According to Merkle’s most recent poll, 91% of retail media networks anticipate growth over the next three years, but the companies that use data to enhance their customers’ experiences will be the ones that succeed.
Incorporating survey data from retail media networks (RMNs) and brands, Merkle, the industry leader in technology-enabled, data-driven customer experience management (CXM), has issued its annual Retail Media Research Report. The rising RMN landscape and how firms are addressing an increasingly congested e-commerce industry are the main topics of the report. It also draws attention to some of the issues around changing consumer behavior brought on by increased expectations and inflation.
Many RMNs with different tenure, products, and sizes are already available; most of them predict growth of up to 25 percent in the next three years. This anticipated rise is the result of changes brands have made to their marketing plans in response to a difficult economic climate, such as a stronger presence on RMNs, frequently multiple ones.
“It’s no secret that RMNs are growing in popularity. In the past year alone, we’ve seen the investment from brands into RMNs spike exponentially, something we can attribute to changing consumer buying habits and expectations”, “What’s interesting beyond that is how brands will continue to choose which RMNs they want to work with and how that will impact the overall trajectory of the space. Right now, we’re seeing a boom in the number of RMN options that brands can work with, but the ones that rise to the top will be those who continue to innovate and deliver what brands actually want.”
Megan Cameron, SVP, Retail Media Network, Merkle
The study states that although practically all RMNs anticipate rapid growth over the next few years, the most prosperous ones will assist companies in utilizing omnichannel offers, collaborations, and data to build consumer brand loyalty and CX. Making sure RMNs are assisting companies in hitting those three areas will be critical as the market gets more saturated. In addition, the research offers suggestions for RMNs and brands as they proceed to establish the framework for their marketing plans until 2024.
Among the report’s other important conclusions are:
- A whopping 47% of brands desire data and insights devoid of media.
- Outside of onsite media, monetization investment sectors accounted for four of the top five RMNs this year.
- The dominance of onsite media has diminished, with approximately equal shares of offsite and onsite campaigns in 2023.
- Up from 15% in 2022, 25% of RMNs provided dynamic creative optimization (DCO) to brands as a monetization program in 2023.
In order to enable RMNs and brands to make future marketing decisions that are well-informed and strategic, the Retail Media Research Report attempts to provide the greatest understanding of the industry. Marketing professionals need knowledge, insights, and data as 2023 draws to a close and preparations are formed for the upcoming year in order to be successful.