What's Happening?
The marketing landscape is undergoing a transformation as retail media networks prioritize conversion, retail, and activation over traditional creative-centric marketing. This shift is driven by the need
for precision awareness, contextual influence, operational excellence, and closed-loop measurement. Retailers are now focusing on sales lift, incrementality, and basket growth, moving away from impressions and storytelling. This change reflects a power shift towards retailers who control consumer relationships, transactions, and data. The new model emphasizes the importance of conversion infrastructure and activation engines that operate at the point of sale.
Why It's Important?
This shift in marketing strategy has significant implications for brands and agencies. Retail media networks are becoming one of the fastest-growing advertising channels, projected to exceed $60 billion annually in the U.S. alone. Brands that adapt to this new model by integrating brand and performance strategies are likely to succeed. The focus on measurable and optimizable performance channels aligns with the priorities of CFOs, emphasizing the importance of sales over creative storytelling. This transformation challenges agencies to adapt and develop systems that connect brand and performance to remain competitive.
