Teresa Aprile, Co-Founder and CEO, Brandcrush
Grocery retailers will need to employ omnichannel retail media technologies to manage their entire 360-degree retail media ecosystem to maximize their revenue potential.
The focus to identify and align marketing efforts that drive the greatest conversion, in-store, out-of-store and online, is driving a need for a complete 360-degree view of the shopper. Retailers also seek a consolidated approach to retail media across the entire ecosystem to drive efficiency and scale.
On-site and off-site platforms have driven scalable transparency and execution. By contrast, in-store, out-of-store and other online media channels have not been so scalable and seamless. Managing omnichannel media involves multiple stakeholders, disparate processes and systems, many of which are still manual. These complexities, inefficiencies and silos have limited retailers’ ability to scale.
Omnichannel retail media technology will drive transparency both internally and externally. This technology removes many silos across the merchandising, e-commerce and shopper marketing teams, which unlocks further scalability and revenue maximization.
The digital management of all owned media assets, in-store, out-of-store and online, can drive significant margin point gains for retailers, and boost control and ownership of their media ecosystem.
The right omnichannel retail media technology can empower retailers to grow their top and bottom lines by maximizing their media opportunities and efficiencies by:
- Efficiently connecting omnichannel media buyers and sellers across the retailer ecosystem, including merchandising, marketing and retail media teams.
- Powering long-tail supplier monetization, allowing retailers to service small and medium enterprises and mid-market brands, along with larger players with self-serve and scalable solutions.
- Adopting an end-to-end approach to owned media across the ecosystem and integrating partners to drive a single centralized solution.
- Powering retailers to better serve their suppliers and collaboratively develop investment strategies that yield high returns with closed-loop reporting.
Retailers have a sizable retail media opportunity ahead of them, but the fragmentation that exists in their media ecosystem limits their revenue potential.
According to Forrester, on-site and off-site retail media is worth around $50 billion. Estimates say that this area of retail media will grow by 25% per year to $100 billion over the next five years and will represent more than 25% of digital media spend.
This estimate, however, excludes all other forms of shopper marketing media available by retailers to endemic and non-endemic brands, including in-store, out-of-store and other online assets. With the digitization of assets across all channels, the staying power of some traditional forms of media, and a need for CPG brands to drive marketing dollars closer to the point of purchase, we estimate the total omnichannel owned media market opportunity to upwards of $300 million.
Retailers need to focus efforts to counter global inflation forces, rising costs and an overall decline in margin. An omnichannel retail media strategy can yield high margin returns for retailers.
With brands actively moving marketing budgets as close to the point of purchase as possible, any retailer that is not actively planning for a 360-degree approach to their retail media opportunity will miss out on an extremely lucrative opportunity.
It’s no longer a matter of why or when, but how and what are the best technology partners for retailers to scale with to fuel retail media growth.