Retail Media: Is the party over?

Remember that dollar flush feeling in 2021 when everyone was throwing money at retail media networks like confetti? Yeah, me neither.

The truth is, whispers of retail media budget freezes are getting louder, and brands are starting to tap the brakes on their spending. Is there a sudden shift and how much of this is actually true?

There’s no sudden shift - Retail Media was never a standalone bucket of ad-spend on the brand side in the first place, it was a combination of multiple budgets like Trade, Shopper and Brand Marketing.

As we’re now exhausting trade and shopping marketing spends and starting to tap into brand budgets, the budget holders are asking more questions. Why?

Here's why:

• Economic uncertainty: Inflation's a buzzkill, and brands are tightening their belts across the board. Every dollar counts, and retail media needs to prove its ROI harder than ever.
• Performance pressure: The honeymoon phase is over. Brands are demanding demonstrable results, not just reach and impressions. It's time for retail media to deliver on conversion but a lot of us are still feeling insecure about traffic volumes.
• Measurement mess: We all know data is king, but retail media measurement is still the Wild West. Attributing sales to specific ad placements is tricky, and brands are getting impatient. They want to see clear results, not just pretty dashboards. Every retailer is doing it their own way, making it difficult for brands to compare the performance across retail media networks.
• Fragmentation fatigue: New retail media networks pop up like mushrooms after rain. Managing campaigns across dozens of platforms is a logistical nightmare, and brands are craving simplicity.

So, is retail media doomed? Not necessarily, but it is facing a reality check. In my view, here's what needs to happen:

• Standardise measurement: Let's get everyone on the same page with clear metrics and transparent reporting. We need apples-to-apples comparisons, not oranges-to-opossums. The IAB is doing some work here but we still need strong leadership on this.
• Consolidate platforms: Streamline the ad buying process and make it easier for brands to manage campaigns across multiple networks. Less friction, more happy marketers.?
• Innovate, innovate, innovate: Show us the power of retail media beyond basic banner ads. We're talking immersive experiences, fluid and relevant in grind advertising, shoppable livestreams, and data-driven personalization that blows our socks off.?One of the best solutions I've seen here to power this is Crealytics and Andreas Reiffen has been very openly sharing his vision of where we are headed in Retail Media.

Now, having said that, these are all addressable challenges and any industry witnessing hyper-growth does face hurdles. Retail media is still growing. The market is expected to reach $160 billion by 2027, so there's still plenty of pie to share.?

The data advantage remains. First-party purchase data is gold in the cookie-less future, and retailers hold the key. Brands still need this valuable audience reach.

It's time to move beyond the hype and focus on delivering real value for brands and shoppers alike. Maybe then, we can dust off those confetti cannons for a second round.

What do you think? Is retail media facing a reckoning, or is it just a temporary blip? Share your thoughts in the comments!

#retailmedia #marketing #ecommerce #advertising #data #measurement #futureofretail

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