Key trends highlighted in the report include:
- Sustained growth in global digital retail media ad spending: Global digital retail media ad spend is projected to rise from $98BN in 2021 to $133BN by 2024 (CAGR ~8%) This growth is driven by the growing popularity of online shopping, particularly within previously nascent sectors such as grocery, and the development of adtech tools for better targeting and increasing sales
- Retail media is playing a pivotal role in shaping retailers’ global profits: Prominent retailers are strategically channelling the profits derived from RMN toward their business growth. Walmart’s significant growth in ad revenue holds great importance as it serves to offset the expenses associated with new fulfilment and distribution centres, as well as their expansion in the grocery category
- In-store continues to be the preferred choice of RMN investment from brands with POS and digital signage leading the pack: CPGs and agencies prioritized advertising through POS (59%) and smart digital in-store screens (57%) in 2022 over online coupons (51%), online search (51%), and online display (43%). Looking ahead, there is a continued focus on these priority channels, with POS and digital screens expected to maintain consistent investment in the near future
- Based on increasing demand from CPGs, measurement tools focused on quantifiable ROI such as sales growth and new customer acquisition are primed for growth and adoption: Dunnhumby’s latest research surveying CPGs and agencies highlights the growing demand for measurement tools, with the main KPIs cited by CPGs to measure the effectiveness of retail media’s impact being heavily sales-led such as new buyers on board (58%), ROAS (48%), and conversion (43%)
- Industry consolidation is reshaping retail media networks through M&A: M&A is reshaping RMN, bringing together resources and expertise while potentially reducing the number of independent players. Notably, acquisitions within retail media are largely capability or scale-driven, such as Inmar’s acquisition of Aki (2021), which enabled Inmar to enhance its existing RMN offerings with large-scale ad personalization and the Kroger-Albertsons merger (2022), where the combined entity aims to offer brands a more compelling advertising audience through its expansive network and a wider range of data that can enhance ad-targeting capabilities
Our report coverage includes key disruptors, observed trends within the industry landscape, and notable M&A and investment activity (including major deals within the last 24 months). The report’s focus it to highlight the increasing potential of technology and solution providers in shaping the emerging media business of retailers.