November2，2023

DeborahWeinswig,CEOandFounder,CoresightResearch|deborahweinswig@

Copyright?2023CoresightResearch.Allrightsreserved.

November2，2023

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DeborahWeinswig,CEOandFounder,CoresightResearch|deborahweinswig@

Copyright?2023CoresightResearch.Allrightsreserved.

ExecutiveSummary

Inthisreport,weexploreshortfallsandopportunitiesintheretailmediamarket,includingpersonalizedpromotions,fromabrandadvertiser’sperspective,anddiscusstheirimplicationsforretailersandtheoverallmarket.

MarketScaleandOpportunity

?WeestimatethattheUSretailmediamarketgenerated$43.3billioninrevenuein2022andwillreach$51.9billionbytheendofthisyear.

CoresightResearchAnalysis

?Theevolutionoftheretailmediamarkethasledtobrandadvertisersexperimentingwithnewerformatsand

includingawiderarrayofpromotionalformatsintheirmarketingmix.RecentCoresightResearchsurveydata

revealthatoverhalfofUS-basedbrandadvertisersplantospendmoreintheirnextmarketingbudgetthantheycurrentlydoacrosspromotionalformats.

?Whilemuchofthegrowthinretailmediadollarsisfromincrementaldollars,itisimportantforretailerstoaddresstheshiftsintradeandbrandadvertisingbudgets.Ahuge94%ofbrandadvertisersplantodivertsomeoftheir

planneddollarsfromtrademarketingtofundretailmediaintheirupcomingmarketingbudget,accordingtooursurvey.

?OursurveydatarevealthatbrandadvertisersusedsixRMNsonaverageinthepast12months,withalmosteverybrandadvertiser(96%)usingatleastthreeRMNs.ThelargenumberofRMNsinthemarketmeansthereisalotofchoiceforbrandadvertisers,makingitmoreimportantthaneverforretailerstodifferentiatetheiroffering.We

expectbrandadvertiserstolimitthenumberofRMNstheyuseoncetheyhaveidentifiedtheiroptimaladvertisingmediamix—resultinginamorecompetitiveenvironmentforretailersthatofferRMNs.

?ThemostwidespreadchallengeamongbrandadvertiserswhenitcomestoRMNsisalackofcollaborationwithretailers.Enhancedcollaborationcanpositivelyimpactrevenuesforretailersandsuppliers,andimproveddatasharingcanhelpsolvechallengessuchasbrandadvertisers’inabilitytounderstandROAS(returnonadvertisingspend)andlimitedvisibilityoftargetaudience.

?Trustandcollaborationhavethemostwidespreadpositiveinfluenceonbrandadvertisers’spend,with99%of

respondentsreportingthattrusthasatleast“some”positiveinfluence.Webelievethatfosteringtrustwillrequiresolvingintrinsicretailmediachallenges—retailersmustnotworkinsiloesandmustensurethattheirattribution

metricsareclear,channel-specificandeasy-to-understand.

?Meaningfulstepsthatretailerscantaketobuildtrustamongbrandadvertisersincludeofferingashared

collaborationplatformtoenablereal-timecommunicationanddatasharing.Oursurveyrevealedthatlessthanone-quarterofretailerssharedataandanalysiswithbrandadvertisersinrealtimeduringadcampaigns.Amongsurveyedbrandmanufacturersthatdonotreceivedatainrealtime,amassive97%reportedthatreal-timedatasharingwouldpromptthemtoincreasetheiradvertisinginvestments.

?Brandadvertisersexpectaholisticretailmediaofferingwith3.4promotionaltools,onaverage,oursurveyfound.Thetoptwotoolsexpectedbybrandadvertisersaredigital/physicalcouponsandsocialpromotions,eachcitedbyaroundtwo-thirdsofrespondents.Retailersshouldlooktooffermultiplepromotionaltoolstoprovideamore

compellingandwide-rangingretailmediasolution.

