Retail media boom time …
Although consumer spending has declined, retail media networks have emerged as a powerful B2B revenue driver.
RETAILERS grow their top line
BRANDS advertise their products as consumers shop
BOTH gain deeper insights into consumer habits and patterns
To kick off this new series on retail’s marketing evolution, here’s a market overview of why retail media networks are fuelling retail growth and which players to watch.
What are retail media networks? Retailers’ owned digital media (website, apps and other digital properties) act like advertising real estate, allowing brands to reach consumers along their shopping journey.
U.S. retail media ad sales will reach $40 billion (and $50 billion globally) in 2022, Forrester predicts.
MARKET GROWTH RATE
According to Bain & Company, the U.S. retail media market will grow 25% annually over the next 5 years, rising from $36 billion in 2021 to an estimated $110 billion in 2026.
“Retail media networks
have turned retailers into ad moguls.”
Amazon, Walmart, Kroger, Target, Instacart, Albertsons, Sam’s Club, Dollar General, Costco, Walgreens, Meijer, CVS, Best Buy, Ahold Delhaize, The Home Depot, Shipt, H-E-B, Gopuff, Michael’s, Nordstrom, Ulta, Macy’s, Dick’s Sporting Goods
Tesco, Boots, Carrefour, Sephora, Douglas, Bol.com, Mercado Libre, Falabella
BENEFITS FOR RETAILERS
Top line growth, thanks to new B2B sources of revenue
Potential for huge margins of 70% to 90% (!), Bain estimates
Richer consumer data, including shopping habits
BENEFITS FOR BRANDS
Advertise products as consumers shop
Potential to increase conversions
Improved analysis on return on advertising spend
Forrester predicts “brands will increase their existing budgets and shift more budget from search and social media to retail media for better insights and performance.”
What else makes retail media networks so appealing right now?
Stay tuned for the next post in this series on retail’s marketing evolution on TikTok.
E-Commerce Catapults Forward
Retail Revenue Drivers
Bain & Company, Boston Consulting Group (BCG), The Consumer Goods Forum, Forrester, MarTech, Path to Purchase Institute