What's Happening?
The marketing landscape is evolving with the rise of underserved channels such as retail media networks (RMNs) and sports sponsorships. According to Coresight Research, the global RMN market is projected to grow from $179.5 billion in 2025 to $257.3 billion by 2028. RMNs, which are advertising platforms owned by retailers, offer significant returns on investment, particularly in the beauty and fashion sectors. Meanwhile, the sports sponsorship market is expected to expand from $63.1 billion in 2021 to $109.1 billion by 2030, as reported by PwC. These channels, along with influencer partnerships and community-centric platforms, are gaining traction due to their potential for high returns and cultural relevance. However, challenges remain in measuring their effectiveness and ensuring quality data.
Why It's Important?
The growth of RMNs and sports sponsorships highlights a shift in marketing strategies towards more targeted and accountable advertising methods. This trend is significant for industries like fashion and beauty, where RMNs can offer up to 30% higher ROI compared to traditional channels. The ability to measure and optimize these channels is crucial for brands seeking to maximize their marketing investments. As traditional media becomes more fragmented, these emerging channels provide new opportunities for brands to engage with consumers in meaningful ways. The success of these strategies could lead to broader adoption across various sectors, impacting how companies allocate their marketing budgets.
What's Next?
As these marketing channels continue to grow, companies will need to develop holistic measurement approaches to accurately assess their impact. This includes aligning teams around key performance indicators and integrating brand health metrics across the marketing funnel. The focus will be on creating a universal language for performance that considers natural demand, competition, and market dynamics. Brands that successfully navigate these challenges will be better positioned to leverage the full potential of RMNs and sports sponsorships, driving long-term growth and brand loyalty.
Beyond the Headlines
The rise of these marketing channels also raises questions about data privacy and consumer trust. As brands collect more data to measure the effectiveness of their campaigns, they must ensure that consumer privacy is protected. Additionally, the reliance on digital platforms for advertising could lead to increased scrutiny from regulators concerned about monopolistic practices and data security. Brands will need to balance the benefits of these channels with ethical considerations to maintain consumer trust and comply with evolving regulations.