?Mostbrandadvertisers(95%inoursurvey)areusingnon-digitalcouponsintheirmarketingmix.Transitioningtomoredigitalcouponscanstrengthenretailers’first-partydataastheycanbeincorporatedintoretailers’loyalty

appandimprovebrandadvertisers’understandingofROASwhileallowingthemtorunpersonalizedoffersand

promotions.Oursurveydatarevealthatamongthebrandadvertisersthatcurrentlyusenon-digitalcoupons,96%woulddiverttheirmarketingbudgetsfromnon-digitalcouponstodigitalcouponsiftheywereabletotargettheiraudienceviaaself-serveplatform,and91%wouldbemorelikelytodomoreretailer-specificoffersiftheyhad

morecontrolovertheprocessviaaself-serveplatform.

WhatWeThink

Retailmediapresentshugeopportunityforbothbrandadvertisersandretailers,butcompaniesmustrealizethatthe

marketisfarfrommatureandisdevelopingquickly.Whiletherewillbeongoingopportunitiesinthemarket,fewarelikely

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DeborahWeinswig,CEOandFounder,CoresightResearch|deborahweinswig@

Copyright?2023CoresightResearch.Allrightsreserved.

totranslatetolong-termtrends;retailersmustbeproactiveincapitalizingonbuddingtrends.Havingacommunicationanddata-sharingportalthatenablesthetransferofinformationinrealtimecangivebrandadvertisersmorecontroland

confidenceinanRMN.Allowingthemtomakereal-timechangestotheiradcampaignsbasedonreportingmetricscanfurtherbenefitROAS.

RetailersPoisedToGainAdvantage

?Well-positionedretailersintheretailmediamarketarethosewithlargestorefootprintsthatalsoincorporatedigitalplatformsintheirretailmediachannelsandfocusondiversificationintheirRMNs.

?RetailersincludingWalmartandDollarGeneralhavetakenmeaningfulstridestowardincorporatingsocialanddigitalintheiroverallretailmediamix,whichwillattractbrandadvertisers.

RetailersThatRiskLosingAdvantage

?Retailmediaisnotjusttop-of-funnelbrandadvertising;brandadvertisersarefocusedonmeasurablereturns,sotargetingtherightconsumerisessential.Retailersthatdonotprovideaunifiedadexperience(withminimal

disruptiontoconsumers’search-to-purchasejourney)canfalloutoffavorwithbrandadvertisersand/or

consumers.Personalizationinitiatives,orlackthereof,willimpactwhichretailersloseadvantageintheretailmediamarket.

DeborahWeinswig,CEOandFounder,CoresightResearch|deborahweinswig@4

Copyright?2023CoresightResearch.Allrightsreserved.

CONTENTS

Introduction 5

MarketScaleandOpportunity 5

TheUSRetailMediaMarket—UnderstandingtheAdBuyer’sPerspective:CoresightResearchAnalysis 5

UpcomingMarketingBudgetsReflectOptimism;DigitalUnderlinesSignificantOpportunity 6

MarketingBudgetMixContinuesToBeinFlux 7

BrandAdvertisersAreUsingMultipleRMNs 7

GapsExistintheFast-GrowingRetailMediaMarket 8

SolvingforChallengesCanPositivelyInfluenceAdvertisers’SpendonRMNs 9

RetailersShouldFocusonProvidingaHolisticRetailMediaOffering 11

Self-ServePlatformsIncreasetheLikelihoodofEarningIncrementalDollars 11

WhatWeThink 11

ImplicationsforBrandsandRetailers 12

RetailersPoisedToGainAdvantage 12

RetailersThatRiskLosingAdvantage 12

TypesofSolutionsforRetailMediaandPersonalizedOffers 12

ImplicationsforTechnologyVendors 12

Methodology 13

November2，2023

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DeborahWeinswig,CEOandFounder,CoresightResearch|deborahweinswig@

Copyright?2023CoresightResearch.Allrightsreserved.

Introduction

Theadoptionof

retailmedia

continuestosurge,butadbuyersincreasinglyexpectmorefromretailers’retailmedia

networks(RMNs),includingmorepersonalizedandtargetedads.Retailersmustaligntheirofferingwithmarketshiftstoforgethebestpathforwardinreapingincrementalbenefitsfromthefast-growingretailmediamarket.

