→ Retail Media in Hospitality: A promising choice in the media mix

Retail media, essentially works by buying ad space within a retailer app, website and in every other digital space where customers interact and spend time. For instance, a brand can advertise their product at Tesco, so it can drive discoverability and more conversions.

Retail media can be a powerful lower funnel tool because the interaction occurs closer to the purchase. Yet, it doesn’t work well converting infrequent buyers. This is its nature. Retailers are in a preferable position because they carry a lot of first party cookies enriched in intent data (think Amazon, Walmart or Hilton). Brands love it because they can use that data to make targeting more effective. Especially at a time where is assumed that soon, very soon third-party cookies will disappear. Indeed, somewhere out there is already happening - hey Facebook :)

If you are worried how big these networks can became look at latest revenue figures of Amazon Advertising. $9.5 billion!

Or this graph:

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But this is by no means to suggest that retail media is the single media brands must use. However, it is definitely a strong contender when evaluating their media mix.

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Retail Media in Hospitality

Recently, Marriott reported they are building a media network. They will allow brand to advertise they products and services across multiple touching point. It can be the website but also the gym, lobby, and the TV inside the room.

Hospitality brands such as Hilton, Marriott or IHG have rich loyalty programs that consists of customer preferences, purchase intent and many interesting insights. Brands from different categories are eager to use this data. For instance: If a buyer has consistently booked luxury hospitality products over the years than he/she can be targeted by a luxury watch brand. Unlike from Amazon, hospitality media networks have the opportunity to work with non-competing brands (luxury hotel – luxury clothing). To protect themselves from leaky traffic, hospitality brand must copy Uber which allows customers who want to purchase a product from any brand do that inside the Uber app.

But first and foremost, retailers must get the basics right: infrastructure, a lot of quality traffic and great analytics system.

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