In the ever-evolving landscape of digital advertising, Canada is witnessing a significant shift towards online ad spending. Projections for 2024 indicate that a staggering 71% of all ad dollars will be allocated to digital advertising. This trend is not new; in 2022, online ad spending in Canada reached $14.2 billion, marking a 15% increase from the previous year.¹ Mobile ads dominated the scene, capturing 67.64% of the ad spend, followed by desktop (26.94%), connected TV (4.48%), and Digital Out-of-Home (DOOH) advertising (0.95%).²
The Role of Shopper Digital Media
Shopper digital media plays a crucial role in reaching category buyers, driving pre-shop consideration, and boosting sales conversion for brands. By strategically targeting consumers during their shopping journey, brands can enhance their visibility and influence purchasing decisions.
Understanding RMN and RAMP
To navigate the digital advertising space effectively, it’s essential to understand the differences between Retail Media Networks (RMN) and Retailer Agnostic Media Platforms (RAMP).
Retail Media Networks (RMNs) are advertising platforms or apps aligned with a specific retailer. They leverage exclusive first-party data to serve hyper-targeted advertising content and offers to consumers, typically during their shopping trip planning phase. This alignment allows brands to tap into detailed customer profiles and deliver ads with high contextual relevance.
The key benefits of RMNs include:
- Precise Targeting: RMNs utilize first-party data to create detailed customer profiles, allowing for precise ad targeting.
- Contextual Relevance: Ads appear in a relevant shopping context, increasing the likelihood of engagement.
- Performance Metrics: Brands can access real-time performance metrics to optimize their campaigns.
- Coordinated Campaigns: Marketing efforts can be aligned with retailer promotions and events, enhancing campaign effectiveness.
Retailer Agnostic Media Platforms (RAMPs) on the other hand, transcend individual retail ecosystems. These platforms enable brands to create holistic, data-driven advertising strategies that reach consumers with tailored messages, regardless of where they are in their shopping journey. This approach offers greater flexibility and the ability to adapt to changing market dynamics.
The key benefits of RAMPS include:
- Scale: RAMPs offer mass reach across diverse audiences in different retail environments.
- Flexibility: These platforms can adapt to market changes and explore new channels.
- Cost Efficiency: Brands can avoid exclusivity fees associated with RMNs.
- Cross-Channel Insights: Gain valuable insights from multiple retail touchpoints, enabling more informed decision-making.
The Unified Commerce Approach
From LPi’s perspective, to maximize ad spend efficiency, build loyalty, attract new customers, and quickly adapt to market changes, it’s important to take a unified commerce approach to shopper digital media. By integrating both RMN and RAMP strategies, brands can leverage the strengths of each platform, ensuring a comprehensive and effective digital advertising strategy. As digital ad spending continues to rise in Canada, understanding and utilizing the unique benefits of RMNs and RAMPs will be crucial for brands aiming to stay ahead in the competitive landscape. By adopting a unified commerce approach, brands can optimize their ad spend, drive sales, and build lasting customer relationships.
Sources: ¹Insider Intelligence March 2023 ²IAB Canada Revenue Study June 2023
