Study Shows U.S. Retailers’ Shift Towards Customer-Centric Retail Media Networks

Getting closer to their own customers was key for 41% of retailers when evolving their Retail Media Network (RMN) capabilities, the latest research from ADvendio, the leading omnichannel advertising solution provider, has shown.

Original research of over 50 senior U.S. retailers, spanning ecommerce, marketing and retail media professionals revealed that, despite the sizable revenue opportunities presented by RMNs — tipped to reach $124billion this year — customer connection and engagement proved key motivators for retailers in evolving their RMNs.

Article Highlights

• Getting closer to their own customers was the top consideration for 41% of retailers, followed by 39% who wanted to leverage RMNs to enhance CX for existing customers. 39% wanted to use retail media as a new engagement channel for their shopper audiences. This compares to 35% who wanted to use RMNs to drive additional revenue streams.
• 20% of U.S. retailers pointed to Google’s ‘cookie cull’ and cookie depreciation prompted RMN investment. 45% said they had turned to RMNs as return on investment (ROI) on traditional ad channels or on social media had diminished. 24% said paid ads on search and social had now become too expensive, prompting them to invest in RMNs.
• 33% of retailers say they have seen better engagement rates through RMNs compared to social media ads and 31% have seen better conversion rates via retail media compared to paid search campaigns.
• When it comes to targeting traditional ad spend for RMN investment, 67% of retailers offering RMN services are going after search or PPC budgets. This was followed by Facebook ad spend and traditional online advertising dollars (both 45%), as well as TV advertising budgets (37%).
• 61% of the retailers polled by ADvendio regard in-store retail media advertising as a linear place for traditional TV advertising budgets to go.

Read the full article here: www.chaindrugreview.com

Originally posted on ADvendio.com on 17th April 2024