Home Business Investment in retail media increased 35% in the third quarter

Investment in retail media increased 35% in the third quarter

Global advertising spending will surpass $1 trillion for the first time in 2024

Retail media continues to boom and has already become an important ally for many of the industry’s key players. And it is a strategy that benefits all actors involved: the Retailer They generate additional income that allows them to increase their profits; The Advertisers They improve the reach and conversion of their campaigns thanks to data and the ability to work in real time; and that user They improve their shopping experience with specific offers and complementary products or services that are of interest to them. Actually, More and more advertisers are planning to allocate part of their budget to retail media networks.

According to Skai’s “Q3 2023 Quarterly Trends Report,” investment in retail media increased 10% in the third quarter of the year compared to the second quarter. Compared to the previous year Total investment increased by 35%.

Specific, Retail media impressions increased 6% quarter-on-quarter and 9% year-on-year between July and September. In addition, during the analyzed period, clicks on retail media ads also recorded an increase, with a growth of 6% compared to the second quarter of this year and 9% compared to the third quarter of 2022.

On the other hand, the latest data published by the Interactive Advertising Bureau (IAB) in its report “Retail Media 2023: Operational Strategies to Meet the Growth Potential” shows Retail media advertising spending is expected to rise 11% in the U.S. this year. compared to investments last year 2022. Specifically, investments of those who increase their spending on retail media networks are expected to increase by almost 20%.

The larger budget allocated to retail media networks implies a smaller budget for other items. This is where the report reveals that 52% of respondents invest more in retail media than in other digital platforms, including social, search and digital video/CTV, while 36% are withdrawing investments from linear TV, print and outdoor. Among the main reasons for buying: 55% of those surveyed say that they are reaching more and more target groups; 52% use the retailer’s first-party data; 48% want to increase unit performance; and 45% use customer data.

Although the data predicts growth in retail media investment in the coming years, there are still some challenges and obstacles to be overcome. According to the report, One of the top concerns expressed by 69% of respondents is the need to eliminate complexity in the purchasing processfollowed by the lack of measurement standards (62%) and the demand for more transparency (60%).

Similarly, another report from Group M suggests that this is to be expected Investments in retail media will reach $160 million (147.4 million euros) by 2027.. Retail media spending accounted for 18% of digital advertising and 11% of all advertising investments in 2022.

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