It’s no surprise that Retail Media is growing faster than almost any other form of ad spend, with a growth of 22% this last year alone. The adoption of retail media has gained extra momentum in the past few years by the continuing deprecation of third-party cookie tracking, and more stringent privacy frameworks. Since first-party data powers these media networks, more and more advertisers are shifting or adding investment into this highly sought after data. 

Retail media will make up one-fifth of worldwide digital ad spend this year according to eMarketer. It is going to be the fastest growing ad channel across media through 2027, growing by more than 20% each year, according to their forecast. The biggest player in the space is Amazon, accounting for 74% of retail media ad spend in the US. However, Amazon is losing share as more and more networks become available, while existing ones broaden their capabilities. Despite this, it is projected that Amazon will continue to be the biggest player in the space for the foreseeable future. Right behind Amazon is Walmart. Between this year and 2025, Walmart will double its ad business from $3.19 billion to $6.18 billion, according to eMarketer’s forecast.

As many people are already aware of some of these larger players, it may not be as widely known how quickly new networks are popping up in the space. As of this year, there are already over 200 Retail Media Networks (RMNs) available. Which brings us to our anticipation of the future of Retail Media: consolidation. As reported on Grocery Dive, United Natural Foods, Inc. (UNFI) debuted UNFI Media Network in May – which aims to consolidate regional and independent grocers media networks into one single platform.  Retail Media is just one portion of an advertiser’s media investment. It’s not efficient to have to invest across several networks at the same time. Additionally, there is an overall lack of consistent measurement and standard ad formats across these networks. This is causing a lot of fragmentation in media buying and brand measurement for advertisers. The increased attention means increased pressure to demonstrate impact, which is a hot topic that’s still developing.

All in all, we believe that Retail Media is a valuable ad channel for brands to invest in and we don’t see it slowing down any time soon. We are reaching a tipping point with an endless amount of networks available with inconsistent capabilities across them, which we believe will ultimately drive consolidation and standardization in the space. Ultimately, success in the retail media landscape will hinge on networks’ ability to collaborate and deliver the data and insights brands need to make informed decisions and achieve their marketing objectives.

We are excited to stay at the forefront of Retail Media and will continue to engage in these conversations with our partners. Want to ask a question or learn more? Get in touch with us today.