Retail media networks (RMNs) have been around for decades, but digital technology has taken them into a whole different realm. RMNs are a platform that lets brands buy advertising on a retailer’s digital properties, including in-store and on the open web. This gives brands access to hard-to-reach customers, improved targeting with shopper data, and the ability to tie ad spend to sales.
Retailers benefit too - they get to provide customers with offers they want to see and discounts they might otherwise miss, and they earn money from ad sales. According to MediaRadar, in the eight months from May 2021 to January 2022, more than 23,500 companies bought ads on RMNs, and 24% were first-time buyers. The retail media market is projected to grow to $100 billion over the next five years and will account for over 25% of total digital media spending by 2026.
Brands are also getting value from RMNs beyond first-party data. It’s easier to tie ad spend to sales, and they can get essential data for strategic decisions like resource allocation and ROI. However, there are still challenges to be faced. For one, there’s a lack of standardization in systems and measurements. Brands and agencies are buying from hundreds of retailers globally, and each one has its own unique technical specifications.
The IAB, in collaboration with the Media Rating Council, released a draft of the IAB/MRC Retail Media Measurement Guidelines to address this issue. The guidelines focus on four areas: transparency and consistency, accuracy and reliability, privacy and security, and compliance with industry standards. They cover in-store digital place-based (DPB) environments too, with recommendations on taxonomy and measurement for visual and audio ads.
RMNs have become a major focus of brands and retailers, and promise a great deal of potential for both. With the IAB/MRC guidelines, the technical issues should be solved, allowing the RMN market to continue to grow.
Originally reported by Martech: https://martech.org/why-we-care-about-retail-media-networks/
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