For decades, fuel retailers’ bread and butter has been fuel, as the regular need for gasoline has led to billions of trips to the pump. Yet the growth of electric vehicles and the transition to clean energy has challenged fuel retailers like never before. How can fuel stations maximize outcomes while navigating this challenge? By reinvesting in retail growth with the help of media networks, which present an opportunity for organizations to grow business through non-fuel revenue and services.
First and foremost, they are retailer-owned advertising platforms. Retailers can leverage customer data to engage targeted audiences through the advertising spots that they sell. Indeed, data is the heart of media networks. It enables businesses to gain insight into their customers and understand how to better serve them. It also brings enhanced value to an organization, since data monetization opens up new revenue streams. With high margins and robust ROI, media networks give organizations the ability to monetize the information and relationships that they already own.
What does this mean in practice? Businesses can sell targeted advertising spots on their channels—such as kiosks, displays and apps—based on customer data. Due to the specialized nature of the advertising, media networks create a virtuous cycle wherein sales generate data, which in turn leads to more sales.
Figure 1: Organizations can reach their full potential and increase reach by leveraging both owned properties and offsite third-party channels
Media networks have already demonstrated their value to organizations of all kinds. As the fastest-growing advertising channel of all time, media networks will soon outpace television as an advertising platform: By 2028, advertisers are expected to spend more on media networks than television, representing a market share of 15.4 percent.
Media networks also promise growth for the companies who invest in them by opening opportunities, including:
Company A, a large luxury retailer, is a brick-and-mortar powerhouse that has spent more than a century building a strong base of loyal customers. In recent years, it has invested in its digital presence—including the construction of a media network. With Publicis Sapient’s help, Company A built a media network from scratch. Over the course of three years, the organization realized more than $120 million in revenue through its multichannel media network, which also earned the distinction of being named one of the best in the United States.
Fuel retailers are bracing for turbulence as the world transitions to clean energy. BloombergNEF anticipates that global demand for fuel will drop by up to 29 percent from its projected peak in 2027. To prepare for turbulence, oil and gas companies can look for new revenue streams to offset any shifts in fuel demand. Thanks to their base of customers and network of locations and franchises, fuel retailers are perfectly positioned to enhance their revenue with the help of media networks.
So, what exactly can media networks do for fuel retailers?
Data on consumer buying patterns can enable a company to zero in on a customer that frequently purchases energy drinks, for example. The company can target ads to that customer while they are at the pump, facilitating the impulse to buy an energy drink. Companies can then scale this model by targeting customers with similar profiles, giving them deals on the products they love while driving business to the store.
Like any new investment, media networks may introduce certain challenges to fuel retailers that are building them. These challenges include:
The lifeblood of media networks is a clean, integrated data system that organizations can leverage. “Data is the new crude oil,” says Xavier Armanno, Publicis Sapient’s group vice president for strategy and consulting. “Just like crude oil, data needs to be discovered, extracted and refined. It needs to be fit for purpose before it’s taken to market.”
To build a successful media network, businesses must first have in place modern digital infrastructure and operational teams that allow them to discover, extract and refine the data that they have. By investing in data monetization and modernization, fuel retailers can develop the capabilities they need to unlock the full benefits of media networks. They can do this in four stages:
For Company B, a quick-service restaurant, strong customer relationships are the heart of its business. As a result, it has built a loyal base of customers. Company B wanted to take customer engagement to a new level. Media networks were the solution since they empower Company B to personalize products for targeted customers. Unlike Company A, which wanted to run their own media networks after Publicis Sapient helped build them, Company B sought a partner to create and maintain a media network on their behalf. To that end, Company B collaborates with Publicis Sapient under a shared model. In this partnership, Publicis Sapient relies on its digital expertise and sales relationships to oversee network operations, campaigns and reporting for Company B, which reaps high rewards with a small investment and low risk.
Media networks present fuel retail the opportunity to diversify their revenue by creating new, high-margin streams and significantly enhancing customer experience. As a holistic digital transformation partner, Publicis Sapient helps organizations craft and run their networks according to their specific needs, ranging from collaborating with a company to plan their network to fully running and maintaining it. Publicis Sapient empowers organizations to confidently meet the future with the help of media networks.
Get it touch to learn how Publicis Sapient can help fuel retailers unlock new revenue streams.
Craig Gosling
Senior Client Partner
Let's connect
Related Reading