E-retail sites are gaining popularity as a medium for brand advertising due to the rise of online shopping and eCommerce sales. Retail media may even become essential for publishers and advertisers with the introduction of new privacy rules. The ad tech sector, particularly the retail media industry, will find it difficult to study customer behavior once they interact with an advertisement as third-party cookies slowly disappear. However, a lot of people claim that this problem might be resolved through retail media.
Retail media advertising has the benefit of offering marketing that directly connects ad spending to digital sales. The next phase is to establish networks to provide retail media on a broad scale; estimates indicate that by 2023, US Retail Media Networks will sell more than $52 billion worth of advertising.
Although it would seem at first that the growth of retail media will reduce publisher revenue, the data suggests otherwise.
Because digital advertising was thought to damage the user experience in the past, shops tended to stay away from it. Although many merchants’ opinions were altered by Amazon’s booming ad tech business. About 78% of the $41 million in income from the anticipated 2022 ad spend went to Amazon. Large businesses like Walmart, Target, and Kroger adopted a similar strategy.
First off, first-party data enables advertising that is future-proof. Each retailer in this medium is a distinct individual, and each retailer’s data profile for each consumer is distinct. The new privacy laws have no restrictions on the first-party information linked to these accounts.
The study claims that retail media can track media ROI as well. In essence, it will “bridge the gap” between marketing and sales data. Clean data rooms will be used in the procedure, enabling marketers to get data while complying with privacy rules and being more open.