In 2021, digital advertising accounted for well over half of global ad spending, with retail media networks benefiting in a major way.

Retail media are ads that show up on retailers' websites, apps, or marketplaces like Amazon. The retailers that host those ads are the retail media networks.

Advertising within retail media networks is hugely beneficial for brands for many reasons.

1. As third-party cookie data is being phased out, leveraging the first-party data collected on buyer behavior is a gold mine for brands. Not only is the data reliable but also future-proof.
   
   
2. The level of personalization that can be achieved is a consumer's delight, giving them the opportunity to engage with the ad. Personalization increases sales, improves ROI, and makes the customer experience seamless.
   
   
3. The timing of ads allows you to target a consumer who is in the mood to shop, increasing conversions since they're already on the site.
   
   
4. You can accurately track the impact of your ads since impressions and sales take place on the same platform. A clear insight to help with optimization.

As more brands take advantage of these placements, you can expect to see a competitive marketplace environment blossom.

But could retail media be too good?

The retail media network marketplace is roughly 2 years old and as the market matures, and at a fast pace, old tensions in a brand-retailer ecosystem are rising.

Amazon kicked off the craze and now any company that has a brick-and-mortar store, website, or app is working quickly to set up an ad network like Walmart, Kroger, and Target.

Because of this, there's been a rush to scale, leaving most of the networks remaining fairly basic and not able to live up to the hype.

Regardless of the product, retailers put on a compelling pitch to invest. Issues arise, however, as they're not quick to share the data, and could even manipulate performance since there's no regulation to fact-check. This lack of transparency worries advertisers.

There's also fear that retail media networks will hold too much power, as many brands often need retailers much more than retailers need those brands. 

We think it was the $1.50 hotdogs that made Costco a $190B+ success

The advertising market is facing a recession

Is it time to innovate or rebrand?

Google showed up for Black-owned Friday with shoppable music videos

Budget cuts are happening and brand loyalty is affected by it

Experiences matter more than material goods this holiday season

Twitter is a mess - How will you choose where to allocate your spending?

E-commerce is suffering in a post-pandemic world

Mastodon is growing in popularity as people flee Twitter

Optimize your digital marketing campaign for a shifting SEO landscape

The global media supply chain gets a little greener