He retail media it has become a key part of advertising strategies and now other channels will have to compete with this new discipline. In addition, the disappearance of third-party cookies is a key driver of ad spend growth in Retail Media; which offers an opportunity for advertisers that provide closed-loop attribution, on- and off-site channels, and deep insights. However, as with any new advertising channel, Retail Media It is not without its challenges. According to the study The Retail Media Opportunity in Europe made by IAB Europebuyers want to buy their advertising through one or more technology partners and the lack of integration of retail media ad technology is currently one of the main challenges.
There is no doubt that at the moment, Retail Media is one of the hottest topics within the digital advertising industry. IAB Europe anticipates that advertising investment in Retail Media reaches 25,000 million euros in Europe by 2026. To understand this new advertising sector, IAB Europe together with Xandr carried out a survey of more than 800 buyers throughout Europe in the fourth quarter of last year 2022 with the aim of knowing what their experience with Retail Media is and how they plan to use this new way to advertise in the future. The data revealed that currently 92% of advertisers and 74% of agencies are partnering with retailers to reach consumers. Of the rest, 88% of advertisers and 77% of agencies plan to do so in the next 12 months and 67% of those who are associating say they have had an experience “very good or good”.
Faced with the imminent disappearance of third-party cookies, 91% of advertisers and 76% of agencies see Retail Media as a key part of their advertising strategy. Another of the highlights of the report is that more than a third of those surveyed cite the data as one of the main drivers of the adoption of Retail Media. While 91% of buyers have a proprietary data strategy, 49% are still working to scale their proprietary data strategy. Closed-loop attribution is also key to growth. At this point, 36% of advertisers and 28% of agencies cite closed-loop attribution as a key opportunity to partner with retailers.
Integration with other advertising technologies, one of the main challenges
Despite the growth, the retail media It’s still a relatively new ad channel, so it’s not surprising to see that integration with other ad technologies still has a ways to go. According to the study, 33% of shoppers see the fact that retail media networks are not integrated with other ad technologies as a barrier to investment; On their side, 30% also cite a lack of available technology and data, suggesting that retailers need to focus on their technology and data offerings to continue their strong growth. He cost and standardization they are also barriers to investment. Specifically, the cost of partnering with retailers was cited by 26% of shoppers as a barrier to investment followed closely by the lack of standardization of metrics and reports (25% of shoppers).
Retail Media as part of the overall advertising mix
Similarly, the survey reveals that Retail Media is now an integral part of the media plan with 92% of advertisers and 74% of agencies currently partnering with retailers to reach consumers.
For his part, 62% of respondents said that ad spend in Retail Media is being reallocated from other advertising channels. At this point, the study notes that “traditional advertising channels are more likely to be affected when it comes to reallocation of spending.” 60% of advertisers and 45% of agencies are diverting budgets from traditional advertising channels towards Retail Media, closely followed by social networks with 39% of advertisers opting for this channel. In 2022, according to data from Statistathe European Retail Media market was estimated at 9.7 million euros.