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Asos looks to retail media to spur growth

This article was written with the assistance of ChatGPT.

The news: Ecommerce giant Asos is expanding its Asos Media Group (AMG) retail media business in the face of a challenging economic environment, per The Drum.

  • The retailer launched its retail media business in 2021 and currently supports social media campaigns, targeted emails, and app push notifications.
  • It recently partnered with Criteo to help it expand its advertising offerings.

Inside Asos’ plan: The Criteo partnership is helping Asos launch three new offerings: sponsored ads in Asos search results and product listings; an extension of on-site display ads; and client ads off-site and eventually on connected TVs that use first-party user data.

  • By expanding its offerings, Asos aims to broaden its appeal to better compete with brands such as Boots that have recently launched their own retail media networks.
  • The retailer has big plans to expand its advertiser base. Roughly 150 brands currently advertise on its platform, and it aims to onboard 200 more. Eventually, it plans to work with 900 advertisers.

The big takeaway: It’s a no-brainer for Asos to turn to advertising since retail media is a logical extension of its core business and it generates a significantly higher margin than selling goods in stores or online.

  • With retailers of all sizes rolling out retail media networks, the onus is on retailers to broaden the scope and scale of their offerings to attract advertisers’ dollars.

Go further: Learn more about the fast-growing retail media market in our Retail Media Explainer.