9 Pivotal Trends Shaping Tomorrow's Retail Media
Retailers are facing a transformative moment — a seismic shift from traditional linear TV and cookie-based measurement to unprecedented, targeted messaging and measurement opportunities using retail media. While this transition is still in the early stages, the momentum is undeniable. Retail media is far outpacing the growth trajectories of search and social media advertising.
Understanding and adapting to emerging retail media trends are beneficial and essential for success. Below are nine critical retail media developments reshaping our industry. We'll discuss how retailers can leverage them for immediate impact.
1. The Retailer-Brand Role Reversal
Retailers, while traditionally buyers, are beginning to master the art of media selling through retail media networks. While this seems jarring now, success will hinge on how well retailers can pivot and develop new skill sets to leverage their valuable data. Those who invest in building robust media sales teams and strategic capabilities are already seeing the benefits in their planning.
2. True Customer Experience Over Short-Term Gains
While the pressure to drive short-term revenue is intense, retailers that prioritize customer experience over fleeting wins will see stronger long-term results. Focus on delivering consumer-centric value and seamlessly integrating retail media in ways that enhance rather than detract from the shopping journey to drive enduring satisfaction and loyalty.
3. Data as the Core Driver of Retail Success
Brands are enhancing their data science capabilities and adopting data-led decision-making to stay competitive. This includes improving data literacy and embracing a culture of continuous learning.
Retailers need to move beyond basic demographic targeting and embrace sophisticated data analysis that can inform real-time decisions. This means being able to analyze and act on emerging shopping patterns during peak selling periods to stay ahead.
4. Ad Fraud and Waste Combatted With Precision
Ad fraud and waste mean media shrinkage and pose significant challenges. While we can't eliminate these issues entirely, retailers with strong retail media networks are demonstrating how to mitigate their impact through rigorous inventory quality controls and sophisticated incrementality measurement. This precision not only protects investment but also maximizes return.
5. Clear Authority in Retail Media Leadership
Successful brands are eliminating ambiguity around retail media decisions by establishing clear chains of command. This clarity, clear communication and aligned incentives unify teams around common goals and allow for rapid and strategic decisions, particularly during high-stakes periods like Black Friday and Cyber Monday. Breaking down organizational silos and fostering aligned incentives are essential for cohesive strategy execution.
6. Upfronts for Strategic Advantage
Retailers are increasingly influential in upfront media planning, competing with major digital properties. Forward-thinking retailers can secure larger commitments and foster deeper alliances by assisting brand partners with data-driven upfront strategies. This proactive approach represents a golden opportunity to lock in strategic partnerships.
7. Deeper Consumer Insights Through Collaboration
While achieving a complete 360-degree view of consumers remains elusive, retailers are becoming adept at sharing cohort-level data with brands. Collaborations in data clean rooms are enabling brands to better understand and respond to consumer behavior across channels. These innovations are paving the way for more effective targeting and suppression strategies.
8. Consolidation for Efficiency
Concerns about the proliferation of retail media networks are being mitigated as the market naturally evolves toward efficiency. Smaller networks are increasingly partnering with larger platforms, simplifying the landscape for advertisers and fostering a more streamlined and effective advertising environment.
9. Measurement Innovation for Actionable Insights
While perfect cross-retailer measurement remains challenging, the insights available to brands are becoming more actionable and reliable. Retailers and brands are focusing on metrics that matter rather than pursuing unattainable perfection. Collaboration and innovation in measurement practices are key to driving the industry forward, creating a more mature and efficient marketplace.
As another year of significant growth in retail media winds down and the pace of change accelerates, retailers and brands must continue to embrace this growth and change, build stronger relationships and learn from challenges to deliver even greater value to customers and their respective businesses.
About the Authors
Joe Frick is a distinguished sales and business development expert at G-Comm, a division of Goodway Group, specializing in data-driven marketing strategies. As vice president of business development, he helps clients exceed customer acquisition and retention goals through the smart, creative and ethical use of marketing data. An active industry speaker, mentor and advisor, Joe is known for his high-energy approach and continual pursuit of knowledge, currently enhanced by his EMBA studies at NYU Stern. His expertise spans strategic planning, data analysis and innovative marketing solutions.
Angela Myers, currently serving as SVP of retail media for G-Comm, a division of Goodway Group, brings more than 20 years of experience across retail and ad tech with former leadership roles at Oracle, Datalogix, and A&P. With a strong background in insights, analytics, data monetization and retail media coupled with a customer-first approach, Myers now leads G-Comm, Goodway Group's retail media accelerator, expertly navigating brand marketers and retailers through the evolving retail media landscape.