What's Happening?
Digital retail media is increasingly becoming a pivotal element in the strategies of consumer brands and retailers. According to a study by ISBA and MediaSense, retail media now accounts for 10% of all media spend in the UK, excluding Amazon. This growth necessitates a reevaluation of how retail media integrates with brand, trade, shopper, and digital marketing teams. The study highlights the importance of breaking down silos between these teams and aligning them with commercial and finance departments to maximize opportunities in digital retail media. The report outlines key strategies for brands, including merging commercial and marketing teams, developing clear governance structures, and establishing partnerships with retail media platforms.
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Why It's Important?
The integration of digital retail media into broader marketing and commercial strategies is crucial for brands aiming to maintain competitiveness in a rapidly evolving market. By breaking down silos and fostering collaboration between marketing, commercial, and finance teams, brands can enhance their demand generation and sales efforts. This shift is expected to lead to more effective use of media spend, improved brand equity, and increased short-term and long-term sales. As retail media platforms become more sophisticated, brands that successfully navigate these changes stand to gain significant advantages in audience engagement and market reach.
What's Next?
Brands and retailers are expected to continue experimenting with digital retail media strategies, focusing on aligning their media spend with business objectives. The ISBA-MediaSense study suggests that brands should develop outcome-focused measurement frameworks to assess the effectiveness of their digital retail media investments. Additionally, partnerships with retail media platforms will need to be negotiated with an emphasis on scale, value, and maturity. As the retail media landscape evolves, brands will need to adapt their strategies to leverage new opportunities and maintain their competitive edge.
Beyond the Headlines
The shift towards integrated digital retail media strategies may lead to a cultural change within organizations, requiring a move away from traditional siloed approaches. This transformation could foster greater collaboration and innovation across departments, ultimately driving more effective marketing and sales strategies. Furthermore, as retail media platforms mature, there may be increased pressure on brands to standardize their approaches to inventory and data management, ensuring consistent and measurable outcomes.
