Retail media has been one of the most successful responses to poaching that retailers have ever discovered. After years of watching its market domination eroded by pureplays and other disruptors, retail has recognised the power of its existing assets, both in-store and online. Building from their reward or loyalty schemes, first-party data has turned out to be of the most insightful view of customers that an advertising campaign manager could ever hope to find — and it’s an asset retailers hold, ready-made, in their 1st party customer databases.
- Boston Consulting estimates that the retail media market will grow by 25% per year to $100 billion over the next five years and will account for over 25% of total digital media spending by 2026.
- GroupM predicts global retail media spend will reach $101 billion this year — a 15% increase in just 12 months.
- The closed loop measurement tools enables brands to see true return on spend on new product development, packaging, ranging and campaign effectiveness, currently an average return on ad sped (ROAS) of £6.60 compared to an average of £3.80 on other channels.
- In order to give advertisers flexibility, the Sainsbury’s system enables them to edit campaigns on the fly and be more reactive so they can take advantage of seasonal weather or events. Average conversion rates of 60% to 70% are claimed as well as average ROAS of 300% to 450%.
- ASOS is relying on the added value of Retail Media to deal with a recent loss of £87.4m in the six months to the end of February, compared to a profit of £14.8m in the same period last year.
- In the U.S., Walmart followed Amazon and started its ad business back in 2014. In 2021 alone the figures were huge. $1.55 billion was predicted but it was actually $2.1 billion, up more than 71% year-on-year. In 2022, it grew to $2.7 billion, up 30% on 2021 but still huge growth and now expected to grow by over 40% in 2023.
Read the full article: www.ecommerceage.co.uk