What's Happening?
A recent survey conducted by Infillion reveals that while 80% of agency executives view retail media as a promising opportunity, only 41% consider it a core part of their media strategy. Retail media networks (RMNs) currently account for just 5% of media budgets among surveyed executives. The primary barriers to adoption include a lack of infrastructure, measurement capabilities, and scalable cross-channel execution. Despite these challenges, RMNs are seen as a strategic and valuable part of many brands' advertising efforts, undergoing rapid change and evolution. The survey involved 58 agency professionals responsible for buying retail media, highlighting the appeal of precision targeting and closed-loop measurement, but also the technical barriers and silos stifling investment.
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Why It's Important?
The findings underscore the rapid growth and potential of retail media, as well as the challenges that need to be addressed for it to become a dedicated part of the advertising mix. Retail media is still in its early stages, with significant interest from agencies and brands eager to leverage its full potential. However, the infrastructure to support full-funnel retail media is lagging, leading to frustration among stakeholders. The entrance of commerce media networks may help break down silos and accelerate the adoption of retail media, offering new opportunities for brands to connect with consumers across various media environments.
What's Next?
As retail media continues to evolve, major trends such as standardized measurement and the expansion of offsite media buying are expected to address current challenges. The growth of commerce media networks, including those launched by companies in sectors like travel and services, may further expand the ecosystem and accelerate the breakdown of silos. Additionally, the emergence of shoppable ads across CTV, display, and video is projected to grow significantly, offering new value across the advertising funnel.