Inthisreport,weexploretheUSretailmediamarketfromtheperspectiveofbrandadvertiserstounderstandhowretailerscanimprovetheirofferingsandgainacompetitiveedge.OuranalysisisbasedonarecentCoresightResearchsurveyof

advertisingdecision-makersatUS-basedCPG(consumerpackagedgoods)/FMCG(fast-movingconsumergoods)brandmanufacturers.

Thisreportisproduced,andmadeavailabletonon-subscribersofCoresightResearch,inpartnershipwithNIQ,aleadingconsumerintelligencecompanythatpartnerswithglobalconsumergoodscompaniesandretailerstoprovideaforward-looking“FullViewTM”intoconsumerbehaviorthroughcomprehensivedatasetsandactionableinsights.

MarketScaleandOpportunity

Retailmediaisafast-growingmarketintheUSandpresentsanear-$9billionincrementalopportunityin2023alone:

CoresightResearchestimatesthatthemarketgeneratedrevenueof$43.3billionin2022andwillreach$51.9billionbytheendofthisyear.

Figure1.USRetailMediaMarketSize(USDBil.)

YoYgrowth:19.8%

$43.3

$35.3

$51.9

2021

2022

2023E

Source:CoresightResearch

TheUSRetailMediaMarket—UnderstandingtheAdBuyer’sPerspective:CoresightResearchAnalysis

InFigure2,wehighlightthekeythemesthatoursurveydatahaveunveiled,whichwedelveintothroughthisreport.

Figure2.KeyThemesintheUSRetailMediaMarket

Source:CoresightResearch

DeborahWeinswig,CEOandFounder,CoresightResearch|deborahweinswig@

Copyright?2023CoresightResearch.Allrightsreserved.

UpcomingMarketingBudgetsReflectOptimism;DigitalUnderlinesSignificantOpportunity

Theevolutionoftheretailmediamarkethasledbrandadvertiserstoexperimentwithnewerformatsandincludeawiderarrayofpromotionalformatsintheirmarketingmix.Oursurveydatarevealthatoverhalfoftotalrespondentsplanto

spendmoreintheirnextmarketingbudgetthantheyalreadydoacrosspromotionalformats.

?Loyaltyprogrampromotionsandpersonalizedproximitypromotionsaresettoseethemostwidespreadincreasesininvestmentamongbrandadvertisers,with57%ofoursurveyrespondentsreportingthattheywillincreasetheirinvestmentlevelineachofthesetoolsintheirnextmarketingbudget.

Thesefindingsalignwiththemarkettrendofcontinuedimprovementsinloyaltyprogramsandhighlightadvertisers’

increasingappetitetoprovidepersonalizedoffers.Withthehelpofloyaltyprograms,brandadvertiserscanharnessthe

powerofretailers’first-partydataandofferengagingandrelevantadstoshoppersinahighlypersonalizedway.In

addition,anincreasedfocusonpersonalizedproximitypromotions—offeringpersonalizedandtargetedadsbasedonhowcloseaconsumeristoaspecificlocation—reinforcestheimportanceofpersonalizationforbrandadvertisers.Toenhancepersonalizationandlocationrelevance,retailersshouldconsiderpartneringwithlocationanalyticscompaniesthatsupportlocalizedtargeting,whichcanimprovereturnonadvertisingspend(ROAS)forbrandadvertisers.

Morebrandadvertisersplantocutbackonspendingonin-storeformats(promotionsanddigitaldisplays)thaninanyothercategory,underliningtheincreasingimportanceofthedigitalchannel.Evenmajorretailersthathaveahugestorefootprintareturningtodigital:DollarGeneral’sretailmediaarmpartneredwithMetainMarch2023toenableadvertisersto

leveragetheretailer’sfirst-partydatatoreach90millionuniquecustomerprofilesthroughanarrayofplacementsonsocialmediaplatformsFacebookandInstagram.

