Retails vs Adland

Retails vs Adland. Retail media is a new advertising giant. Retail media leverages first-party shopper data from retailers like Amazon, Walmart and Deliveroo, offering brands a brand-safe platform for advertising. Brands can test retail media sites to understand performance and investigate becoming a media owner for increased advertising effectiveness. Large enough retailers can evaluate becoming media-owners.

This trend originates from the report:

DENTSU - Media Trends ‘23

Retails vs Adland. Retail media is emerging as a new advertising giant, with retail media spend projected to reach $61.15 billion in 2024 in the US alone.

Retail media leverages the wealth of first-party shopper data that retailers like Amazon, Walmart, and Deliveroo possess, turning them into compelling advertising options for brands. Shopping data gives retail media sites an advantage over traditional publishers and social media apps, which do not have as much data on their users. Amazon has proven to be the most successful proponent of retail media, with its advertising revenues growing exponentially in the past five years.

Amazon's advertising business gives it high margins, much higher than commerce, and provides advertisers with access to Amazon's data on its logged-in customers. Retail media sites like Walmart and Instacart, delivery and mobility apps like Uber, Lyft, and Deliveroo, and even hotels like Marriott are introducing their own advertising opportunities. Apple, with its App Store and massive amounts of first-party data on its users, could also become a big player in the advertising industry.

Apple has recently been recruiting for many advertising roles, indicating a possible future ambition in that domain. Brands can test retail media sites to understand their performance, incorporate their data into media planning, and investigate becoming a media owner. According to Amanda Morrissey, "navigating an ever-evolving retail landscape requires a new, multidisciplinary approach, fully integrated into your marketing and media operations".