Retail Media Networks Perception - Episode 236

INTERVIEW WITH ANDREW LIPSMAN

DESCRIPTION

In today’s podcast, we are talking with a returning guest, Andrew Lipsman, about the Insider Intelligence report he authored entitled Retail Media Networks Perception Benchmark 2022. This report was launched in March 2022 and was designed to get an expansive view across retail media networks and ensure different types and categories of them are taken into account.

Make sure you tune in to find out more!

Andrew Lipsman is a Principal Analyst at Insider Intelligence, focusing on retail and ecommerce. Recent coverage includes grocery ecommerce, retail media networks, D2C brands, social commerce, holiday shopping, and Amazon Prime Day. Previously, Andrew was SVP of Marketing & Insights at comScore. He has been a regular contributor to the Journal of Advertising Research and is frequently quoted by leading news organizations including the New York Times, Wall Street Journal, and Advertising Age. Andrew is the author of the Insider Intelligence report, Retail Media Networks Perception Benchmark 2022, which launched in March 2022.

“I’ve talked about retail media as the third wave of digital advertising after search and social. [...] I think this third wave is destined to ultimately be the biggest.”

— Andrew Lipsman

KEY TAKEAWAYS

Retail Media Networks Perception Benchmark was a B2B survey of 145 brands and agencies, and two thirds were from large brands with at least $500 million in annual revenue.
The brands were asked about 13 different attributes of importance:
- Number 1 was traffic scale. The next few dimensions were traffic quality and ad relevance.
- Though it was surprising that ROAS wasn’t a little higher on the list, it’s probably a good thing that brands aren’t looking strictly through a ROAS lens.
- Off-site targeting - working with 3rd party publishers - is not a strong priority, though eMarketer’s retail media advertising forecast pegs that at about 10% of the total revenue in that space today.
Advertisers might be underappreciating the importance of offline sales (there are silos between online and offline data) and off-site targeting. The offline data needs to become live and actionable, though it’s a question of how fast that might happen.
Retail media networks are competing amongst each other as well as with other advertising channels (paid social, display, etc), and they’re just getting started. There is a lot of untapped potential, expecting $10 billion of new spend to come in in 2022, 2023 and 2024.
Retail media sits at the intersection of three massive marketing dislocations: declining TV ratings, deprecation of 3rd party identifiers in digital, and the digitization of the store. They are also starting to unlock national media budgets, and more recently trade/shopper, and still believe there’s huge upside from both those buckets.
Andrew had a session at Shoptalk on this topic with Todd Hassenfelt from Colgate-Palmolive, and spent a lot of time talking about retail media with attendees. Some of the most important themes were:
- Importance of Offline sales data - the single most important growth lever for retail media.
- In-store digital media - digital signage, retailers having different networks, advertising where it’s contextually important.
- International RMN excitement - specifically in Latin America, South East Asia, and France.
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