As the world moves away from cookies and MAIDs diminish in importance, it's becoming trickier for online advertising platforms to track consumer actions post-ad-viewing. In a data-scarce landscape, retail media holds a lot of promise. It has a distinct edge by seamlessly connecting advertising expenditure to online purchases.
Retail media networks are evolving as crucial players in the digital ad realm post-cookie era. According to eMarketer, by 2023, U.S. retail media networks are anticipated to hit a whopping $52 billion in ad sales.
What we're witnessing is the transformation of scattered retail media assets into comprehensive retail media networks. These are then integrated into the programmatic marketplace, marking an exciting shift in AdTech. One of the examples of RMN-focused tools are those that rely on deterministic first-party data for user identification.
So, What Exactly Is a Retail Media Network?
Imagine a platform where retailers allow brands to advertise across their digital spaces — be it their website, app, or emails. This is the essence of a retail media network, it's like the online counterpart of ads you see in brick-and-mortar stores.
These digital ads can vary in style and can be strategically placed to engage potential buyers at every step, from mere contemplation to final purchase.
Why Are RMNs in Vogue Right Now?
As data privacy becomes a hotter topic, the advertising realm is undergoing significant changes.
Key players like Google and Meta, which relied heavily on third-party data, are now feeling the heat. The traditional model is quickly becoming dated, making room for entities with ample first-party data to devise targeted advertising strategies in their own domains.
Retail media networks are burgeoning in the AdTech space. With the changing dynamics in data privacy regulations, e-commerce platforms rich in first-party data are primed to launch their advertising ventures.
The sky's the limit for retailers with ad spaces and AdTech entities offering media buying capabilities in this realm. RMNs are one of the most exciting trends in AdTech, set to evolve and transform the e-commerce landscape.
— Maria Novikova, CMO, Xenoss