Digital advertising is undergoing a revolution that begins with the gradual phasing out of third-party cookies. In the wake of enhanced privacy policies, the shift to first-party advertising networks and data signifies a significant change in how advertisers occupy the digital space wherein they do business.

What does that mean for you? As a consumer, the result is that you will see more advertisements and options targeted specifically to your needs and at relevant times. As a business, this changes how you approach digital advertising since you will rely on your own first-party data instead of third-party data. Predictive data analytics suggests that the everything-is-an-ad network approach is fast becoming the new standard by which digital retail operates.

Turning Metaverse advertising into tangible benefits requires a paradigm shift, but the potential rewards for retailers are enormous. Metaverse predictions paint the growing trends in an optimistic light for retailers, even smaller ones who lack the capital that Amazon, Meta, and other massive retailers can pour into their advertising.

Relevant advertising will change in the wake of privacy-based marketing and the phasing out of third-party cookies. Successful businesses will be the ones to take advantage of these burgeoning Retail Media Networks (RMNs) and make the most of an everything-is-an-ad digital marketing landscape.

What are Retail Media Networks?

What are Retail Media Networks, and how do they help your business navigate the shifting digital retail landscape? In short, RMNs are advertising businesses set up directly by retailers rather than resorting to third-party advertising companies. Many businesses are turning to Retail Media Networks, or are building the infrastructure now, to take advantage of the change toward first-party data-based markets.

The benefits to RMNs are twofold: privacy-compliant data collection and increased advertising relevance. With the greater emphasis on evolving privacy regulations and protecting the consumer’s data, third-party data like cookies are already struggling to remain relevant. Regarding huge retailers like the Metaverse, advertising is beginning to make more sense as an in-house operation. When retailers gather their own data through offline and online sources, they can use that data to directly inform how they advertise to consumers. The process eliminates the “middle-man,” helping close loops from consumer ad impressions to purchase points.

By simplifying the process and closing the loop, the retailer can more accurately connect with the consumer during the shopping process. Compared to the traditional, indirect method of gathering information that targets customers when they’re browsing the internet (and is becoming untenable due to the aforementioned changes in privacy regulations), this gives retailers more immediately usable data while protecting consumers’ rights. Connecting with the customer at a relevant time is a net bonus for the retailer; predictive data analytics prefer first-party data when it comes to effectively tailoring advertising to a specific customer.

Why This Is Exciting as a Consumer

Consumers have reason to be excited about these changes. In an increasingly digitised world, privacy is of paramount importance. Many consumers realise just how important privacy is to their safety and peace of mind and they must take steps to minimise their risk while shopping online. This is a smart move, but it could make things more difficult for retailers still dependent on the ageing third-party model.

Having advertising directly relevant to what one is shopping for is a better prospect for consumers just as much as it is for retailers who can successfully pivot to take advantage of the new advertising order.

Limitless Marketing Potential

Business owners are excited about the potential of RMNs to increase conversion rates. Targeting customers with advertisements while they’re actually shopping is likely to yield more direct results than the traditional models. The customer is more likely to spend and is actively looking for opportunities, which makes RMNs the most sensible approach.

The script will flip as first-party advertisers create a new ad-based revenue stream and opportunities to create partnerships with retailers. Online platforms like streaming and food delivery services can allow brands to access more inventory, turning their first-party data into actual revenue.

Adapting to Retail Media

While benefits may vary based on various factors, including the quality of the data and the inventory itself, advertisers can place their ads directly on a retail site, making RMNs an attractive option. While some businesses are afraid of the decline of third-party cookies in the face of advertising juggernauts like the Metaverse, predictions show that RMNs can yield a significantly higher profit margin of over 50%.

Retail Media Networks enable retailers to see the direct impact of their ad spending through closed-loop reporting: ad impressions directly correlate with sales on the platform, which makes it easier to interpret and, ultimately, inform lift efforts.

The Customer Experience Still Matters

Metaverse advertising is exciting, transformative, and its potential far surpasses traditional retail advertising methods. However, the power of a new metaverse-based ad paradigm mustn’t eclipse the customer experience. Little has changed from consumers’ perspective, who still respond poorly to inundation with ads. Even with first-party data informing the ads themselves, an overwhelming ad load negatively impacts conversion and churn rates.

Guidance Through the Metaverse and Beyond

Retail Media Networks are just the tip of the iceberg. So much has changed in the digital marketing landscape and will continue to change—it’s important to stay agile in the face of the advertising revolution. Acxiom understands the need to engage with customers anywhere and at all levels of the retail process. Moreover, we do so ethically and with a distinct data-driven approach. With privacy concerns, new regulations on the rise, and greater awareness of the value of first-party data, we know how to guide businesses to technological solutions that will meet their needs and evolving market conditions.