Retail media platforms enable companies to build brand awareness and drive product sales from one platform. The ability to easily target consumers makes retail media platforms an efficient and cost-effective advertising strategy. As of 2021, Amazon was declared the third-largest advertising platform, accounting for 13% of digital ad spend in the US. Retail media will continue to grow and here are five contributing factors:
- Precise audience targeting: First-party data will allow companies to create personalized ad platforms.
- “Pay-to-Play”: Increased sponsorships can help brands gain more organic search visibility.
- Non-endemic opportunity: Retail media networks are suitable for companies beyond consumer goods.
- Incumbents are expensive: Privacy changes are increasing the cost of advertising for many brand advertisers.
- More retailers are launching media platforms: Third party platforms are helping companies establish their own retail media networks