The expected growth for retail media in the coming years is huge. Supermarket chains, in particular, can use their ad departments to outpace hard discounters, a new analysis shows.
Bigger than TV
If there has been one hyper-topic in retail in recent years, it is the unsustainable rise of retail media. For retailers, it is a more than welcome additional source of revenue and margin. For brands, it is an opportunity to promote their products and services in stores, on retailers’ websites and apps. The fact that they can use those retailers’ first-party data to do so is a strong asset in an era without third-party cookies. You reach consumers in the right place at the right time with the right message.
The outlook is therefore overwhelming: by 2025, global retail media budgets could represent as much as 176 billion dollar (164 billion euros). This would therefore already make the sector larger than that of television advertising. This growth is largely driven by the continued growth of e-commerce: as more consumers shop online, retailers have more opportunities to generate revenue from their platforms through advertising. Yet supermarket chains are perhaps in the most favourable position to take advantage of retail media exploitation.
Higher margins
From now on, you will find our Plus content exclusively in the new RetailDetail Connect&Learn app or web environment. Click the button below to continue reading the article there.
