2023 Predictions on Retail Media
5 min read
This year, Retail Media will be largely one of the marketing channels where advertising growth is anticipated.
The digital world is becoming complicated, data-based, and competitive more than ever. All advertisers feel the need to discover ways to give contextually relevant content in areas that foster brand improvement and customer loyalty, as well as have a greater understanding of the data that supports their advertising. Economic difficulties and the recession have been the main issues this year. In 2023, the whole media industry is anticipated to experience reduced growth trends due to inflation. Despite the recession, Retail Media will keep expanding as online shopping channels and sales expand.
On top of everything, by 2025, online sales are anticipated to exceed $2.8 trillion, indicating that e-commerce will continue to rise immensely. The Retail Media market will be able to provide brands, advertisers, and retailers with an increasing number of opportunities. It is a fact for the new year that 81% of customers are eager to spend extra in retail stores that provide convenient shopping experiences.
Retail Media Growth & Potential Benefits
Despite the general economic slowdown in 2022, the Retail Media market in Europe reached nearly $8.5 billion, according to the chief economist for IAB Europe. This year, a stronger relationship with retailers was the most significant benefit that Retail Media provided for brands, followed by creative services, access to white-label product opportunities, first-party sales data, and customization options. Retail Media platforms have given retailers a new source of income and a chance to discover more about their customers.
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Next year, developing digital ad strategies will be essential as brands expand their e-commerce services to make sure their ads are seen by actual people on different websites next to appropriate content to enhance brand recognition. Most advertisers (92%) and nearly three-quarters (74%) of agencies already have developed relationships through retailer platforms to reach customers. 88% of advertisers and 77% of agencies anticipate using Retail Media platforms as sources for content participation.
The key market trend will be the ability to integrate ad exposure and conversion on a single platform. This year, retailers will increasingly serve as a go-to partner for most advertisers and brands that want to connect with consumers.
The essential component in marketing plans
Retail Media is gaining a larger and larger portion of the advertising budget compared to other channels, thereby enhancing its dominance across the global digital media landscape. Global revenue is anticipated to reach $101 billion by the end of the year, and in 2023, we’ll see even more CPG advertising budgets allocated here. US digital Retail Media ad spending will increase 31.4% this year to reach $40.81 billion, says Insider Intelligence. The total will reach $61.15 billion by 2024 and account for over 20% of all digital advertising spending.
Retail Media will be largely one of the marketing channels where advertising growth is anticipated. Eighty-two percent of US advertisers intend to raise their expenses on retail media advertising this year. According to a study conducted by IAB Europe and Microsoft, 90% of the more than 800 buy-side stakeholders expect to work with a retailer in the upcoming year, indicating that Retail Media is now a firmly established component of marketers’ plans.
What is making all these businesses turn to Retail Media?
Retail Media gives a genuine chance for companies to contact customers efficiently and leverage first-party data as an alternative to third-party cookies’ depreciation which all e-commerce businesses talk about this year. Due to the disappearance of third-party cookies, many advertisers are now using retailer platforms. 91% of advertisers said that they now view Retail Media as a critical component of their advertising strategy. We may anticipate an increase in the number of retailers launching their networks in 2023, particularly the data-rich ones like groceries. Retailers will securely utilize their current first-party data to establish a profitable new revenue stream. And, brands will be able to precisely identify and morally connect with consumers across new channels provided by Retail Media platforms.
As more and more businesses begin working with Retail Media the variety of emerging ad formats available for online sellers will considerably expand in 2023. As an example, Sponsored Ad formats will enable both consumers and brands to gain the visibility necessary to close sales. It is clear that the majority of advertisers and agencies are optimistic about Retail Media in 2023.
Smart Partnerships in the background
Personalized marketing experiences will continue to be significant in order to improve the consumer journey in a more open and transparent digital environment, through platforms to discover the exact audiences. For more individualized and reliable connections, advertisers are therefore likely to prefer smart partnerships this year. As consumer data is much more significant now, brands will try to find ways to target consumers with more individualized advertising messages.
What will happen to third-party cookies? In what ways will consumer habits change in 2023? How can advertisers thrive in the new era of digital advertising? Since we’ve come to the end of 2022, we are all wondering about these questions. Rather than making blind predictions, we can look at the highlighted insights of this year to get a glimpse of what may lie ahead in the promising future of Retail Media. We believe that in the midst of ongoing economic chaos, it is likely that using new channels through Retail Media, all e-commerce brands, B2Bs, and CMOs can effectively discover fresh consumer trends and build brand visibility, while improving sales & profitability.
Adgate, B. (n.d.). Advertising Agency Executives Weigh In On What To Expect In 2023. Forbes. Retrieved December 22, 2022, from https://www.forbes.com/sites/bradadgate/2022/12/12/advertising-agency-executives-weigh-in-on-what-to-expect-in-2023/?sh=5939fe0b5c19
Dillon, H. (n.d.). Retail Media: Predictions for 2023. Www.exchangewire.com. Retrieved December 22, 2022, from https://www.exchangewire.com/blog/2022/12/13/retail-media-predictions-for-2023/
Feger, A. (n.d.). What you need to know about Retail Media in 5 charts. Insider Intelligence. Retrieved December 22, 2022, from https://www.insiderintelligence.com/content/what-you-need-know-about-retail-media-5-charts
Lepitak, S. (n.d.). Most Advertisers and Agencies Are Positive on Retail Media. Retrieved December 22, 2022, from https://www.adweek.com/media/most-advertisers-and-agencies-are-positive-about-retail-media-in-2023/
Retail Trends and Predictions 2023. (2022, December 13). Digital Main Street. https://digitalmainstreet.ca/retail-trends-and-predictions-2023/