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 increased investment include a lack of infrastructure, measurement capabilities, and scalable cross-channel execution. Despite these challenges, RMNs are recognized for their precision targeting and contextual relevance, which are appealing to advertising executives. The report highlights the rapid growth and potential of retail media, noting that the sector is undergoing significant changes, such as the expansion of shoppable ads across CTV, display, and video, projected to grow from 5% to 18% of RMN investment by 2026.
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Why It's Important?
The findings underscore the strategic importance of retail media in the advertising landscape, offering brands a unique opportunity to connect with consumers through precision targeting and closed-loop measurement. However, the current infrastructure limitations and internal agency dynamics are hindering the full adoption of retail media strategies. As retail media continues to evolve, it presents significant opportunities for brands to enhance their advertising efforts and achieve full-funnel marketing goals. The anticipated growth in shoppable ads indicates a shift towards more integrated and seamless consumer experiences, potentially transforming how brands engage with their audiences.
What's Next?
The retail media sector is expected to mature rapidly, with major trends driving improvements in infrastructure and measurement standardization. As RMNs expand their offerings to include more offsite media buying and solutions for non-endemic brands, the industry is likely to see increased investment and adoption. The entrance of commerce media networks from adjacent sectors, such as travel and services, may further accelerate the breakdown of silos and enhance the ecosystem. Agencies and brands are poised to capitalize on these developments, with a focus on creating smooth and effective advertising experiences.
