In 2024, it has become abundantly clear that retail media networks (RMNs) are shaping the landscape of digital marketing for retailers. While many players in the retail sector express a keen interest in harnessing the power of RMNs, the reality is that only a handful of industry giants are currently equipped with the infrastructure required to optimize this opportunity.
Leading the charge is Amazon, which reported a staggering $14.3 billion in revenue from its advertising business in its latest fiscal quarter ending September 30. This marks an impressive 18.8% increase in year-over-year revenue, underscoring tantalizing prospects for brands looking to market their products through Amazon’s capabilities, including advertising on Prime Video. Following closely is Walmart, whose fiscal quarter ending October 21 demonstrates an even more remarkable growth of 28% in its global advertising revenue. Walmart Connect has tested advertising strategies that resonate well with customers, primarily focusing on ads that guide them in discovering and comparing purchases.
Amazon and Walmart are not just names—they collectively influence hundreds of millions of consumers globally. Their extensive data from retail media networks provides invaluable insights, making them attractive partners for brands seeking to leverage targeted advertising. However, smaller retailers face challenges in establishing similarly robust RMNs due to resource constraints. Yet, a few noteworthy entities are making significant strides in creating or enhancing their own networks.
For instance, Target’s Roundel has seen double-digit growth year-over-year, showcasing that even smaller retailers can successfully implement these networks. Costco’s recent foray into retail media culminated in a well-received campaign that yielded two to three times the expected return on ad spend. This performance highlights the potential for success across a range of retailers willing to invest in understanding their customer data.
Innovative collaborations are further advancing the capabilities of retail media networks. Best Buy Canada is partnering with the ad vendor Rokt to give exposure to products that aren’t typically available in their stores, thereby expanding their network’s utility. Similarly, David’s Bridal has taken a significant step by launching their Pearl retail media network in collaboration with Love Stories.
It’s essential to recognize the technological advancements driving this sector forward. The Home Depot’s Orange Apron retail media network has introduced a new self-service platform, Orange Access, which offers advertisers enhanced control and visibility into campaign analytics. This feature not only simplifies the advertising journey for brands but is also designed to facilitate targeted outreach and sales attribution—two critical factors for success in digital marketing.
Lowe’s is also making headlines with its new technology partnership, focusing on intrastore audio ads to strengthen brand messaging within their physical locations. This strategy hints at the omnichannel approach becoming increasingly essential in retail media networks, as businesses recognize that consumer touchpoints extend beyond online interactions.
The collaboration landscape widens with Macy’s Media Network, which integrates AI capabilities through the partnership with Rokt, showcasing how technology continues to evolve in enabling more sophisticated advertising solutions. This approach is vital as brands like Rag & Bone, David Yurman, and Chanel Beauty leverage Macy’s infrastructure, further emphasizing the need for retailers to remain competitive through innovation.
Additionally, the launch of the UNFI Media Network illustrates the increasing trend of grocery retailers enhancing their digital marketing capabilities. By extending services to over 30,000 retail locations and approximately 11,000 brand partners, this initiative highlights the cross-pollination of insights and opportunities in the grocery sector, traditionally seen as lagging behind in the RMN sphere.
This uptick in retail media activity is not just beneficial for advertisers; it reflects a growing realization among retailers that in-store interactions and customer engagement can be heightened through strategically placed media campaigns. The ability to measure the impact of such advertising—be it through in-store purchases or online visits—is paramount for any retailer hoping to maximize their return on ad spend.
In conclusion, while the 2024 landscape illustrates a competitive environment dominated by a few heavyweights, it also opens doors for innovation across the spectrum of retail businesses. As technology and consumer preferences continue to evolve, retailers that recognize the potential of retail media networks today will likely lead the charge in maximizing profits and enhancing customer experiences tomorrow.