Retail media networks continue to grow apace, adding to the issues faced by the retail sector, which is still negotiating the continuing evolution of omnichannel commerce.
“In terms of untapped space, I think digital in-store is the biggest opportunity right now,” said Erin Houg, VP of media at Ulta Beauty.
Houg and other executives scheduled to speak at Brand Innovators’ Evolution of Commerce Summit shared their concerns and challenges, and what they see as the biggest opportunities to tackle these issues. The summit, scheduled to take place in New York May 15, comes at a fraught time for retail, when the threat of trade wards threatens operations, and uncertainty around the economy is reflected in volatile sales figures.
Retail media networks offer a beneficial opportunity for merchants to monetize their data, relationships and sales floor, either in real life or virtually. Houg noted Ulta is growing its UB Media network by running a pilot of CTV and streaming audio in the second quarter and is also piloting a luxury private marketplace to leverage its data to serve brand advertising in relevant premium sites.
The RMNs, still a growing medium, are increasingly widening their scope to target consumers across a more complex journey that can cut across platforms, and both online and off-line shopping.
“Consumers no longer follow a traditional purchase funnel, but blend physical and digital experiences throughout their journey,” said Suzanne Skop, head of agency partnerships at Instacart. She noted this is demonstrated in data collected in the online grocer’s smart Caper Carts, which show shoppers clipping digital coupons in-store, and spending more time shopping for larger orders.
“Success is when both consumers and brands win, regardless of where the purchase happens,” said Skop.
Lauren Griewski, head of sales and partnerships at Chase Media Solutions, noted Chase takes a holistic view to identify how customers shop across the entire marketplace, not just its own network, so it can accurately measure the impact of a campaign on incremental sales. As a financial services provider, Chase has the advantage of strict data security and spending data across the marketplace.
“Because we’re with our customers during key moments in their lives—whether they’re buying a home or booking a vacation—we have a deep understanding of their spending habits,” she said. “This allows us to help brands deliver personalized and contextually relevant offers to an engaged audience through our brand-safe channels, ultimately leading to increased spend and higher returns.”
Measurement as a superpower
Measurement and attribution are often mentioned by retailers as a continuing challenge to RMNs’ growth. Standard metrics and measurements remain elusive, while many retailers and RMNs are working with partners to provide more accurate and relevant measurement.
“The biggest challenge I see is the need to standardize measurement and provide a more apples-to-apples comparison against broader media executions,” said Matt Fantazier, head of integrated media at Kenvue, a spinoff of Johnson & Johnson, that handles brands such as Tylenol, Band-Aid, Listerine and Neutrogena. “As we look to leverage retailer data and capabilities to grow our brands, not just inside of their walls but across the marketplace, this level of standardization and transparency will be critical.”
Data and measurement are “the superpower for RMNs,” said Fantazier. They are also the biggest opportunity to develop, according to many retail experts.
“Our biggest measurement challenge is tracking how people actually shop today, jumping between phones, computers, and stores in unpredictable patterns. We need attribution models that connect these dots accurately,” said Skop. “The industry is moving toward unified standards that combine traditional metrics with retail media innovations to give a complete picture.”
In an environment where shoppers increasingly cross channels and even platforms in a much more complex consumer journey, RMN’s have responded by building partnerships and tools that allow brands to gauge much more exactly how their investments in these media channels are performing.
“The biggest opportunity is extending retail media beyond the point of purchase to the entire consumer journey,” said Skop. “Our partnerships with Google, Meta, NBCUniversal, The Trade Desk, and Roku show how we’re applying the same targeting precision and measurement clarity across the full shopping experience – not just at checkout.”
Retailers are also enhancing the creative output and innovating their messages to offer brands an enhanced opportunity to gain the consumers’ attention in a crowded marketplace.
“I’m really excited about the opportunity to deliver more in the brand-building and strategic thought leadership spaces,” said Houg. “I believe retail media networks have a higher level of responsibility to drive success for our advertisers and be strong business partners.”
Houg noted UB Media plans to introduce more opportunities with social influencers and digital in-store advertising “all designed to enhance brand visibility and guest interaction across diverse media landscapes.”
An omnichannel focus is table stakes now, according to retailers.
“We’ve expanded our advertising beyond the point of purchase because consumers expect personalization everywhere, whether they’re shopping online, using our smart carts in-store, or ordering through Uber Eats,” said Skop. “Our focus is on creating relevant and complementary product discovery tailored to what customers actually need.”
