Exploring the Challenges of Retail Media Networks

Retail media networks (RMNs) are the current and next big thing in advertising. Walmart’s RMN, Walmart Connect, is responsible for 12% of the company’s profits, and one-quarter of retailers are generating more than $100 million in revenue from their media networks. Ad spending on RMNs is projected to grow to $100 billion by 2026, and 60-70% of that will be net new spending. Despite this, the RMN ecosystem is still in its early stages, and there are many challenges for brands and retailers to overcome.

We spoke to Michael Greene, head of strategy at Criteo, to find out what he sees when he looks at the RMN landscape. He said that it is the biggest trend in advertising right now, but at the same time it is still an immature area of the market. He said that brands and their agencies are facing a huge challenge when it comes to buying across dozens or even hundreds of different retailers, and there is no equivalent of the programmatic marketplace for RMNs. He also said that the technical challenges are unique, as retailers need to find a way to create an ad experience that is complementary to their business of selling products, but also easy enough to buy that brands don’t have to reinvent creative every time.

Greene suggested that retailers should ask brands what is most successful and what is driving the most investment for them at other retailers, and factor that into their decision-making. He also said that the conversation between retailers and brands is not happening enough.

It is clear that RMNs are the current and next big thing in advertising, but there is still a lot of work to be done in order to make them work for brands and retailers. Technology-savvy business professionals should be aware of the challenges that RMNs present and how they can be overcome, in order to make the most of the potential they offer.

Originally reported by Martech: https://martech.org/what-brands-and-retailers-must-know-about-rmns/
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