Predictions: Retail media network //

Digital advertising has taken off in the past two years thanks to retail media networks. Advertisers have the opportunity to reach customers directly because of the close relationship that retailers have with customers. It’s not only big-box stores such as Walmart or Lowe’s that are launching their ad networks. Similar networks have been launched by other non-retail brands, Marriott being one example.

Deeper: Why retail media networks matter to us

What direction will retail media networks take from here? Here are some predictions about where they will be in 2023.

Retail media networks standardize

Retail media networks are each their own private gardens. Advertisers must start from scratch to measure the effectiveness of campaigns across all networks. It is likely that 2023 will see greater standardization.

Rachel Tipograph (founder and CEO of ecommerce platform MikMak) stated that retail media is growing in power and seeing the benefits of the cookieless Internet. This has a significant impact on social platforms like Facebook and Twitter. Brands expect accountability in order to achieve all this growth. This is why standardization should be used for measuring ROI. Every day, the industry is focusing on all of these inefficiencies. “I believe that 2023 will be the year when real action begins.”

Where are the inefficiencies

Tipograph stated that retailers are experiencing growing pains with retail media due to limited supply.

Better reporting for retail media networks

Even if there is no standardization among networks, RMNs can improve their reporting and measurement capabilities over the next year.

“Retail media networks can tie ad exposure and purchases with transaction data from both in-stores and in-app,” stated Elizabeth Herbst-Brady (chief revenue officer at Yahoo). “The next step is to use that data in real-time for optimization and decision making.”

Off-site activations, full-funnel extension

In the next year, more advertisers will be expanding the use of RMNs. Advertisers will be attracted to retailers whose on-site properties (digital or physical) are attracting advertisers.

Herbst-Brady stated that “Retail media networks were a hot accessory for major retailers this past year and opened up new and significant revenue opportunities.” “While Retail will likely hit a saturation point by 2023, other verticals such as Travel and Auto will start to grow, and off-site activations may gain popularity as the on-site market matures.”

She said, “Further Retail and other vertical media network will begin to approach strategy in a full-funnel mode — activating against lower funnels, while expanding branding and awareness opportunities, to drive loyalty, and value, for consumers.”

CTV will take the retail media network playbook

Walgreens is a retailer that has a large customer base and many digital touchpoints. They also have lots of customer data. Customers can interact with the retailer via the app and take a variety of actions, without ever having to visit a physical store.

Is a retail media network any different from a streaming app with a similar audience?

“Imitation is the greatest form of flattery and retail media networks should make a positive shade as CTV takes a leaf out of the former,” Hunter Terry, VP solutions consultant and CTV commercial lead data management and identity company Lotame, said. Every streaming service will try to create their own platform. Why? Because networks have the data. LG is an example. They can either sell their inventory on LG TVs, or they can send the data to other CTV devices. Anybody with customer data can package it and make it available for sale — much like a retail media company.

The post 2023 Predictions : Retail media networks was first published on MarTech.