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As advertising dollars continue to migrate to digital channels, retail media networks are a powerful way for retailers to tap into new revenue sources and for consumer products companies to reach consumers in new ways.
Retail media’s ascent shows no signs of slowing. What started as an experimental channel a decade ago has ballooned into 150 global networks with a projected annual growth of 12% in the next two years.
By establishing retail media networks, retailers can see profitability margins of over 50%—significantly higher than classical retail—along with real-time insights about consumer preferences that help them close the loop from advertising impression to sale.
estimated increase in spend from 2022 to 2026
Consumer products companies can also reap multiple benefits from retail media’s explosive growth: precise and personalized marketing with high conversion rates, a deeper understanding of the shopper journey, and a cost-efficient test-and-learn mechanism.
Retail media has the potential to be a key source of growth for retailers and consumer products companies alike, but it requires strategy, expertise, and a suite of new capabilities.
Transforming your digital platform into a media network creates a world of possibilities—if you know how to compete. We can help you select the right product mix, define your positioning, assess whether to buy vs. build your platform, determine the optimal commercial go-to-market model, and develop the right talent to launch a successful retail media enterprise.
The proliferation of retail media networks requires you to evaluate new platform options, accelerate test-and-learn experimentation, develop new capabilities, and refine your operating model. We can help you navigate the array of investment decisions and craft a go-forward strategy that will ensure you make the right moves at this pivotal moment.