Figure3.SelectedPromotionalTools:PlannedChangeinInvestmentLevelsintheNextMarketingBudget(%ofRespondents)

Note:“Don’tknow/can’tsay”notcharted

Orderinginthechartisbasedon“higherthancurrentallocation”percentages,highesttolowest

Base:100CPG/FMCGbrandmanufacturersintheUS,surveyedinAugust2023

Source:CoresightResearch

DeborahWeinswig,CEOandFounder,CoresightResearch|deborahweinswig@

Copyright?2023CoresightResearch.Allrightsreserved.

Reducecaserates

Reducefixedtradebudget

Reducein-store

merchandisingexpenses

Reducethenumberoffreeunits

MarketingBudgetMixContinuesToBeinFlux

Thereisalotofmovementwithinadvertisingbudgetsassomecategories,includingretailmedia,areprovingtobemoreeffectiveintermsoftargetingandreturnsthanothers.Whiletradebudgetshavetraditionallybeenverysizeable,brandadvertisersappeartobemoremindfulofhowtheyexpecttospendtheirtradeandbrandadvertisingbudgets.Oursurveyfoundthatbrandmarketersareshiftingsomeoftheirtradeandbrandmarketingbudgetstodigitaladvertisingthrough

retailmedia:

?94%ofrespondentsreportedthattheywouldfundretailmediaadvertisingwithtrademarketingdollarsintheirupcomingmarketingbudget.

?Themostpopularmethodofdoingsoistoreducecaserates(discountsatwhichamanufacturersellsproductcrates/casetoretailers),citedby68%ofrespondentsthatplantoreallocatefunds,followedbyreducingfixedtradebudgets(59%)andreducingin-storemerchandisingexpenses(57%).

Itwillbeimportantforretailerstoaddresstheseshiftsastheyshouldexpecttoseelessfavorablediscountsfrombrandmanufacturers.

Figure4.WhetherBrandAdvertisersPlanToFundRetailMediaAdvertisingwithTradeMarketing(Left)andMethodsTheyWillUseToReallocateTheseFundsintheNextMarketingBudget(Right)(%ofRespondents)

No,5%

say,

Don'tknow/Can't1%

Yes,

94%

Brandadvertisersaremovingtheirmarketingbudgets

acrosscategories—withthevastmajorityfundingretail

mediawithtrademarketing

68%

59%

57%

53%

Base:100CPG/FMCGbrandmanufacturersintheUS(left),94ofwhichplantofundretailmediaadvertisingwithtrademarketing(right),surveyedinAugust2023

Source:CoresightResearch

Weareseeingretailersexpandtheirretailmediaofferingtoattractbrandadvertisers.Forexample,Walmartannouncedtheexpansionofitsin-storeadvertisingcapabilitiesinAugust2023toincludemoreadsonin-storedisplaysand30-secondradiospots,whichtheretailerplanstomakeavailabletobrandadvertisersbytheendof2023.Similarly,inamoveto

simplifytheactivationandmeasurementofadcampaigns,KrogerannouncedinJune2023thatitisbuildinganin-houseadvertisingplatformthatwillbeavailabletoallitsbrandadvertisingpartnersbytheendof2023.

BrandAdvertisersAreUsingMultipleRMNs

ThelargenumberofRMNsinthemarketmeansthatthereisalotofchoiceforbrandadvertisers,makingitmoreimportantthaneverforretailerstodifferentiatetheiroffering.OursurveydatarevealthatbrandadvertisersusemultipleRMNs(as

showninFigure5):

?Onaverage,brandadvertisersusedsixRMNsinthepast12months.

?Almosteverybrandadvertiser(96%)usedatleastthreeRMNs,andnearlyhalf(46%)usedatleastsixRMNs,inthepast12months.

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1–2

3–5

6–8

Morethan8

35%

50%

WeexpectbrandadvertiserstocontinuetoleverageRMNsextensivelyastheyshifttheirfocustoretailmediatodrivesalesandbetterunderstandwhichchannelandtouchpointledtoasaleviaretailmedia’sclosed-loopattribution.However,we

expectbrandadvertiserstolimitthenumberofRMNstheyuseoncetheyhaveidentifiedtheiroptimaladvertisingmediamix—resultinginamorecompetitiveenvironmentforretailersthatofferRMNs.

