蘑菇AV

Retail media ads are an important way to boost marketplace spend, but how brands go about advertising requires strategy. When setting up your retail media approach this holiday season, consider which products sell when, what kinds of ads drive conversions, and the importance of discovery in retail media.

Following performance measurement is the most important factor in allocating budget to retail media, according to 56% of US consumer packaged goods (CPG) manufacturers, per a December 2023 survey from Skai and Path to Purchase Institute.

As retail media grows, it is changing. At the moment, search remains retail media鈥檚 bread and butter and sales ads are the best awareness drivers. In the future, in-store media and shoppable video ads may take on a bigger role. But no matter how ad formats change, one thing is for certain: Measurement will be key for retail media鈥檚 continued growth.

Retail media spans a broad and growing merchant list, from marketplaces (Amazon) to department stores (Macy鈥檚) to ride-sharing apps (Uber).

Retail media just got even bigger. We recently updated our US retail media ad spend forecast to show higher growth than previously estimated, culminating in $109.40 billion in spend in 2027.

Yesterday, The Home Depot hosted its first in-person retail media marketing summit, InFronts, where it introduced its revamped retail media network, Orange Apron Media. In addition to the new name, the retail media network will expand its services to include a unified on-site/off-site platform, a data clean room solution, and new media partners.

On today's episode, in our "Retail Me This, Retail Me That" segment, we discuss the current retail media era, the partnerships that make the most sense, and how social media plays a role in this space. Then for "Red-Hot Retail," our analysts give us four spicy predictions about the future of retail media. Join our analyst Sara Lebow as she hosts vice president and analyst Andrew Lipsman and analyst Max Willens.

Retail media will be a $45 billion market this year and will continue to grow by about $10 billion in 2024, according to our forecast. Currently, the majority of retail media ad spend is driven by search. But the next phase will be driven by upper-funnel formats and in-store ad opportunities.

As retail media grows, it鈥檚 becoming increasingly complex, prompting some marketers to take a step back and rethink how they鈥檙e approaching the channel.

77% of US advertisers incorporate on-site ads as part of their retail media strategy, according to a February 2024 report by Skai and Path to Purchase Institute.

Which networks should brands be paying attention to as they refine their retail media strategy? From the king of them all to the ones that are just catching up, here are five retail media networks to keep an eye on this year.

Think of off-site retail media as filling a bus with potential customers and driving them directly to your storefront, Bob Coon senior vice president of US sales at TripleLift, said during a recent 蘑菇AV webinar. But just delivering customers to your storefront doesn鈥檛 guarantee they will buy. Here鈥檚 what retailers and marketers need to know to take advantage of off-site retail media.

In a recent meta analysis, Grocery TV discovered that consumer packaged goods (CPG) brands averaged a 14% increase in incremental sales when advertising through its in-store retail media network.

Across Western Europe, inflation and uncertainty have hit consumers and businesses alike. But some may prosper in these conditions鈥攕uch as brands using retail media networks and firms advancing sustainability goals.

Retail media will stay ahead of connected TV (CTV) in US ad spending and close in on traditional TV this year, according to our forecast. Search overall, including paid search on retail media networks, will reach $108.48 billion in 2023.

Retail media partnerships are the future of TV.

US buyers鈥� most valuable metric when assessing campaign performance on retail media networks isn鈥檛 return on ad spend (ROAS) or ROI. It鈥檚 incrementality, according to May 2022 data from Criteo.

On today's podcast episode, we discuss how retail media is meeting the demand for full funnel campaigns, what folks are building to help with measurement, and how in-store audio can upgrade the experience. "In Other News," we talk about whether there is enough money to go around in retail media and why performance marketers are shifting their priorities to brand building. Tune in to the discussion with our analyst Sarah Marzano and Ryan Mayward, SVP of retail sales at Walmart Connect.

Cara Pratt, SVP of Kroger Precision Media, is right when she says that 鈥渞别迟补颈濒 media is 尘别诲颈补.鈥� While the fast-rising ad format may draw its unique power from retail鈥攕pecifically the first-party consumer purchase data used for high-octane targeting and closed-loop measurement鈥攊t鈥檚 not a physical product sold on store shelves and shouldn鈥檛 be treated as such.

The stat: 84% of US marketers say that they are more likely to invest in retail media because of third-party cookie deprecation, per a LiveIntent survey.

Retail media is one of the fastest growing ad channels we track, due in part to the allure of closed-loop attribution powered by retailers鈥� first-party consumer data. But advertisers are starting to curb their enthusiasm given measurement challenges stemming from the lack of methodological standards across platforms. As it stands, it鈥檚 nearly impossible for advertisers to compare platforms against each other, which can lead to misallocation of budgets.

A lack of standardization across platforms was cited as US marketers鈥� No. 1 challenge with retail media networks (RMNs) as of last summer, according to the Association of National Advertisers.

The continued growth and success of retail media hinge on achieving measurement standardization, according to Jeffrey Bustos, vice president of measurement addressability data at the Interactive Advertising Bureau (IAB).

Cost, lack of third-party verification, limited on-site ad space, and limited activation options are some of the top challenges brands and advertisers in the US, France, Germany, and the UK face when using retail media networks (RMNs), according to an August 2023 DoubleVerify study.

With seemingly everyone jumping onto retail media, it may feel too late or intimidating to grab a piece of the pie. But that鈥檚 not the case, according to Jason Farver, Hy-Vee鈥檚 executive vice president, chief supply chain officer, and president of RedMedia.