He retail media continues to grow and more and more retailers are launching their Retail Media networks. However, despite its rapid rebound, currently, the sector does not have agreed measurement protocols, nor a framework in the works, which makes it difficult to measure the effectiveness of the ads on the network. Given this scenario, Soumya Donkada, Unilever’s director of digital, media and e-commerce for beauty brandsin an interview with Business Insiderhas reaffirmed the company’s intent to find a post-third party cookie measurement solution and has called for a set of measurement standards to help advertisers in this new discipline.
Last year 2022, Unilever threw the ‘Digital Responsibility Framework’ using their learnings from advertising on technology platforms to measure digital ads. Part of the appeal of launching a Retail Media Network is the first-hand data that retailers can tap into for advertisers, which, according to Insider Intelligence, “could be devalued if shared with competitors.” In this line, Unilever has argued that “ad spend will increase if a list of standards is created”.
as forecast Insider Intelligencehe advertising spending in retail media in the United States will grow from 37.390 million dollars in 2022 to 55.350 million dollars by 2024. Globally, according to GroupM, Retail Media reached an investment of 101,000 million dollars in 2022, 15% more than the 88,000 million dollars registered in 2021. This investment volume represents 18% of the total budget allocated to digital advertising and 11% of the total ad spend globally. Or the equivalent of 1.8% of global ecommerce Gross Merchandise Volume (GMV). In the next five years, they estimate that advertising investment in Retail Media will exceed 160,000 million dollarswhich represents a growth rate of 60%.
Furthermore, as the report revealed ‘The Marketer’s Toolkit 2023: Future of Media’ of WARCwhich forecasts a $90 billion slowdown in digital ad spending, the retail media is positioned as one of the most attractive proposals for advertisers this 2023.
Amazon, Alibaba and Walmart, among the main players
The figures forecast that the market for retail media It will be increasingly crowded in the coming years. For years, the Google and Meta duopoly has dominated digital advertising. However, it seems that his reign is coming to an end. Google and Meta are expected to account for just 15.8% of net growth in digital ad spending this year, up from 79.5% in 2015.
The forecasts indicate that Amazon will continue to visibly dominate the Retail Media landscape earning $5.48 billion in net ad revenue next year. Figure that will far exceed that of Meta (2,660 million dollars) and Google (2,070 million dollars). However, new players like Walmart, Alibaba, Kroger, Target and instacartamong others, will also experience positive growth.
