I recently had the pleasure of attending the Path to Purchase Institute’s annual Retail Media Summit in Chicago. This 3-day event is designed to help CPG brands and retailers navigate the constantly shifting and increasingly complicated digital commerce space. There was a lot of great content shared and many insightful conversations had.
Below is a summary of my key takeaways from the event.
#1. The growth potential is huge
Retail Media Networks (RMNs) are a significant part of the future of retail. Although it’s not a new channel, the bulk of its growth has happened over the last few years as consumers shift more of their spending online. Retail Media is now the third-largest digital advertising channel in the U.S. Brands are understandably eager to capitalize on the profitability potential of RMNs. In fact, eMarketer forecasts that U.S. RMNs will exceed $52 billion in advertising sales by 2023. This growth will continue as more retailers embrace RMNs.
#2. Partnerships accelerate progress
As more retailers launch RMNs they become increasingly more sophisticated with their digital advertising efforts. However, there has been a steep learning curve for the retailers that launched RMNs in recent years. With support from their agency and advertising technology partners, retailers have accelerated their progress to better meet the demands of brands, while ultimately providing customers with a more seamless shopping experience.
#3. Data is a competitive advantage
For RMNs to continue on this path of progression, it’s important for them to be transparent with data sharing among their partners. This drives collaboration and ultimately increases efficiencies across targeting strategies and measurement practices. By working closely and openly, RMNs can develop and build lasting trust among partners and suppliers that can best position themselves for increased future investment.
#4. Omnichannel drives opportunity
RMNs offer many opportunities for advertisers to deliver advertisements across multiple channels. The ease of moving between offline and online channels has created a new degree of depth in connecting with customers. Leveraging a multi-channel solution enables advertisers to engage customers across a variety of formats and deliver relevant advertisements during receptive moments.
#5. Dynamic personalization drives success
Dynamically tailoring advertisements at the moment a consumer is known to be receptive will provide a more relevant advertising experience that drives stronger campaign results. Access to this technology will ensure RMNs can deliver the most compelling advertising experience across the appropriate channels to drive performance for brands, but most importantly, it will provide value to customers.
Retail Media is realizing its considerable potential. This potential goes beyond the monetary benefit of driving profit for retailers and brands. It’s ultimately about improving the customer experience.
If you would like to discuss any of these takeaways in more detail, feel free to reach out to me directly at tr@a.ki
Tracy Reimers, Senior Director, Strategic Partnerships at Aki