Retail Media - When your grocer is peddling your data also!

Retail media - Advertising opportunity provided by retail outlets through their website, PoS displays, apps etc. - added more than US $10 billion in revenue, up 9.8 percent, totaling an estimated $119.4 billion in spend. That is about 13% of the total global ad spend. Retail media is forecast to expand another 8.3 percent in 2024. Retail Media is the next big thing only second to Generative AI, in digital advertising.

According Statista in 2023, Amazon reported 46.9 billion U.S. dollars in revenue generated through advertising sales worldwide. Advertisers can now reach consumers through in-store platforms provided by retailers like DICK's Sporting Goods, Walmart Connect, and Instacart.

Through retail media, advertisers can now reach customer segments who are often in the final stages of their purchasing journey. Retailers possess years of valuable demographic and psychographic data, derived from customers' shopping habits and store visits, which enables them to target these micro-segments effectively.

While the online channels have been an attractive options retailers are also ramping up media presence within the stores. Retailers have installed a variety of in-store media, such as video screens in aisles, on shelves, and on endcaps, as well as audio and physical displays. There is no way you are missing that TV screen in Target or Kroger.

Retail media is diverting ad dollars from the TV and print media which has seen continued decline in media spend.

Retail media is also a higher margin revenue stream for the retailers, what with the ability to predict better RoAS and provide attributions with the tech getting better by the day.

In summary, those seemingly useless 'not for sale' TVs playing ads might actually be generating revenue for retailers capitalizing on the increased foot traffic and while leading them on to a closure.

Andreas Reiffen Ashye Marcus Joshua Goodman Flavilla Fongang Mike Follett Eric Wei Hannah Williams Rion Harmon

#retailmedia

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