Dunnhumby, the retail data science firm owned by Tesco, has published a report which gives a snapshot of the burgeoning Retail Media industry. It reveals that retailers who are not investing in building their own retail media eco-systems look could miss out on their portion of a multi-billion dollar global business.
The ‘Retail Media: State of the Industry’ report examines how major grocery retailers worldwide are increasingly turning to retail media to offset the increased costs and reduced margins of online shopping and Covid responses. And with Forrester predicting the industry could be worth around $50bn by the end of 2022, it’s understandable that retailers are turning their heads.
However, Julie Jeancolas, Head of Media and Customer Engagement Products at Dunnhumby, stressed that retail media is more than just high margins for retailers. She said: “With a high-intent, brand safe environment, CPGs and their agencies are increasingly moving multi-million dollar budgets to retail media. The combination of loyalty and purchasing data, and direct link between marketing spend and sales means a very attractive proposition for brands.”
Dunnhumby pointed to research involving leading media agencies and consumer packaged goods (CPGs) firms that showed a low level of satisfaction across several notable elements of existing retail media offerings. Crucial aspects of retail media, such as targeting, measurement, pricing, activation, and innovation, were all cited by CPGs and agencies as areas in need of development that need attention.
“From ease of use and availability of data to dynamic pricing and cross-channel activation, we are hearing loud and clear from CPGs that many existing retail media offerings still have some significant room for improvement,” said Jeancolas.
“CPG marketing teams and their media agencies need a high degree of certainty that their marketing investments have made a direct contribution to sales, and many existing retail media offerings need to up their game to deliver this.”
The report follows the recent launch of dunnhumby Sphere, an end-to-end retail media platform that aims to allow retailers to scale and maximise their revenues from retail media. It is already being used by Tesco to power several of the retail media products offered as part of the group’s new Media and Insight platform.
Related item:
Retail Media – A Quick Q&A
Alexander Knapman, Consultant at SG-Retail, offers a handy guide on the key aspects of Retail Media…read here
NAM Implications:
- Compare focus, precision, relevance, timeliness and impact at point of purchase (hand in pocket/purse) in the aisle…
- …with the blunt, redundant traditional broadcast media.
- …to get a clear idea of where press and TV are headed.
- And that’s just from a NAM perspective.
- “The combination of loyalty and purchasing data,
- and direct link between marketing spend and sales
- means a very attractive proposition for brands.”
- This says it all..
- (NamNews readers, please see Alex Knapman latest retail media article in Latest edition of NamNews May 2022)