Figure5.NumberofRMNsThatBrandAdvertisersLeveragedinthePast12Months(%ofRespondents)

4%

11%

BrandadvertisersusedsixRMNsonaverageinthepast12months

Base:100CPG/FMCGbrandmanufacturersintheUS,surveyedinAugust2023

Source:CoresightResearch

GapsExistintheFast-GrowingRetailMediaMarket

Therearemultiplechallengesandshortfallsintheretailmediamarket.Oursurveydatarevealthatthemostwidespreadchallengeamongbrandadvertisersisalackofcollaborationwithretailers:62%ofrespondentsrankedthisasoneoftheirtopfiveretailmediachallenges,andweightedaverages(whereRank1carriesthehighestweight)alsoshowthatalackofcollaborationisthemostchallenging,asshowninFigure6.

Throughenhancedretailer-suppliercollaboration,improvedbusinessoperationspositivelyimpactaroundone-fifthoftotalrevenueforretailersandsuppliers,accordingtoa

previousCoresightResearchstudy.

Furthermore,collaboratingthroughdatasharingcanhelpsolveotherchallengessuchasbrandadvertisers’inabilitytotrustROAS.

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Copyright?2023CoresightResearch.Allrightsreserved.

Figure6.TopChallengesinWorkingwithRMNs(%ofRespondents)

BrandadvertisersaremostchallengedincollaboratingwhenworkingwithRMNs

MostChallenging

Lackofcollaborationwithretailers

Skewedcontroloncampaignperformanceinretailers’favorInabilitytoseparatein-storeshelfpromotionsfromretailmedia

Lackofreportingstandardizationacrossretailers

FragmentedconsumerdataandinsightsInabilitytotrustreturnonadspend(ROAS)Lackofreal-timedataandinsights

Inabilitytoself-servecampaigns

16%16%

9%10%11%

10%12%15%

13%9%11%

16%6%4%6%

11%13%11%

5%7%6%8%6%

3%10%7%5%5%

4%4%

10%

12%

12%

12%

11%

11%

11%

8%

7%

5%

Totals

62%

53%

52%

52%

44%

43%

32%

30%

LeastChallenging

Rank1Rank2Rank3Rank4Rank5

RespondentswereaskedtoselectandrankthetopfivechallengestheyfacewhenworkingwithRMNs,withRank1beingthemostchallengingfactor.Base:100CPG/FMCGbrandmanufacturersintheUS,surveyedinAugust2023

Source:CoresightResearch

SolvingforChallengesCanPositivelyInfluenceAdvertisers’SpendonRMNs

Itispivotalforretailerstoensuretheyprovideacompetitivereturnoninvestmentandadifferentiatedofferingtobrandadvertisers.Whilechallengesexist,oursurveydatarevealthatsolvingthesechallengeshasadirectpositiveimpacton

advertiserspend:

?Trustandcollaborationhavethemostwidespreadpositiveinfluenceonbrandadvertisers’spend,with99%of

respondentsreportingthattrusthasatleast“some”positiveinfluence.Webelievethatfosteringtrustwillrequiresolvingforintrinsicretailmediachallenges—retailersmustnotworkinsiloesandneedtoensurethattheir

attributionmetricsareclear,channel-specificandeasy-to-understand.Infact,thethird-mostinfluentialfactoronadvertiserspendisbrandadvertisers’trustandrelianceonretailerdata,citedashavingatleast“some”positiveinfluenceby98%ofrespondents.

DeborahWeinswig,CEOandFounder,CoresightResearch|deborahweinswig@

Copyright?2023CoresightResearch.Allrightsreserved.

