We break down everything you need to know to unlock retail media revenue and build a successful retail media ecosystem.
If retail media isn't on your radar yet, it's time to start paying attention. As retailers expand their online presence and enhance their in-store experiences to better connect with consumers, many are exploring streaming and media collaborations, formulating commerce media strategies, and looking for ways to maximize ad placements across all platforms.
And, the numbers speak for themselves. According to eMarketer, US omnichannel retail media ad spend will grow 29% Y-o-Y to hit a total of $59.98 billion this year. Globally, it is predicted to reach $140 billion in 2024.
In the US alone Amazon maintains a dominant position, controlling 75% of the retail media market. However, notable shifts can be seen in the way advertisers are allocating budgets. Nearly 1 in 5 ad dollars spent in the US this year are now being spent on retail media. And, with more tech providers entering the space, the trend is also being reflected globally.
By leveraging valuable first-party data, retailers can identify consumer shopping patterns and uncover valuable indications of future purchase intent based on prior transactions. As an example, a shopper purchasing organic food is highly likely to purchase other health and wellness-related items, creating opportunities for a variety of brands. And, because top retailers have millions of active profiles, the potential for reach is huge.
Brands sell their products to retailers and fall into one of two categories:
Retailers sell their products to shoppers via in-store or digital channels. They can collect data from customers through a range of channels including:
Anyone who purchases a product or service from a retailer.
Commerce media is the umbrella term used to describe both on-site and off-site advertising. Depending on your goals, you can leverage the two separately or in combination.
On-site ad placement referes to advertisements placed on a retailer's owned digital properties. Let's say a retailer operates an online store showcasing their own inventory. Alongside the products they're offering to consumers, the website strategically incorporates highly visible ad placements, essentially making the retailer a publisher.
They are highly valuable for captive brands because they allow retailers to effectively monetize their digital presence to capitalize on advertising opportunities while serving the needs of their consumers.
Benefits include:
Off-site placements help retailers advertise outside of their scope and connect with new audiences. Owned data can be used to identify and target individuals across the Open Web. Retailers can buy space and promote their products and services through display, video, CTV, and other formats on platforms outside their owned channels to connect with their target audience.
Retailers can also leverage their first-party data to build advanced audiences and monetize their data across an even broader online landscape.
Benefits include:
With all momentum around retail media, now is the time to focus on how to build a successful strategy to help you deliver value and connect with consumers. Whether you're building upon an existing foundation, or just getting started, our SSP offers global demand with high-quality reach to maximize the impact of your campaigns and connect with diverse audiences.
Our team of retail media specialists can help you leverage our flexible on- and off-site monetization solutions to connect effortlessly with your consumers at any point in the customer journey. Additionally, our integrated analytics and reporting tools offer valuable insights into customer behavior and campaign performance, ensuring you can make data-driven decisions to boost customer satisfaction and revenue growth.
A Product Marketing Associate in our Paris office, Arina supports the product marketing team focused on supply and emerging channels. In addition, she is currently pursuing a Master’s Degree in Digital Marketing.
