How Boots, Co-op and Very are preparing to grow their retail media networks

Just this month, Tesco Media and Insight Platform launched video advertising on Tesco.com and Co-op announced it is introducing digital screens to 300 of its highest footfall, urban locations to bolster its media offering.

Behind the development of many of the UK’s largest retail media networks is commerce marketing agency SMG and chief executive Sam Knights says each retailer wants to create something different to reach a certain type of shoppers.

“It’s an incredible opportunity for retailers to grow new margins, new revenue and drive sales by building media agencies,” he explains. “You get the flywheel of money coming into the business that is then being reinvested immediately, and this keeps growing. 

“One of the challenges is making sure that everything you do is aligned with your own marketing. 

“You can’t allow brands to do whatever they like, so having a really strong customer plan would be the first thing you get right. Then it’s great for retailers to drive margin, drive profitability, drive sales, and build customer loyalty.”

With this advice in mind, Retail Week attended the Retail Media Summit in London to find out who is making the most out of what media networks have to offer.

Boots

With over 17 million active users of its Advantage Card, Boots knew there was an opportunity to get the most out of this customer data.

While the customer base is there, group partnership director at Boots Media Group Georgia Martin says it’s easy to underestimate how challenging retail media can be to organise.

“You’ve got to have trading teams, marketing, PR and supply chain on board, then create campaigns with the customer at the heart of it while hitting the objectives of what Boots wants to do. 

“On top of that, you’ve got the developments of technology that are needed to be able to access and evaluate that customer data to give transparency to brands.”

She adds that making Boots and the involved brands act as one cohesive campaign drives sales for brands and gives them first-party data.

For Boots, it enables more reach, bigger and better campaigns, and an added revenue stream.

The current priority is to boost the omnichannel experience for customers and turn Boots into a point of difference with up-and-coming brands onboard.

“There’s lots of exciting plans for Christmas,” Martin explains. “I can’t say too much at the moment, but the ambition is for Boots to have its biggest Christmas yet with lots of new and exciting partnerships and opportunities for brands to do something really different.”

Co-op

Launching its own retail media network in January, The Co-op’s first focus was to “champion the underdog” which is convenience and then work from there.

Dean Harris, head of Co-op Media Network, says retailers that sell products across several categories may find it hard to stay prioritised on their targeted offering.

“Any new media opportunity is a yes, because why wouldn’t it be?” he says.

“Our proposition keeps us quite disciplined because we have convenience as our priority, so a good idea isn’t necessarily a good idea for us.”

Digital screens across some Co-op stores are being rolled out to better target customers, increase engagement for brands, and reach customers who are passing by.

So far, Harris says the brand feedback on the Co-op’s overall retail media strategy has been “really great”, with the retailer’s surveys showing client satisfaction is increasing.

“We’re seeing faster execution, less errors, and improved performance for brands, which has given us more confidence to invest in it.”

Harris explains that the Co-op’s 5.5 million plus members are continuing to grow and that it is working out what it can do next.

“We’re now at a good point where we can see how brands can utilise media channels,” he says.

“So social media platforms, websites, streaming channels, we’re planning how we will have a convenience-led proposition in those worlds as well.”

Very Group

The Very Group recently announced a “reimagining” of its retail media network – combining its existing in-house team with SMG and advertising company Criteo’s commerce media platform.

Boasting over 4 million customers, the retailer is now able to bring its customer data and new creative platform together to showcase brands shoppers love or may not have seen before.

Very Media Group head of trading and partner brands Laura Jones says brands are enjoying “bespoke, co-created campaigns” led by data, which is also driving great return on investment for Very.

In terms of what’s next, Jones says: “We’ve got over 500 data points as part of our Media Group, and we are developing our technology infrastructure over the next 12 months.”

“We’re looking to enhance the proposition and technology so that in the future we can serve real-time data to our brands so they can adjust and inform as campaigns are live. That’s what the brands are really excited about.”

As retail enters peak season, Jones explains that the recently launched fashion platform “Haus of Flamingo” and “Let’s Make It Sparkle” campaign will demonstrate the best of its brands and creativity.

“It showcases aspirational content across multiple divisions and enables us to show the breadth of our platform,” she says.

“We are tech enthusiasts, fashion enthusiasts, sports enthusiasts, and under Haus of Flamingo, were able to showcase one consistent, creative format.”