Figure7.TopFiveRMNAttributesThatHavetheStrongestPositiveInfluenceonAmountSpentonRMNs(%ofRespondents)

TrustiskeytopositivelyinfluencingRMNspend

9%

40%

50%

Trustandcollaboration

39%

15%

44%

Breadthofdata(numberofmetrics)

42%

42%

14%

Reliability/trustonretailers’data

12%

35%

51%

Real-timeavailabilityofdata

36%

48%

13%

Abilitytounderstand/influencehowperformancemetrics

arecalculated

ExtremelyStrong

SomeStrong

Total

99%

98%

98%

98%

97%

Totalsrepresentproportionsofrespondentsthatcitedeachattributeashaving“some,”a“strong”oran"extremelystrong"positiveinfluenceontheamounttheyspendonRMNs

Base:100CPG/FMCGbrandmanufacturersintheUS,surveyedinAugust2023

Source:CoresightResearch

Buildingtrustisanongoingexercise,notsomethingthatcanbeachievedinstantly.Meaningfulstepsthatretailerscantaketobuildtrustamongbrandadvertisersincludeofferingasharedcollaborationplatformtoenablereal-timecommunicationanddatasharing.Sharingreal-timedatahasnumerousbenefitsforbrandadvertisers,too:itcanhelpidentifywhyanad

campaignmaynotbeworkingandofferinsightsontypesofshoppersthatareinteractingthemostwithads,forexample—fundamentallyenablingthemtomakedecisionsmorequicklytogetthemostoutoftheirinvestments.Additionally,brandadvertiserscanchoosetoshowcasetheiradsonaspecificplatformorchannelbasedontheperformanceoftheiradacrosschannels.

AsshowninFigure8,oursurveyrevealedthatlessthanone-quarterofretailerssharedataandanalysiswithbrand

advertisersinrealtimeduringadcampaigns.Amongsurveyedbrandmanufacturersthatdonotreceivedatainrealtime,amassive97%reportedthatreal-timedatasharingwouldpromptthemtoincreasetheiradvertisinginvestments.

Figure8.TimeatWhichRetailersShareDatawithTheirBrandAdvertisers(Left)andWhetherReal-TimeDataSharingWouldIncreaseAdvertisingInvestments(Right)(%ofRespondents)

Duringanyadcampaigninrealtime

Rightaftercompletionoftheadcampaign

Aweekormoreaftercompletionoftheadcampaign

23%

21%

56%

No,1%

Don’tknow/ Can’tsay,1%

Yes,

97%

Percentagesmaynotsumto100%duetorounding

Base:100CPG/FMCGbrandmanufacturersintheUS(left),77ofwhichdonotreceivedatainrealtime(right),surveyedinAugust2023Source:CoresightResearch

DeborahWeinswig,CEOandFounder,CoresightResearch|deborahweinswig@

Copyright?2023CoresightResearch.Allrightsreserved.

Digital/physicalcoupons

67%

66%

Brandadvertisers

expectaholistic

retailmedia

offeringwith3.4

promotional

tools,onaverage

Social

LoyaltyprogramPersonalizedproximity

In-store

promotionspromotionspromotions

promotions

In-storedigitaldisplays

RetailersShouldFocusonProvidingaHolisticRetailMediaOffering

Brandadvertisersexpectwide-rangingpromotionalformatsfromRMNs,accordingtooursurvey:

?Brandadvertisersexpectaroundthreepromotionaltools(3.4),onaverage,fromRMNs.

?Thetoptwotoolsexpectedbybrandadvertisersaredigital/physicalcouponsandsocialpromotions,eachcitedbyaroundtwo-thirdsofrespondents.

Retailersshouldlooktooffermultiplepromotionaltoolstoprovideamorecompellingandholisticretailmediasolution.Includingawiderangeofpromotions(someofwhichretailersmayalreadybedoing)underretailmediacanallowbrandadvertiserstoattributetheirpromotionalspendstospecificchannels.

Figure9.PromotionalToolsWhichBrandAdvertisersExpectToBeaPartofRetailMedia(%ofRespondents)

60%

56%

48%

46%

Respondentscouldselectmultipleoptions

Base:100CPG/FMCGbrandmanufacturersintheUS,surveyedinAugust2023

Source:CoresightResearch

Self-ServePlatformsIncreasetheLikelihoodofEarningIncrementalDollars

Mostbrandadvertisers(95%inoursurvey)areusingnon-digitalcouponsintheirmarketingmix.Thechallengewithdoingthisisthataretailermaymissoutonfirst-partydata/insightsonconsumers(astheyarenotloadedintouseraccounts)andattributionmaybechallengingforbrandadvertisers.

