Retail media has rapidly evolved into a $150bn industry, driven by the increasing value of first-party consumer data. With online privacy restrictions tightening, advertisers are turning to retailers who own the full customer journey, allowing for precise targeting and direct attribution of sales impact. Retail media’s meteoric rise shows no signs of slowing, with projections indicating it will surpass the value of traditional and connected TV advertising combined within the next four years.
Travis Lusk, Group Director of Client Success and Growth for Ebiquity North America, highlights the significant cost implications of retail media investments, explaining that retailers incorporate a data fee into their CPMs, which “accounts for up to a quarter of the total CPM cost.”
Despite its effectiveness, managing retail media budgets is proving to be a challenge for many brands, as it spans multiple functions within an organisation, from shopper marketing to brand and ecommerce teams. Lusk notes that brands struggle with internal coordination:
Brand CMOs and CEOs say they want all that spend and investment to be coordinated and work together and not be in these silos—it’s just not there yet“.
Travis Lusk, Group Director of Client Success and Growth for Ebiquity North America
As retail media continues to expand, so do the complexities of execution. With over 220 retail media networks worldwide, many brands find themselves working across more than 20 different platforms. This fragmentation creates operational inefficiencies, with consolidation efforts proving difficult due to retailers’ desire to protect their proprietary data. However, as Lusk points out, without restructuring and better collaboration, brands risk inefficiencies in their media investments.
For a deeper dive into how brands can optimise their retail media strategy, read the full article on Campaign here.
Explore the key challenges and opportunities in retail media by reading The Four Big Questions Retail Media Needs to Answer here.
To understand how to navigate this evolving landscape effectively, download Ebiquity’s Retail Media Guide here.
