2023 Recap: Top 5 Retail Media Industry Highlights

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Now that we are entering 2024 let’s recap the top five retail media industry highlights you should know.

These play a pivotal role in the development of this industry. So let’s get started.

What Is The Retail Media Industry?

The retail media industry indicates the sector in which retailers focus on monetizing their digital shelf space.

Do you know how?

By offering unique advertising opportunities to brands, businesses, and advertisers.

In simple terms, it refers to retailers who know how to use online platforms such as websites, social media, apps, and other platforms to sell advertising space to businesses. Specifically those who want to promote their services or products. It’s a targeted form of advertising based on customers’ behavior, purchases, and preferences.

Here are some key aspects of the retail media industry that you should know. It’ll help you get a better understanding of the retail media industry highlights of 2023.

• Digital Shelf Space: Retailers leverage their online platforms for advertising opportunities.
• Advertising Opportunities: Brands can showcase products/services through digital formats like sponsored listings or display ads.
• Revenue Generation: Retailers earn revenue by charging brands for ad placements on digital platforms.
• Enhanced Customer Experience: Retail media can improve customer experience with personalized recommendations.
• Data-driven Targeting: Utilization of consumer data for precise and targeted advertising.

Top 5 Retail Media Industry Highlights

Now that you have a clear idea of the retail media industry is. Let’s discuss the highlights from 2023 in detail.

1. Increase In Usage Of First-Party Data

Whenever you click on Google’s website, the first thing they usually offer you is cookies. These cookies are a form of third-party data. They have been greatly used, but in 2023, things started to change.

The star of the show wasn’t third-party data anymore. Instead, first-party data became more popular.

According to Projections, there will be around a 23% increase in retail media ad spending in the upcoming year (2024). It’s expected to reach $55 billion.

So, how did retail media ads and first-party data connect?

The high demand for first-party data is combined with retail-specific ad opportunities. This results in effective and data-driven strategies for the retail industry growth in revenue.

2. Specific Guidelines For Retail Media Measurement

One of the most difficult tasks for marketers is finding retail media networks. There’s a lack of standardized measurement standards, which creates a huge growth barrier. Marketers have faced a lot of issues because of this.

But on September 13, all of this changed. Two major organizations introduced the first-ever proper Retail Media Measurement Guidelines. It was introduced by:

• Interactive Advertising Bureau
• Media Rating Council

But is it really important?

Yes.

This step made it crucial to streamline retail media measurements. Not only this, it addresses critical pain points and factors for advertisers and retailers.

3. Figuring The iOS14 Disruption

After Apple’s iOS14 launch, seeking visibility has become an important part of the process. Some vital signals and signs for conversions are noted in the ad spend assessment.

It was hard to do all of this. But retail media helped a lot in that. It brought customers much closer to the purchase points. Do you think that’s all?

No.

It seals the attribution loop and provides you with authentic data you must know about your ad spending returns. As a result, marketers and brand advertisers gain access to insights to strategize and experiment with methods to maximize marketing ROI.

It’s also noted that off-site ads perform much better than independent platforms such as Meta and Google.

4. Focusing On In-Store Ads

Do you think that in-store ads are not beneficial?

Here’s the truth.

You need to look around yourself. In Walmart, more than 139 million customers do in-store shopping. Meanwhile, Target completes 95% of digital or in-store orders from their stores.

So, in retail media, in-store is of extreme importance.

That’s why retailers like Kroger are already focusing on leveling up their game. They are putting digital smart screens in aisles that are cooler across many of their stores. Meanwhile, Target is already providing in-store demos and giveaways. It’s also noted in the recent Barbie event. It was with Mattel in around 200 stores.

So, what’s the highlight of this?

It’s that in-store retail media is not about just shopping. Instead, it’s about providing customers with a personalized and immersive advertising experience.

5. Don’t Forget To To Online Advertising Campaigns

Most retail businesses fail because they are not quick to notice this industry’s ever-changing biggest trends and strategies. In 2023, businesses focused on both online and in-store experiences.

Yes.

That’s why they have introduced many unique practices that catch the attention of their customers and become popular. Some of them are:

• BOPIS (Buy Online, Pick Up In-Store): Combines online and in-store shopping. Customers purchase items online and collect them from a physical store.
• Click and Collect (C&C): Similar to BOPIS, customers order online. They collect the items at a designated location, often a store or pickup point.
• Curbside Pickup: A subset of BOPIS and C&C. Customers remain in their vehicles; items are brought to the curbside.

But what’s the goal behind all of this?

It’s first to take users to online stores and then encourage them to visit physical stores. If you have the right tools, you can analyze how your online campaigns impact in-store traffic and purchases.

But for this, you should understand how your online advertising strategies and efforts impact in-store customer behavior. Having complete knowledge of your customers, from online advertisements to in-store purchases and push notifications to billboards, all help you create advertisements that yield better results for your business.

Ending Thoughts

By knowing these retail media industry highlights, you can create an effective strategy in 2024 for your business. It’s all because of approaches that prioritize customers.

Customers >>> Anything else.

If you know what your customer wants and how you can provide it, all the other steps become much easier. As a retailer, you should use these marketing strategies in the favor of your customers.

These highlights also tell us how promising the future of the retail media industry is. It’s a constantly evolving field that provides opportunities to connect marketers, advertisers, and retailers.

It allows retailers to sell products directly to consumers and capitalize on their digital presence by providing a platform for targeted advertising.