• by Bill Duggan , February 6, 2025

CINCINNATI -- Retail media is hot. The ANA just held a members-only conference focused on retail media, hosted by Kroger Precision Marketing in Cincinnati.  We learned so much.

Growth is dynamic. Retail media ad spending in the U.S. will be about $60 billion in 2025 and will grow to $100 billion by 2028 (per eMarketer). Retail media spend now rivals that of traditional TV. Think about that.

According to Boston Consulting Group (BCG), it took paid search 30 years to reach $30 million in net advertising revenue and social media 11 years. Meanwhile, retail media accomplished that feat in just five years.

There are now some 260 retail media networks (RMN [260 is not a typo]). Amazon accounts for the majority of the spend, followed by Walmart, Target, and Kroger.  The “long tail” of retail media is indeed long. 

Commerce media networks are also on the rise. That’s “commerce” rather than “retail” and includes Kinective by United Airlines, Expedia, Chase, and others. 

Retail -- and commerce -- media are fueled by first-party data via the respective loyalty programs of the players.

Purchase data from retail media is significantly more efficient at predicting consumer lifestyles and interests than demographics. You are what you buy.

Demographics are an outdated way to think about reaching audiences. Retail media can offer data that enables better targeting as it reflects real customer behavior. Nearly half of customer journeys start and end on retailer websites or apps. 

First-party data creates value for both the retailer and brand. According to BCG, there is a 20% attributed revenue increase from improved targeting while media spend can be reduced by 30% by targeting the right customers. 

But data alone is no longer a differentiator; access to insights is the differentiator.

To deliver the best results for a campaign, start with customer insights. Everything retail media does is grounded in insights. RMNs understand shopper behavior. Rather than giving advertisers just an audience, RMNs provide insights that can help drive business and the marketing plan.

“Incrementality” was the word of the day at the event. That is a metric that allows marketers to truly understand the incremental sales driven by every $1 invested in a retail media campaign.

According to one marketer, “That is table stakes... it allows me and my brands to compare apples to apples across all sophisticated RMNs what investment is helping move the most incremental sales. That allows me to have powerful data-driven conversations with my VP finance to advocate for an incremental budget for retail media. That’s the big unlock for how we as an industry will get that next leg of meaningful growth.” 

Measurement is the top challenge for retail media – specifically, the lack of standardization across platforms. Marketers need those apples to apples comparisons. The timeliness getting measurement information is a related issue – in some cases that can take months. 

In order to address the measurement challenge, ANA is working in a coalition with the Media Rating Council and has identified five key standard metrics.

1. Incrementality – as noted above

2. Relative performance – including category share growth

3. Audience metrics – including “new to” metrics such as new to the category or brand; also sales-related metrics such as cross-sales and up sell

4. Middle-funnel metrics – such as attentive time and viewable duration

5. Sourcing metrics – with reporting aligned to MRC defined traffic sourcing categories such as direct/organic

To be clear, unique/bespoke metrics from RMNs are welcome, but standard metrics are a must.

There was the comment that, “retail media is media” and we should expect media outcomes from retail media investment.  Well said.

I was delighted that creativity was part of the discussion. Once upon a time, creativity was king in our industry but that has since taken a back seat to media. (Comment – think about the number of times you’ve heard the term “programmatic media” versus “programmatic creative.”)  One of the marketers at the event stressed that they want their RMN partners to help brands understand the impact of their creative.” Another speaker noted, “Creativity is at the center of retail.”  I look forward to more discussion on the creative impact of retail media. 

In closing, a speaker noted, “we are in the Golden Age of commerce.” As long as the category can address the measurement issue, I agree.

Wow – 260 retail media networks. I wonder if the ANA should start one.  Just kidding.