What Is Retail Media Advertising and How Does it Benefit the Ad Tech Industry?

According to Boston Consulting Group, it is estimated that the retail media market will grow by 25% per year to $100 billion over the next five years and will account for over 25% of total #digitalmedia spending by 2026, rightfully quoted as “The Third Wave of Digital Advertising”. 

Retail media advertising is a form of promotion that uses the retailer’s media inventory, with advertisers paying a platform or marketplace to showcase their products at or near the point of sale. #Retailmediaads can be native ads or display ads that blend seamlessly with the search results and look like another product in the list with a “sponsored” label.

THOUGHT TRAIN

Retail media ads, which are a booming part of the digital media ecosystem, enhance brands’ visibility and influence customers’ experiences while purchasing goods and services. Since third-party cookies are slowly going away, it would be hard for the ad tech industry to track the actions of potential customers. This challenge could be overcome with retail media advertising. 

US digital retail media advertising is surging and is forecasted to jump 53.4% this year to $31.49 billion, representing 14.9% of the digital ad market. As brand dollars follow the big shift to #eCommerce, the US retail media market will grow faster than the total digital ad market, which will grow by 38.3%.

 There are mainly two forms of retail media advertising - onsite and offsite displays and sponsored products. While the online and offsite displays offer their own set of benefits by making it easier for the shopper to find what they need, which benefits both the shopper and the retailer in terms of satisfaction. #Sponsored products are generally the main form used, as they can be placed on a variety of pages on retailer sites such as search results pages, homepages, and product detail pages. The fact that different offers and customer discounts help the retail media network is the cherry on top. This lets the advertisers get hold of first-party opt-in data that is directly linked to the customer experience. Additionally, publishers can access this information from advertisers. 

Amazon's growing ad tech business is a great example of how retailers and publishers can work together for their mutual benefit. Within this section, each retailer is its own unique entity, and #data-driven profile building developed for potential customers is highly targeted. With marketing and sales going hand in hand, this process cleans data rooms and assists in tracking ROI on media while obtaining data and abiding by privacy laws. 

QUOTE UNQUOTE

"Advertising is never done. It is about perpetual motion. We must continue to innovate every day."

VDO.AI is a global advertising technology innovator, that provides brands with unique customer-focused advertising solutions. Through personalized and cross-screen targeting, we enable brands to make a big impact and reach people.

Get in touch with us today if you are looking forward to exceeding your advertising objectives and exploring the new world of retail and native advertising.