What's Happening?
A recent study conducted by Koddi in partnership with RetailX reveals that 94% of advertisers prefer unified retail media buying solutions that allow activation across onsite, offsite, and instore platforms. The study highlights the growing importance of retailer-owned first-party data in media buying decisions. Advertisers are increasingly investing in offsite channels, with social media, video, and connected TV (CTV) gaining traction. The report also identifies measurement and attribution as key challenges, with 39% of advertisers struggling to compare results across platforms. The demand for curated deals combining retailer data with premium publisher inventory is also high.
Why It's Important?
The findings underscore a significant shift in the advertising landscape, where retailers are emerging as key players in media buying by leveraging their first-party data. This trend reflects the growing importance of data-driven marketing strategies and the need for integrated solutions that can manage campaigns across multiple channels. The demand for unified media buying solutions indicates a move towards more efficient and effective advertising strategies, which could lead to increased competition among retailers to capture advertising spend. The focus on measurement and attribution highlights the ongoing challenge of proving the effectiveness of advertising investments.
What's Next?
Retailers are likely to continue evolving into omnichannel media hubs, offering comprehensive solutions that integrate onsite, offsite, and instore channels. As advertisers seek to expand their reach, retailers will need to provide robust measurement and attribution capabilities to remain competitive. The development of full-stack solutions that can manage campaigns across channels will be crucial for retailers aiming to capture a larger share of advertising budgets. The study's findings may prompt retailers to invest in technology and partnerships that enhance their media buying capabilities.
Beyond the Headlines
The shift towards retailer-led media buying solutions reflects broader changes in the advertising industry, where data privacy and consumer trust are becoming increasingly important. Retailers' ability to leverage first-party data responsibly will be critical in maintaining consumer trust and compliance with data protection regulations. The demand for curated deals suggests a growing interest in personalized advertising experiences, which could lead to more targeted and relevant marketing strategies.
