As retail media continues to grow and evolve, the Path to Purchase Institute sought out to take the pulse of the current state of retail media by fielding an online survey (during May 2022) of CPG and durable goods professionals. The research reveals the top players across the landscape, highlighting the companies and networks leading the way, inventory aggregators, third-party sellers and SaaS (software as a service) platform providers.
The report was produced in conjunction with EnsembleIQ Research Solutions, which creates custom and sponsored research for thought leadership, and EnsembleIQ BrandLab, a full-service strategic marketing and creative agency for retail, consumer brands and omnicommerce solution partners.
According to the report, 78% of marketers surveyed said they work with at least one retailer media network. Of that group, 79% said they are working with at least three or more individual networks. For those who work with networks, 57% said they worked with Amazon DSP, and 52% said they worked with Walmart Connect. Other leading networks called out were Kroger Precision Marketing (46%), Target’s Roundel (43%) and Instacart Ads (43%).
“Our research shows that leveraging retail media networks is essential for a brand to thrive, but other tactics such as in-store media/signage and traditional media remain critical, and marketers must adapt their strategic roadmaps for this new age of media,” said Eric Savitch, vice president and brand director, Path to Purchase Institute.
Additional findings include:
When it comes to ranking the value of retailer media network assets for marketing goals, 42% of respondents said on-platform was most valuable, followed by off-platform and integrated assets (each selected by 29% of respondents). When asked which delivered the best ROI, 59% chose on-platform, while 21% said off-platform and 20% said integrated assets.
77% of respondents work with media inventory aggregators (a single point of contact that buys inventory from multiple retailer platforms for the purposes of reselling).
96% of respondents said they worked with third-party media sellers (media providers that are not part of the retailer’s media network and do not have access to the retailer’s first-party data), and most indicated they worked with at least six of these companies.
The top players cited most by respondents included Facebook (54%), Ibotta (46%), Instagram (45%), Google (45%), TikTok (38%), YouTube (34%), Neptune Retail Solutions (34%) and Pinterest (32%).
Half of respondents said they worked with a SaaS platform provider. Pacvue (25%), Perpetua (16%), Marin Software (13%) and Skai (13%) were the providers named most often.
The most important capabilities retailer networks need to offer to deliver an effective campaign include targeting options (77%), data sharing (57%), closed-loop measurement (43%) and goal-based optimization tools (39%), according to respondents.
When asked about the most challenging aspect about working with a retailer media network, 25% of respondents pointed to data and reporting as the leading obstacle. Added cost/ROI, lack of consistency, processes/communication and minimum spend requirements were also cited as other challenges faced most often.
When asked if they thought retail media has become the new slotting fee, 64% of marketers said yes.
11% of respondents believe that metaverse buys will be part of retail media by the end of 2022, and another 62% said they will be in the next two-four years.
Respondents to the Institute’s State of Retail Media research report consisted of CPG and durable goods professionals who were either leading or working in roles for a CPG or durable goods manufacturer that includes branding, marketing or advertising.View the report here.
For Path to Purchase Institute sponsorship opportunities, contact Eric Savitch at [email protected].To learn more about how EnsembleIQ Research Solutions or BrandLab, contact Beth Brickel, vp of research, at [email protected], or Darren Ursino, vp of brand engagement at [email protected].