In recent times, the retail media has experienced unprecedented expansion. Ads for sponsored products have increased rapidly, first in Amazon and then throughout the ecosystem, as many Retail Media networks sought to monetize their ecommerce traffic. This pursuit has driven the majority of ad spend in Retail Media and fueled the growth of a market that it is expected to reach 45,000 million dollars in the United States this year 2023.
The ‘journey’ of retail media It’s just getting started, and the use cases have gone well beyond simple shopper marketing (displaying advertising within retailers’ digital channels) to more complex external activations based on first-party and second-party data. And that heralds the next phase of the Middle Retail boom. According to data collected by Insider Intelligencein just five years, Retail Media has gone from reaching 1,000 million dollars to 30,000 million dollarss. Growth more than twice as fast as that of social networks (11 years) and search (14 years). We see more and more brands and retailers betting on this discipline and everything points to the fact that the Retail Media Will Become Performance Advertising and it will be the largest of the three great waves of digital advertising.
According to the forecast of Insider Intelligencethe digital ad revenue Outside of Retail Media networks are reaching a tipping point. They represented 12.7% of the US Retail Media market last year and are now gaining momentum. On his side, he digital ad spend off-site retail media networks in the United States will increase by almost $2 billion this year to reach $6.54 billion, a growth of 37.7%. Its current exponential growth trajectory further points to even larger increases in net new ad spend in the coming years.
Spending on advertising in Retail Media, TV and RRSS
brands need omnichannel sales data To get a full picture of the return on ad spend (ROAS). As retail media ads move to display, video, and broadcast TV, brands will be ready to take advantage of closed-loop measurement that links ad exposure to sales.
With almost 85% of sales in stores, brands will want to know how the products on the shelves of physical stores, and not just those in the online channel, are influenced by these ads. But they’ll also want to make sure that attributed sales are actually incremental to give them a truer picture of ROAS. For this reason, the networks retail media they will need to incorporate their offline sales data if they want to encourage further investment in the brand.
