The Rise of Retail Media Networks
This IDC Perspective discusses the rise of retail media networks. Recent growth in ecommerce combined with a host of other factors have led to retailers introducing a new digital advertising channel in the form of retail media networks (RMNs). The advertising is designed to support an additional revenue stream and leverage first-party customer data exclusive to retailers. Brands and CPGs have readily jumped on the bandwagon to achieve stronger ad performance, metrics, and successful DTC audience relationships."A confluence of forces drives the rapid adoption of retail media networks," says Ananda Chakravarty, research vice president, IDC Retail Insights Merchandising and Marketing Strategies. "Retailers, brands, CPGs, ad platforms, and agencies are jumping on this train as it steams out of the station, but this new media train will be conducted by retailers that own the data."
Please Note: Extended description available upon request.
- Executive Snapshot
- Situation Overview
- Retail Media Network Structure Mirrors Sell-Side Platforms
- Market Conditions Converge Forcing Brands and Retailers to Adopt RMNs
- Customer Access and Attribution Grow RMN Adoption for Brands
- Brands Seek ROAS and Closed Loop Metrics
- Brands Seek Higher Conversion Through Advertising at the Point of Purchase
- Brands Seek Retailer Customer Information
- Brands Seek Customer Targeting
- Brands Seek an Alternative to Cookies
- Retailers Push for Monetization and Data Accelerates RMN Growth
- Retailers Seek a New Revenue Stream
- Retailers Seek Online Monetization to Justify Ecommerce Budgets
- Retailers Seek to Justify Loyalty and Data Collection Programs with 1P Data
- Retailers Seek Omni-Channel Advertising for In-Store Experiences
- Consumers Provide the Product
- RMNs Are Retail Networks, Not Media Networks
- RMN Constraints Span Merchandising, Commerce, Technology, and Strategy
- Retailers Will Control and Own Customer Data
- Retailers Will Accept Retail Specialized Intermediaries to Maintain Value
- RMNs Will Evolve to an Automated Future State
- Advice for the Technology Buyer
- Learn More
- Related Research
- Synopsis
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