Convenience Vision Group Tackles Retail Media Challenges
AUSTIN, Texas — Though retail media networks (RMNs) provide plenty of opportunities for convenience store operators, the challenges of resource allocation, technology integration and strategic management remain, according to the Convenience Technology Vision Group's (CTVG) latest "Vision Report."
Based on CTVG's June 14 quarterly virtual meeting facilitated by Ed Collupy, guest speakers Kevin Struthers, chief product officer and cofounder at Axonet, and Doug Baker, vice president of industry relations at FMI (Food Marketing Institute) provided an overview of RMN programs and considerations and challenges.
During the membership discussion, the group recognized that large retailers are most apt to realize the benefits of a complete RMN, while agencies or conglomerates may be a path forward for smaller companies unable to work in-house. For those latter operators, industry cooperatives could achieve the necessary scale to compete with major retailers and attract consumer packaged goods (CPG) brands by pooling resources and data, even if it risked using third-party providers for advertising and losing control over branding.
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Members also considered the shift from third-party media to retailers managing their own content for better brand control and the effectiveness of different promotional methods. Personalized and targeted advertising was emphasized to maintain consumer engagement and loyalty, though some raised concerns regarding outdated ads and the challenge of balancing marketing costs.
CTVG members additionally looked at what leads to a successful RMN implementation concluding a strategic, cross-functional approach integrating marketing and information technology is best, along with leveraging artificial intelligence for efficiency.
"What I've found personally is it's not so much a technology issue and it's not so much a CPG or somebody wanting to buy the space," said Robert Hampton, vice president of technology services and innovation for Jacksons Food Stores. "It's 'do you have the person in marketing, the intermediary to manage all of this for you and to make sure you've got the proof of play, data getting out, that you've got the right things running at the right time?'"
The latest information from the full "Vision Report" may be found here.
Operating under the Vision Group Network, CTVG brings together invited leaders for quarterly virtual meetings to discuss technology issues impacting the convenience channel. The group addresses trends, challenges and solutions in artificial intelligence, computer vision, alternative payments, robotics, IoT, blockchain, cybersecurity, data analysis, EVs, food technology, frictionless checkout, digital experiences and workforce management.