of brands claim they are pressured to use the media networks of retailers //

According to a new study, retailers are driving the growth of retail media network (RMNs) brands. The Association of National Advertisers surveyed 88% of companies and found that they are heavily or somewhat influenced by retailers to purchase advertising on their RMNs.

According to an anonymous advertiser, “It’s a power battle right now,” the report titled “Retail Media Networks. A Forced Marriage Or A Perfect Partnership” states that RMNs are a ‘have-to buy’ rather than a want-to buy’ for many marketers.

Deeper: Why retail media networks matter to us

Another advertiser stated that they “play defense as well as offense with retail media network.” He explained that consumers have the option to switch to private label because of rising inflation and economic uncertainty. The retailers also own these labels. We use RMNs as much to build our brands as we do to protect them.

Respondents were also asked to rate their company’s investment in RMNs using a five point scale ranging from “Valuable market tool” to “Cost to do business.” Only 31% of respondents said the latter.

42% of respondents placed RMNs between these extremes. According to the report, “This should concern RMNs and suggests that many brands have active but reluctant buyers.” “RMNs have a lot to prove to marketers their true value.” If they want to be able to compete with other non-RMN marketing platforms and increase their revenue, this will be crucial.

Why we care. If RMNs want to grow, it will not be due to pressure but results. Retailers need to clearly demonstrate the value of media networks with tangible, useful data for metrics. These platforms must be able to drive positive ROAS and incrementality for brands.

RMNs do hold real value. RMNs do provide ROI. This is what MediaRadar shows: Between May 1, 2021 and the end of January the following year, over 235,000 companies purchased RMN ads. This is not possible due to retail pressure. You can see further proof of their worth in the 56% who use five or more RMNs. 40% use five to nine and 16% use ten or more.

52 percent of companies believe that RMNs can be viewed positively as a valuable marketing tool in the near future. Retailers and advertisers are taking steps to make this happen.

Brands claim that they are conducting the calibration and testing necessary to optimize activation and performance of RMNs in line with business objectives and KPIs. Companies expect this to be possible through measurement standardization and transparency by RMNs.

Advertisers can check a lot of boxes with RMNs. One advertiser who was interviewed for the study said that RMNs have been a foundational part of integrated marketing plans.

Download the complete ANA report.

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