Hy-Vee, Albertsons and Ahold Delhaize USA executives shed light on the burgeoning retail media market and the opportunities for their companies and the grocery industry.
Aside from artificial intelligence, perhaps no topic generated as much buzz among Groceryshop 2023 speakers and attendees as retail media.
Over the last several years, elevated digital engagement by consumers has swayed grocery retailers to boost their retail media capabilities to make it easier for CPG partners to reach customers across their online and brick-and-mortar properties with brand marketing. The prize: a robust alternative revenue stream to hoist profits and help fund key e-commerce, technology and business investments.
Just a sampling of grocery retailers upping their retail media game recently include Hy-Vee, Albertsons Cos., Ahold Delhaize USA, The Kroger Co. and Giant Eagle, among others. At Groceryshop, held last week in Las Vegas, Hy-Vee perhaps made the biggest splash with the official launch of its own retail media network, called Hy-Vee RedMedia.
Retail media growth has taken off in the past few years. EMarketer estimated that U.S. digital retail media ad spending jumped 57.3% from $13.23 billion in the 2019 pre-pandemic period to $20.81 billion in 2020, surged another 49.3% to $31.06 billion in 2021 and then climbed 31.4% to $40.81 billion in 2022. The e-commerce researcher projects the nation’s digital retail media ad expenditures to rise 25.8% to $51.36 billion for 2023 and increase a further 19.3% to $61.15 billion for 2024.
Across that five-year time span, retail media’s share of digital ad spending is slated to grow from 10% in 2019 to 19.1% in 2024, according to eMarketer.