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58% of brands and 51% of agencies would like to see retail media-like offerings from verticals beyond retail, according to Q4 2023 data from Criteo.

Earlier this year, Best Buy partnered with CNET to expand advertisers鈥� reach among high-intent shoppers. This is a part of a larger trend where retail media networks (RMNs) team up with outside partners to expand their ad capabilities.

Retail media is the fastest-growing ad channel we track in the US, growing by 26.0% this year. Its share of total US media spend will reach 14.1% this year, and come 2028, nearly 1 in 5 ad dollars spent in the US will go to retail media. But the channel has the potential to grow even more. Here are four key factors that present challenges to retail media growth right now.

Collective TV integrates CTV and retail media: Albertsons' new platform offers advanced ad solutions, driving digital video ad growth through shoppable content.

CVS Media Exchange (CMX) announced yesterday the beta launch of a new self-service offering in collaboration with The Trade Desk. The offering includes enhanced audience targeting, transparent ad pricing, the ability to activate media through its data service provider, and improved performance insights.

鈥淧eople are always talking about retail media, but no one is talking about this retail media consumer that is comfortable doing things in-app,鈥� she said. Exchanging ad interruptions for free content. Advertising within mobile games can give brands repetitive exposure to consumers.

Albertsons adds non-endemic ads: Retail media expands its ambitions as the category matures.

US in-store retail media ad spend will total $370 million this year. But as the channel expands, oversaturating stores with ads can cause tension between retail media teams, which focus on maximizing ad dollars, and merchants, which focus on the store as a whole. Online advertising and in-store advertising are not two distinct channels, but instead work together.

In part two of this two-part podcast episode, we discuss some more predictions for 2024 that are too specific to be 100% certain about but could still come true, including: what happens next when measuring retail media, Starbuck's drone delivery pilot, and how the publisher/AI relationship will play out. Tune in to the discussion with our vice presidents of content Suzy Davidkhanian and Paul Verna and analyst Max Willens.

Retail media is moving beyond performance to become a tool that marketers can use to drive both sales and brand awareness. In this next evolution, off-site, in-store, and upper-funnel formats like connected TV (CTV) and social will play a larger role in marketers鈥� retail media strategies as they seek more scale and control over their campaigns.

Retail media networks deliver 183% higher engagement, but with tradeoffs: Viewability and strategic ad placement are key, says new DoubleVerify report.

As retail media moves both off-site and in-store, audio is becoming a bigger part of the ad mix. Here are two ways brands can incorporate audio into their retail media activations.

Amazon is the biggest retail media network in the US, accounting for three-quarters of retail media revenue share, per our forecast. But its limited grocery footprint leaves an opportunity for competition. Here are recent updates in grocery retail media, and a prediction on the future of in-store retail media.

If the 鈥凌别迟补颈濒 Media 1.0鈥� era was primarily about search-driven ecommerce, then Retail Media 2.0 (with credit to Peter Moustakerski) will be about moving up the funnel and across retail channels

Retail media is outpacing non-retail media in growth in US search ad spend. As performance-driven advertisers push closer to the point of sale, companies like Amazon benefit. Here鈥檚 what鈥檚 behind retail media鈥檚 search success.

Search is already a major component of retail media; social is the next integration. Advertisers still view social media as a discovery medium and retail media as a conversion-driver. But both platforms are 鈥減otentially full-funnel,鈥� according to Liz Cole, executive director and US head of social at VMLY&R, speaking at our 鈥淎ttention!鈥� summit.

Before retail media, brands would pay retailers to market their products, but weren鈥檛 necessarily involved in how they were promoted. 鈥淣ow, it鈥檚 more of a conversation,鈥� said Melanie Babcock, vice president of Retail Media+ and monetization at The Home Depot. Retail Media+ is The Home Depot鈥檚 retail media network.

Retail media networks may be working on standardization, but a universal measurement system is still a dream. Aside from a sluggish move toward standardization, here are four predictions about the future of retail media networks our analysts gave on our 鈥淏ehind the Numbers: Reimagining 搁别迟补颈濒鈥� podcast.

Retail media has matured greatly since our 5 retail media networks (RMNs) worth watching. That evolution has come from growth in spend (we forecast US omnichannel retail media ad spend growth at 26.0% this year, with larger increases in off-site and connected TV), in-store innovations, and new entrants from other non-retailers.

鈥淲hat鈥檚 really exciting about retail media is a lot of it is uncharted territory,鈥� said Paul Longo, general manager of retail media at Microsoft. 鈥淲e鈥檙e in inning two, inning three. What鈥檚 gotten us here will not get us where things need to be.鈥�

When retailers allow non-endemic brands to advertise, it benefits both sides. 鈥凌别迟补颈濒ers can further monetize their data, while non-endemics, who have an appetite to expand their reach, are able to leverage that data,鈥� our analyst Sarah Marzano said on an episode of the 鈥淏ehind the Numbers: Reimagining 搁别迟补颈濒鈥� podcast. Here鈥檚 why major retail media players such as Walmart and Home Depot have recently opened up their offerings, along with three best practices to boost performance.

Retail media works. For 77% of US organizations, retail media has either met or exceeded KPI expectations, according to a December 2023 survey from Skai and the Path to Purchase Institute. Only 3% say it had little or no impact on desired objectives.

Some 58% of Association of National Advertisers (ANA) marketers used retail media networks last year, according to a report from the ANA. In the next year, expect to see more movement from marketers outside of consumer packaged goods as brands look to take advantage of the recession-friendly ad space.

In 2024, retail media ad spend will grow 28.6%, coming to just under $60 billion, per our forecast. To reach that potential, retail media networks (RMNs) need to identify what attracts advertisers and set them up for success. Here鈥檚 how three consumer packaged goods (CPG) leaders are thinking about retail media.