Transitioningtomoredigitalcouponscanstrengthenretailers’first-partydataastheycanbeincorporatedintoretailers’loyaltyappandimprovebrandadvertisers’understandingofROAS.Brandadvertisersunderstandtheopportunitythatdigitalchannelshold,andacentralizedself-serveplatformcanbeabiginfluenceinretailersswitchingfromphysicaltodigitalcoupons.Oursurveydatarevealthatamongthebrandadvertisersthatcurrentlyusenon-digitalcoupons:

?96%woulddiverttheirmarketingbudgetsfromnon-digitalcouponstodigitalcouponsiftheywereabletotargettheiraudienceviaaself-serveplatform.

?91%wouldbemorelikelytodomoreretailer-specificoffers(versusnationallyavailable)iftheyhadmorecontrolovertheprocessviaaself-serveplatform.

Webelievethatthesefindingshighlighttheunderlyingdesireamongbrandadvertiserstohavemorecontrolover

marketingcampaignsandofferamorepersonalizedexperiencetotheirshoppersthroughimprovedtargeting.Retailersshouldcontinuetoincorporateawidevarietyofadformatsthroughouttheshopperjourney,andtheycandrivesalesthroughexclusiveoffersbygivingbrandadvertisersmorecontrol.

WhatWeThink

Retailmediapresentshugeopportunityforbothbrandadvertisersandretailers,butcompaniesmustrealizethatthe

marketisfarfrommatureandisdevelopingquickly.Whiletherewillbeongoingopportunitiesinthemarket,fewarelikelytotranslatetolong-termtrends;retailersmustbeproactiveincapitalizingonbuddingtrends.Havingacommunicationanddata-sharingportalthatenablesthetransferofinformationinrealtimecangivebrandadvertisersmorecontroland

confidenceinanRMN.Allowingthemtomakereal-timechangestotheiradcampaignsbasedonreportingmetricscanfurtherbenefitROAS.

November2，2023

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Copyright?2023CoresightResearch.Allrightsreserved.

ImplicationsforBrandsandRetailers

?Theretailmediamarketisgrowingquickly,andoptimismaroundincreasingadvertisingbudgetsmeansthatthereisalotofopportunityforretailerstoofferadifferentiatedsolutionandattractmultiplebrandadvertiserstotheirplatform.

?Movementofbudgetsacrossadvertisingstrategiesmeansthatbrandadvertisersarechannelingtheirfocustoretailmediaandaretryingtoaddfundstotheirretailmediabudgetfromsourcessuchastrademarketing.

Retailersmustfocusonstrengtheningthepositioningoftheirretailmediaofferingtoattractnewretailmediadollars.

?Brandadvertisersarechallengedincollaboratingwithretailers.Bybuildingalong-termpartnershipthrough

fosteringtrustandsharinginsightsanddatathroughtheirRMNs,retailerscandriveloyaltyfrombrandadvertisers.

?DatasharinghasapositiveinfluenceonRMNspend,presentingrevenueopportunityforretailers.Real-timedatasharingthroughasharedplatform/dashboardenablesbrandadvertiserstounderstandhowtheircampaignis

performingandmakechangesduringanyongoingadcampaign.

?Brandsexpectaholisticretailmediaoffering.Retailersshouldleveragefirst-partydataandprovideflexibilityandcontrolforbrandadvertisersonhowandwheretheywanttoplacetheirads.

RetailersPoisedToGainAdvantage

?Well-positionedretailersintheretailmediamarketarethosewithlargestorefootprintsthatalsoincorporatedigitalplatformsintheirretailmediachannelsandfocusondiversificationintheirRMNs.

?RetailersincludingWalmartandDollarGeneralhavetakenmeaningfulstridestow