Retail Media’s Rise to the Top
By 2025, Retail Media’s revenue is expected to surpass TV’s, including CTV, according to GroupM’s TYNY study. This milestone marks a new era in advertising.
What’s driving this growth? For starters, retailers know their customers better than individual brands. By selling a wide range of products, they’ve got a treasure trove of 1st party data. This data isn’t just a goldmine for brands that sell their products in stores. Other companies can use it to target specific audiences too.
A financial firm, for example, can reach someone who’s been eyeing a high-end bike on a retailer’s website. A car brand can show family cars to people who’ve bought baby products. The possibilities are endless, and advertisers can test and learn as they go.
Personalization Takes Center Stage
This 1st party data also enables a new level of personalization – hyperpersonalization. Retailers can tailor their messages to individual users, driving engagement, conversion, and profitability.
The industry knows data is key, and companies are popping up to help optimize and exploit it. Data clean rooms, for instance, let brands collaborate on data analysis while respecting user privacy. This is crucial, not just legally but ethically and strategically.
The Challenge Ahead
While progress has been made, the next big challenge is omnichannel retailing. Combining online and offline worlds is still a work in progress. Despite the complexity, the sector’s rapid growth and innovation give reason to be optimistic. Converging online and offline data promises to unlock even more potential for personalization and advertising effectiveness, cementing Retail Media’s position as the dominant advertising channel in the digital age.