Lowe’s, The Home Depot, and Best Buy revamp RMNs to stand out

To take on retail media giants like Amazon and Walmart Connect, smaller networks need to constantly show what sets them apart and step up their media game.

Retailers in tough sectors like home improvement and consumer electronics feel this even more. That’s why Lowe’s, The Home Depot, and Best Buy have upgraded their media networks, zeroing in on solutions that help them attract more ad dollars.

Making renovations: The home improvement category is struggling as consumers pull back on any major improvements or purchases for their homes. This puts extra pressure on retailers like The Home Depot and Lowe’s to continually optimize their ad solutions, ensuring they’re engaging, effective, and measurable.

Earlier this year, The Home Depot revamped its retail media network, Orange Apron Media, to place more of a focus on what makes it unique—its dedication to customer service, whether that be the consumer or an advertiser.

• “We wanted to understand what makes us differentiated,” said Melanie Babcock, vice president of Orange Apron Media and monetization, of the rebrand. “And it’s really about our service model and how we use service as a lens to view our products and experiences.”
• In addition to a new name (which celebrates the iconic apron employees wear in stores), the RMN now boasts a simplified platform that combines on- and off-site campaigns, more robust measurement capabilities, and new media partners like Telemundo Univision.

The Home Depot also opened the network up to non-endemic advertisers.

• Over half (53%) of brands say they’ve partnered with retailers that don’t carry their brands, according to August 2023 data by Merkle.
• The time between retail media network launches and incorporating non-endemic offierings is narrowing, according to EMARKETER analysis.

Last month, Lowe’s followed suit, rebranding its RMN with a new logo and name.

• Lowe’s Media Network also announced it would launch four new channels this year—email, in-store audio, paid search, and direct mail for install services.
• This is in addition to the RMN’s current on- and off-site formats, including display, video, connected TV (CTV), and digital out-of-home.

Early results from Lowe’s beta roll out show in-store audio ads lifted both incremental sales and return on ad spend. This is a good sign considering performance-driven paid media is the top advertising capability and media investment most critical to retail marketers worldwide, per a November 2023 survey from MediaOcean.

Digital upgrade: Best Buy has also grappled with weakening demand, posting 10 straight quarters of declining same-store sales. To turn things around, the retailer recently refreshed its branding and introduced a number of new ways to keep shoppers engaged across its digital and physical channels.

• Best Buy’s app now features a home page with tailored content, a “Discover” tab where consumers can find new tech, and a “Shop with Videos” section with a curated assortment of videos.
• The retailer also began integrating product reviews and other content from CNET across the Best Buy app, website, and stores.
• Not only does this partnership help shoppers navigate the purchase journey more easily, but it also gives Best Buy more information on what kinds of content and products consumers are interested in.

Best Buy has also added experiential spaces within its stores featuring products from brands like GoPro, Tesla, Lovesac, and Starlink, providing shoppers with a chance to engage with products in real life.

These new capabilities join Best Buy’s current ad solutions, which include on-site search and display ads.

• We expect the majority (80.5%) of US omnichannel retail media ad spend to take place on-site this year, per our forecast.
• Almost half (51%) of Best Buy’s sponsored product listings were placed at the top of the page from Q3 2023 to Q1 2024, outpacing both Walmart and Amazon, according to data from Crealytics.
• The remaining 49% of product listings were placed in the shopping grid, on par with Walmart’s 50% and less than Amazon’s 80%. None of Best Buy’s product listings were at the bottom of the page, per Crealytics.

This was originally featured in the Retail Media Weekly newsletter. For more marketing insights, statistics, and trends, subscribe here.