蘑菇AV

Kroger Precision Marketing has added Snapchat to its retail media offerings, enabling advertisers to use Kroger鈥檚 first-party data to target consumers with Snap or Story ad campaigns.

Recent news of Walmart鈥檚 expansion of in-store ads, including audio and product demos, plus The Kroger Co.鈥檚 planned roll out of digital ads in the cooler aisle, has intensified the spotlight on the rise of in-store retail media. This fast-emerging segment is perhaps the most critical development in the digitization of the store, retail鈥檚 next mega-trend. Physical stores have enormous鈥攁nd almost completely untapped鈥攑otential as the next major media channel, yet US retailers have been remarkably slow to adopt.

PubMatic's strategic alliance with Instacart boosts programmatic advertising: The initiative merges retail media data with advanced targeting for improved ad impact.

With the majority of retail sales still taking place offline, marketers are rethinking the in-store experience, attempting to combine the reach of physical retail with the engagement of digital channels via in-store retail media.

Amazon muscles in on Google and Meta鈥檚 ad throne: Retail media and Prime Video propelled the company to a blockbuster 2023鈥攁nd 2024 looks even brighter.

The world of retail media is always changing. Here鈥檚 what has caught our eye over the past few months.

Nearly three-quarters (74.2%) of the $59.61 billion in US digital retail media ad spend we forecast for 2024 will go to Amazon. That leaves $15.35 billion going to non-Amazon retailers and $370 million going to in-store formats.That should excite marketers, said 蘑菇AV鈥檚 new principal analyst Sarah Marzano.

On today's podcast episode, in our "Retail Me This, Retail Me That" segment, we discuss how standardization can unlock retail media spend, when we are likely to see it, and where the future of targeting is headed. Then for "Red-Hot Retail," our analysts give us some spicy predictions about the future of retail media ad buying. Join our analyst Sara Lebow as she hosts analyst Max Willens and vice president of business intelligence at Advertiser Perceptions Nicole Perrin.

Many advertisers see retail media solely as a performance marketing channel. But 7-Eleven鈥檚 retail media network, Gulp Media, is aiming higher up the funnel.

The retail media landscape is vast鈥攁nd growing. Brands can鈥檛 work with every retail media network (RMN), but they should find the right ones for their objectives. That starts with asking the right questions.

A more accessible and expansive Walmart+ membership will help the retailer to reach 29 million subscribers this year, while in-store retail media formats could boost ad revenues. A push into B2B, logistics, and international markets may also prove lucrative.

Amazon Ads remains the torchbearer for the fast-growing retail media industry. Despite nearly every major retailer launching their own retail media network (RMN) in recent years鈥攚ith several beginning to scale鈥擜mazon鈥檚 No. 1 position will be secure well into the future.

Targeted, relevant advertising that motivates shoppers to buy is the goal of any retail marketer. But with retail media advertising sitting so close to the point of purchase, the potential upside is even greater.

An emerging tension between retailer ads and customer experience (CX) is brewing as consumers grow more attuned to high ad loads online and in stores. Retailers鈥� core competency of delivering exceptional CX is now being pitted against their own retail media networks鈥� desire to expand their digital advertising surface area to capture high-margin revenues.

Retail media will continue to be the fastest-growing segment of digital advertising in the coming years. By opening up their digital platforms to third-party sellers, retailers can generate high-margin revenues from advertising and marketing services charged to sellers to promote their products both on- and offsite. Amazon has built a commanding lead in this space鈥擜mazon Ads draws more than three-quarters of US retail media ad spend.

US omnichannel retail media ad spend will increase by 22.6% next year for a total of $55.64 billion. One thing that could unlock spend even further? Standardization.

Retail media has been buoyed by consumer packaged goods companies and grocery brands looking to get their products in front of shoppers closer to the point of purchase. But now, other categories are looking to join the party: nonendemic advertisers.

Mobile apps are vital for commerce. In fact, among US smartphone users, 65.8% will use retail apps in 2024, putting the category behind only maps/navigation apps (72.8%) and weather apps (71.1%) in terms of adoption, according to our July 2023 forecasts.

New retail media metrics now available in Industry KPIs

鈥淲e鈥檙e showing 20.5% growth for retail media ad spending this year, and 22.9% actually accelerating into next year,鈥� said senior forecaster Ethan Cramer-Flood at our recent 鈥淎ttention! Seizing the Retail Media Opportunity鈥� summit. That stat assumes inflation will cool some in the second half of this year, which our forecasters currently predict it will.

BJ鈥檚 Wholesale Club is the latest retailer to launch a media network: At the same time, Instacart is adding more promotional capabilities to help drive sales among cost-conscious shoppers.

Younger consumers and higher-income shoppers are powering Walmart鈥檚 grocery growth while its physical footprint gives it an edge in retail media. Its burgeoning logistics business could be the next big thing for the retailer鈥攁nd its bottom line.