4 key questions for building a winning Retail Media mindset
After the major disruption in global advertising and marketing caused by social media and search engines, it seems Retail Media is ushering in yet another big wave of change. How do we know this?
- Retail Media saw $126 billion in growth in 2023.
- According to WARC (World Advertising Research Center), it's forecast to grow by another 10%.
- There are currently 216 Retail Media Networks worldwide, with major players like Amazon, Walmart, and Kroger.
- Additionally, 64% of executives at U.S. retailers plan to implement a retail media network by the end of 2024
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Why is Retail Media Network so powerful?
Simply put, it takes learning and the best practices from existing digital media channels while capitalizing on the declining power of TV advertising. This is all possible because Retail Media sits at the crossroads of three major trends:
- The demise of third-party cookies and identifiers, reshaping digital advertising.
- The digitalization of stores, enabling the collection of first-party data.
- The decline of traditional TV advertising.
As Retail Touchpoints media put it: “Not only does retail media allow retailers to access untapped revenue from their existing channels and first party data, but it has arrived at a moment of great disruption in the world of marketing. Traditional TV viewership continues to decline at the same time that the third-party cookies marketers have become reliant on to effectively target their digital campaigns are going by the wayside.”
So, what exactly is Retail Media?
In simple terms, Retail Media refers to the advertising space—both onsite and in-store—that a retailer owns and makes available for brands to run advertising campaigns.
Retail Media channels can be classified in many ways, but the simplest approach focuses on two main pillars:
- Digital Retail Media (onsite, offsite, and digital in-store).
- Retail Media Network (a blend of traditional in-store advertising and digital retail media)
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What does this mean for BRAND-RETAILER dynamics?
Just as the entire market is being disrupted, so too is the brand-retailer dynamic. A shift occurs: retailers now act as sellers, while brands become clients.
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Sales teams often lack media expertise, while marketing and brand teams may have limited retail or account management experience. This raises important questions: Where are the funds coming from—trade, media, or shopper budgets? Should investments in Retail Media Networks be incremental to existing trade promotions and media plans?
With so many consumer touchpoints available, knowing where to start can be challenging. There isn’t a one-size-fits-all solution, but with a solid, data-based, and insights-driven strategy, many different approaches can be effective.
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How can market research help?
Once you have a strategy or a preferred mix of Retail Media channels in mind, research can help identify what will yield the best results and which combinations will work most effectively.
EyeSee offers a unique Retail Media research framework that allows you to test and compare campaigns across channels—whether they’re onsite, offsite, or in-store.
Let’s connect!
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