With IAB predicting that the retail media industry in Europe will be worth €25bn by 2027, there is a huge amount of growth to be had as networks are developed by the likes of Tesco, Sainsbury’s, Asda, Amazon, Carrefour, and Rewe.
This is according to The Mars Agency, which has published its first Retail Media Report Card for Europe following its launch in the US in August 2022 and then in Australia this year. It has been widely viewed by the industry as an effective tool for brands to compare retail media network capabilities and help determine where and how to allocate their retail media investment. It has also played a part in helping retailers to understand how they stack up and inform their future product roadmaps.
To compile the first edition of its European Retail Media Report Card, the global commerce marketing practice partnered with nine retail media networks, all key players within three of the most established countries in Europe for retail media – the UK, France and Germany. For future editions, The Mars Agency will be doing a deeper dive into additional markets and retail media networks.
The group noted that its initial report shows how evolved each country is in their retail media journey and just how much progress has been made. Although the European market is much more nascent than the US, retail media has already become a powerful tool for brands to reach their target audience effectively. The Mars Agency highlighted that by partnering with these networks, brands can tap into the retailer’s customer base and gain access to valuable customer insights. This allows brands to deliver relevant and personalised marketing to shoppers, increasing the chances of driving conversion right at the point of purchase.
The company said: “Although retail media is an incredibly powerful tool in the commerce marketer’s toolkit, it can be extremely complex for brands to navigate the market. Among the frustrations we hear from clients are the many differences in capabilities, not only from one market to the next, but at each retailer; the fact that legacy structures internally make it hard for brands to plan holistically; that language barriers across the vast European markets force some planning and tactics to be managed locally rather than regionally; and, let’s not forget, the lack of standards in the measurement and insights that networks provide.
“It is therefore extremely important to understand as much as possible about each retail media network so you can effectively plan and invest your marketing spend where you will achieve the best results.
“Our goal with this Retail Media Report Card is to provide valuable insights and recommendations to our clients, helping them select the best retail media partners across Europe by giving them a transparent overview of the capabilities at key European networks and make investing in retail media a simpler proposition.”
Download a copy of the Retail Media Report Card: Europe here
NAM Implications:
- Brand owners everywhere need to keep on top of this alternative way of reaching current and potential users.
- Given the differing quality of first-party data provision, reports like this are key.
- Bearing in mind that much of the resulting negotiation will be conducted with in-house colleagues…
- …as this monumental step-change in the allocation of marketing/trade funds takes place.
