Trends 2021: Retail Media Networks

The steady growth of retail media networks as shopper engagement vehicles accelerated pretty dramatically in 2020 due to the pandemic, as shopper marketers had to lean far more on digital platforms to connect with consumers who were avoiding brick-and-mortar stores and adopting new shopping habits. “Our biggest customers are becoming … media companies themselves,” said Ken Krasnow, Henkel NA’s vice president of omnichannel marketing, during the Path to Purchase Digital Expo last November. “It’s really, really important to leverage this customer media, which is so valuable.” Of course, not all networks are created equally – at least in their early stages of development. Kroger’s media platform, Kroger Precision Marketing (KPM), leads the way in many key performance metrics compared to other platforms from retailers, according to Trends survey respondents. Similar to last year, respondents were asked to rate the retail media platforms with which they work based on their relative strengths in targeting effectiveness, measurement capabilities, ROI, data sharing, sales growth, creative freedom and traffic-driving capabilities.A majority of survey participants who have worked with KPM gave the platform an “excellent/very good” score for targeting effectiveness and measurement capabilities. KPM also received mostly “excellent/very good” and “good” scores for data sharing and sales growth. Amazon Advertising fell a bit behind KPM on targeting effectiveness and measurement capabilities this year, but overall scored generally well (especially within the ROI category) compared to other platforms. “The richness of Kroger data has always been a huge enabler for us to better understand our customers and provide relevant and personalized experiences,” Lindsey McGowan, shopper marketing manager at General Mills, said during a P2PX session hosted and sponsored by KPM. “However, in a time like today, when dramatic shifts are happening [in] real time, it’s been an invaluable asset for us just to keep up with patterns that are shifting quickly to meet the customers’ needs.” Among other survey results: • Not surprisingly, brands are working with Walmart Media Group, Target’s Roundel, KPM and Amazon DSP the most. • Roundel generally earned “excellent/very good” and “good” scores for targeting effectiveness and traffic-driving capabilities. • Although the CVS Media Exchange network is relatively new, respondents gave the platform a “good” score for creative freedom and targeting effectiveness. And the concept of these networks representing legitimate “media” opportunities might be taking hold as well: Almost one-fourth (24%) of respondents said network buys are being funded by national media budgets, up from 18.2% last year. A fair number of skeptics remain, however: almost one in four survey takers said the networks are more a “money grab for the retailer” than an effective tool.“Retail media is a huge pain point for us. It works, but the cost structure is not transparent, the measurement is self-done and the media is not that cool,” said a director of shopper marketing during a late-2020 virtual forum.Consider this trend a work in progress.For a deeper dive into the survey and its results, see the "Summary of Findings."

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