Key Insights from IAB’s Updated Retail Media Guide
August 29, 2024
In today's fast-paced digital landscape, Retail Media has emerged as a game-changer, revolutionizing how brands connect with consumers. The explosion of e-commerce, fueled by a decade of rapid growth, has put Retail Media into the spotlight, marking it as the third wave of digital advertising.
To help businesses navigate this dynamic space, IAB has released an updated version of its Retail Media Guide, providing essential insights for brands looking to harness the power of this growing trend.
The Evolving Landscape of Retail Media
The growth of e-commerce has been nothing short of phenomenal. From 2012 to 2022, the online share of retail trade more than doubled in the UK and more than tripled in Germany, reaching 26.5% and 19.6%, respectively, according to the Centre for Retail Research. As more consumers turn to online platforms for their shopping needs, a wealth of valuable data is generated – data that brands can leverage to precisely target their advertising efforts.
Retail Media, which was once a niche component of the digital advertising ecosystem, has now reached critical mass. According to IAB Europe, Digital Retail Media advertising spend is forecasted to exceed €21bn by 2026. This surge is driven by brands recognizing the immense potential of collaborating with retail partners to engage consumers directly at the point of purchase. With over 90% of advertisers now partnering with retailers, this trend is set to continue growing.
Why Retail Media Matters
Retail Media isn’t just another buzzword – it’s a powerful tool that allows brands to connect with consumers. By leveraging first-party data from retailers, brands can target, optimize, and measure their campaigns with unprecedented precision. This data-driven approach ensures that advertising efforts are efficient and impactful, making Retail Media an indispensable strategy for modern marketers.
One of the key advantages of Retail Media is the ability to advertise at the point of purchase. This, combined with closed-loop attribution, allows brands to track the entire customer journey, from initial interest to final sale. The result? Highly targeted campaigns that deliver measurable results and drive significant growth.
Highlights from the IAB Guide
What is Retail Media?
Retail Media encompasses the advertising space, retail data assets, and in-store opportunities owned by a retailer or marketplace. This includes digital environments both on-site (like a retailer’s website) and off-site (such as external websites or apps), as well as in-store digital displays. For brands, this means a wide array of channels to execute their campaigns.
Why is Retail Media Important?
With the deprecation of third-party cookies, first-party data from retailers has become invaluable. Retail Media allows brands to tap into this data, enabling precise targeting based on actual shopping behavior. This not only enhances brand visibility but also drives engagement across multiple touchpoints, making it easier to connect with consumers where it matters most.
How Can Retail Media Be Bought?
Retail Media offers flexibility in how campaigns are purchased and managed. Brands can opt for managed services, self-service platforms, or programmatic buying through a Demand-Side Platform (DSP). This flexibility allows for tailored campaigns that can adapt to different digital channels and audiences.
How Is Retail Media Measured?
Key metrics for Retail Media include Return on Advertising Spend (ROAS), viewability, fraud prevention, and incremental sales lift. These metrics provide a clear picture of campaign performance, ensuring that advertising efforts are not only effective but also profitable.
Best Practices for Success
Maintain a Continuous On-Site Presence:
Keep your brand top-of-mind by consistently advertising on retail sites.
Implement a Full-Funnel Strategy:
Combine on-site and off-site ads to maximize your reach and impact across the customer journey.
Adapt Your Messaging:
Tailor your campaign messages to fit the context of different retail media touchpoints, enhancing relevance and engagement.
Why Should Brands Care About Retail Media?
Retail Media offers a unique opportunity for brands to reach highly engaged consumers right at the point of purchase. For companies with significant online, app, or physical traffic, leveraging Retail Media can drive sales, boost brand loyalty, and provide invaluable insights into customer behavior. The integration of first-party data ensures that advertising efforts are not only targeted but also measurable, making Retail Media a powerful tool for driving business growth in today’s competitive landscape.
In conclusion, as Retail Media continues to grow, it’s clear that this is a space that no brand can afford to ignore. Whether you’re just starting to explore the possibilities or are looking to refine your existing strategies, IAB’s updated Retail Media Guide is an invaluable resource that will help you stay ahead of the curve and make the most of this exciting advertising frontier.
Do you want to learn more about how we are helping our clients with In-Store Retail Media?
Talk to our Retail Media Strategist, Andreas Lind, today!
