Retail Media Growth Around The World

No two words have dominated the marketing in 2023 more than ‘retail media.’ This year has been a banner year for this media channel with the emergence of several retail media networks and technologies.?

In this edition of Relevantly Yours, we track the growth of this media channel across the globe and some of the challenges retailers and brands alike are facing.

Retail Media Growth Trends From Around The World

Although the US leads the way with investment in retail media, the other parts of the world are not too far behind. Take a look at some of the trends from around the globe:

Common Commerce Media Challenges Facing Brands

What are some of the common challenges brands face with this new media format? We take a look at some of these below and the technology brands need to overcome these challenges:

1. Lack of standardization across platforms

According to a survey of US marketers by the Association of National Advertisers (ANA), 82% of respondents mentioned the lack of standardization across platforms as their biggest pain point. The emergence of multiple retail media networks means brands have to contend with many different creative formats, delivery interfaces, measurement methods, and attribution capabilities. Unlike the rest of the digital ad work, retail media lacks a standardized approach to formats and measurements such as the ones documented by the Interactive Advertising Bureau. The lack of standardisation also makes it difficult for retailers to scale their platforms across advertisers.

2. Creative Relevance?

According to McKinsey, 71% of consumers expect companies to deliver personalized interaction and 76%? get frustrated when this doesn’t happen. While access to a gold mine of first-party is one of retail media’s core strengths, advertisers need to be able to use this data effectively to showcase the most relevant products to customers at the right time. To achieve relevance, retailers need to offer the capability to optimize creatives and recommend products that would appeal to advertisers. Often such capabilities require the use of artificial intelligence.

3. Real-time Measurement

Driving conversions is the primary goal of most brands using retail media. Access to real-time campaign data is critical to driving high-performance campaigns. This can get challenging when a brand uses multiple retail media networks and performance data is scattered across multiple platforms. 59% of marketers identified the timeliness of data as a challenge of retail media.?

Going Beyond Retail Media To Commerce Media

While retail media focuses on advertising on retailers’ websites and apps, commerce media goes beyond retailers to a broad network of publishers across the open internet. It allows non-retail and non-endemic advertisers to engage with consumers through first-party commerce data. As a result, a number of platforms have emerged to empower brands to tap into commerce media and overcome the challenges they commonly face with this media format. What should brands look for while seeking the right platform? Read more in our blog, The Technology Powering Retail Media.

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