Let’s start with the basics. What is a media network?
An Overview of Media Networks
A media network is when a company, like a retailer, becomes not just a buyer of ads for itself, but a seller of ads for others as well. The retailer secures and sells ad inventory to outside brands across a variety of channels, creating a “network” of media that promotes brands and products to its retail customers, both in-store and digitally.
Media networks are a lucrative way for companies to monetize the first-party customer data they have, while helping brands identify and target shoppers who might be likely to buy their products.
While retailers have been leading the way when it comes to media networks, the industry has only scratched the surface of the innovation that’s possible when brands collaborate to create media networks. And it’s not just retailers who can build “retail” media networks, according to researchers at McKinsey & Company.
“The first-party data and customer touchpoints owned by hospitality brands, travel, and hotel providers, telecommunications companies, banks, and automakers, for instance, may also lend themselves to contextual advertising that consumers opt into in return for more relevant, tailored experiences,” they wrote.
Brands of all sizes and across industries have a stake to claim in the media network race, and it all starts with the unique value of your first-party data. This data leads to consumer insights that have the power to be transformative for your brand, partners, advertisers, platforms, industry, and most importantly, your customers.
I know what you’re thinking: launching a media network can be tough. How do you differentiate your offering from other platforms and attract more advertisers so that you can grow revenue and scale?
Best Practices for Launching a Media Network
Here are three best practices to keep in mind if you’re thinking about launching a media network:
- Define your media network’s vision and value. The first step is establishing a clear vision. That will help you evangelize the unique value your media network delivers. Here are key questions to ask yourself as you’re defining the vision for your media network:
- What are the business goals for your media network?
- What problem are you solving for advertisers?
- Who are your key stakeholders?
- Find the right talent, tech, and partners for your media network and brand. From defining your network’s vision to choosing the right tech partners, approach every decision with your customer in mind. As you evaluate resources, consider these questions:
- What are my team’s capabilities and skills for establishing a successful media network? Where are there gaps?
- What elements of my media network and tech stack should I outsource? What can my team achieve in-house?
- How will my partners help me safeguard our customers’ data? Will partnering organizations require unnecessary movement or replication of our data?
- Keep pushing innovation. Your customer never stops evolving and neither should your media network. Lean into measurement and testing to discover where in the customer journey your network should innovate next. For example, During the pandemic, Tripadvisor worked with Lysol to launch the “Travel Safe” campaign, using the media network’s data to target owners of hotels and restaurants with Lysol kits.
Innovation is a must for building a competitive edge for your network and adding to the value of your first-party data. Advertisers want to do business with media networks that have high-quality data, far-reaching audiences, in-depth measurement, and rich consumer insights that drive powerful brand and business growth. At every stage of your media network, pushing the boundaries of innovation will pay dividends.
This blog was originally published on Jessica’s Shapiro’s LinkedIn. Follow her for more CMO insights.
