Media Networks
Retailers are a cautious bunch – a technology needs to be proven before it can make any headway in terms of adoption. A classic example: retail media networks (RMN). This technology has emerged as a viable affordable technology within the past ten years. But while some retailers have successfully deployed RMN’s, overall adoption within the industry still remains low. A critical success factor for the technology is customer and employee response to the medium’s presence in stores – a key factor driving the return on investment in RMN’s – and for most retailers, the jury is still out. With more than three years of pilots, rollouts, and case studies available, the industry has finally begun to accumulate the data needed to overcome doubts and objections, but a definitive business case for RMN’s – one focused on those retailers who lack a natural base of advertisers to fund a network, and face the daunting prospect of installing thousands of dollars of equipment in each and every store – is still lacking. The objective of this research is to define a methodology and create specific metrics around what the financial opportunity, or business case, really can be. We created a tool to help identify the business case for Retail Digital Media Networks in specific retail chains. To use this benchmarking tool, click here. NOTE: Users of the spreadsheet reported errors in some of the calculations within the spreadsheet. These errors were corrected on 3/20/08. The corrections did not impact top-line results, but did have a material impact on bottom-line results, reducing the impact in the base case from 5% in the first year to 1.5%, and from 10% in the second year to 3.6%. If you find additional errors, please contact the author of the report, Nikki Baird, at nbaird@rsrresearch.com. From Nikki: "This isn't about being right, this is about getting good information into the industry domain. Please let us know if you find something questionable."
Retail Systems Research does share the details submitted by individuals downloading specific items of free research with the vendors who are sponsoring that specific research. It is for this reason that Retail Systems Research is able to offer a substantial body of research FOR FREE to end-users.