The spend on retail media ads is expected to grow more than 25% this year to $51 billion, and by 2024, it will grow to nearly 20% of the total digital ad investments, according to a new report by marketing firm LiveIntent.
The report titled “The 2023 Retail Media Market Report: Unlocking Adoption, Mastering Best Practices, Overcoming Challenges & Driving Performance,” surveyed more than 200 marketing professionals, revealing that a strong majority (84%) of those surveyed said they anticipate increased adoption of retail media networks (RMN) over the next 12 months.
An even larger majority (90%) said they believe that retail media networks will grow, and 88% think RMNs will have a positive effect on reaching customers.
More than two out of every five (43%) said they have they’ve used RMN successfully, while another 40% said they have not but are interested in considering it. A total of 12% said they have used retail media networks in the past, but those efforts were unsuccessful.
Nearly three-quarters (73%) of advertisers polled said they plan to invest more in RMNs, according to the report.
The interest is due to the success of RMNs; nearly two out of every three (63%) advertisers said retail media advertising was more successful than other kinds of digital media strategies. Engagement with customers significantly improved for more than half (54%) of those surveyed.
“Retail media is booming because retailers have first-party email data, logged-in users on web and app and offer closed-loop measurement,” said Mike Pisula, VP of Product Development at LiveIntent, in a statement. “What’s missing is better measurement including incrementality. Advertisers want to spend more on retail media networks, they are just waiting for the offerings to catch up with their needs.”
Executives from both Target and Walmart have referred to retail media as a key component of their businesses in the years ahead. And Kroger CEO Rodney McMullen called retail media networks a "massive opportunity" earlier this year.
"If you look at CPGs, they’re spending $100 billion to $120 billion a year on media," McMullen said at an investment conference. "Our share of that is just a fraction of what we think we should get or can get. Now we have to earn our right to get that. … So, to us, we think we’re just getting started.”