Why Paid Search Is Retail Media’s Secret Weapon
In today’s rapidly evolving digital landscape, the intersection of paid search and retail media is becoming a critical battleground for brands aiming to capture consumer spending dollars. As retail media continues to gain prominence, many marketers are discovering that a solid foundation in paid search advertising, particularly on platforms like Google Ads and Microsoft Ads, provides a significant advantage to retail media expertise. The factors that are influencing this mindset? Technical proficiency, data-driven decision making, and both audience targeting and personalization.
Technical proficiency
One of the most significant advantages of having experience with paid search advertising is the seamless transfer of technical skills. Google Ads and Microsoft Ads are built on a foundation of keyword targeting, auction-based bid strategies, and performance optimization, which are also core components of retail media platforms like Amazon Advertising and Walmart Connect. Media agencies with deep roots in paid search advertising are well-equipped to navigate the complexities of retail media, as the underlying principles of auction-based media remain consistent across platforms and are second nature to seasoned paid search pros.
As an example, the ability to optimize bids based on real-time performance data is a skill that translates directly from Google Ads to Amazon’s Sponsored Products. Agencies with a background in SEM can leverage their expertise in campaign structure and keyword targeting to drive success on retail media platforms. This technical proficiency not only shortens the learning curve as retail media networks continue to expand, but also allows agencies to experiment and innovate more effectively within the retail media ecosystem.
Data-driven decision making
Another key advantage is the data-driven approach that SEM pros bring to the table. Paid search campaigns on Google and Microsoft require meticulous analysis of real-time performance metrics such as click-through rates, conversion rates, and cost per acquisition. These data points are critical for optimizing campaigns and understanding how each metric intertwines with one another, and helps ensure revenue and ROI targets are met. But to drive truly meaningful performance, an agency has to have an intimate understanding of consumer intent to make the most of these raw data points. This data-centric mindset and ability to parse through complex datasets to find meaningful insight becomes invaluable to driving strong client results.
Audience targeting and personalization
The third advantage is the deep understanding of audience targeting and personalization that comes with SEM experience. While SEM platforms are fundamentally driven by keyword targeting, they provide robust tools for audience segmentation, allowing advertisers to target specific demographics, interests, and behaviors. This expertise is crucial for retail media, where understanding the customer journey and delivering personalized experiences can significantly impact campaign performance.
Retail media networks like Amazon and Walmart allow advertisers to target shoppers based on their purchase history, search behavior, and other contextual signals. Agencies with a background in SEM are already familiar with the nuances of audience targeting and can leverage this knowledge to create highly personalized and effective retail media campaigns, ultimately leading to better client performance
Why marketers should care
The ascension of retail media platforms has created vast opportunities to grow retail businesses; by partnering with media agencies that possess strong SEM expertise, brands can tap into a wealth of knowledge that is directly applicable to the retail media landscape. As retail media continues to evolve, SEM skills are the secret weapon that will keep brands on top of this rapidly changing landscape.
