REGIONAL RETAIL MEDIA NETWORKS (RMN): LESSONS LEARNED FROM SCHNUCKS’ LAUNCH
In January 2024, Schnucks made a significant move by launching their 1P offsite Regional Retail Media Networks (RMN), marking a pivotal moment in the evolution of digital advertising in the retail space. As RMNs transition from national giants like Walmart to mid-tier players such as Hy-Vee, and now to regionals like Schnucks, the landscape of digital media funding is rapidly shifting. At DIGITS, we’re dedicated to helping regional retailers claim their fair share of this digital media pie to target local shoppers and enhance their store experiences. With 2024 and 2025 poised to be monumental years for the growth of regional RMNs, we’re excited to share some key insights from our experience launching RMNs for regional grocers.
TEACH
One of the fundamental keys to a successful Regional Retail Media Network launch is education. Many merchants and CPG sales leaders at the regional grocer level may not have previous experience with onsite or offsite media campaigns. To bridge this knowledge gap, it’s essential to invest time in teaching them about the customer journey, the financial and sales benefits of RMNs, and the execution process. At DIGITS, we hosted RMN 101 and 201 sessions for all staff members impacted by the launch, focusing on building a solid understanding of the fundamentals before diving into execution. Additionally, educating regional CPG representatives on the importance of investing in digital media and providing guidance on execution can further drive success.
ROAS IS EASY, I-ROAS IS HARD
While Return on Advertising Spend (ROAS) is a familiar metric for many brands, calculating Incremental ROAS (I-ROAS) presents its own set of challenges. Schnucks aims to excel in data analytics and transparency, which is commendable but can also introduce complexities when reporting bottom-line I-ROAS to brands accustomed to only analyzing top-line ROAS from larger retailers. It’s crucial to convey the value of driving I-ROAS, especially for new brands, products, and shopper acquisition efforts. While it may require hard work and patience, investing these initiatives is more critical than ever in today’s digital landscape.
NO BRAND INVESTMENT MODEL IS THE SAME
When rolling out Regional Retail Media Networks (RMN), retailers often face questions about whether it will merely shift in-store funding to digital channels. While the answer is nuanced, successful RMN launches require collaboration with manufacturers to secure incremental funding for digital initiatives. Through meetings with over 50 manufacturers, we’ve seen various approaches, from reallocating funds from larger RMNs (preferred!) to piloting with trade funds that earns incremental shopper funds once successful. The key is for retailers and CPG partners to find a mutually beneficial path to support the digital marketing journey that benefits them both.
IT TAKES A GREAT TEAM
Launching an RMN requires a dedicated and experienced team. Jay McComb has played a pivotal role in rolling out Schnucks’ media initiatives, serving as a reliable source of guidance and support for CPG vendor partners. Recognizing that most regional retailers may not have fully staffed and experienced teams for RMN launches, partnering with agencies like DIGITS and leveraging technology can bring a best-in-class program to life.
In conclusion, the launch of Schnucks’ RMN marks a significant step forward in the digital transformation of regional retail. By prioritizing education, navigating complex metrics, fostering collaboration with CPG partners, and assembling a great team, regional retailers can unlock the full potential of LESSONS LEARNED FROM SCHNUCKS’ LAUNCH Retail Media Networks to drive growth and enhance the shopping experience for their customers. At DIGITS, we’re proud to be at the forefront of this exciting journey and look forward to helping more retailers thrive in the digital era.
Want more? Here’s an article from Grocery Dive: How Schnucks is embracing retail media to stand out as a regional grocer
Dave Glaza, Founder & CEO of DIGITS, remains committed to bringing digital capabilities to physical stores!
LinkedIn: https://www.linkedin.com/in/davidglaza/
Follow DIGITS on LinkedIn: https://www.linkedin.com/company/digits-agency/
