New York – September 13, 2023 – Retail Media was one of the fastest growing U.S. advertising channels in 2022, according to a new report by the Interactive Advertising Bureau (IAB) titled “Retail Media 2023: Operational Strategies to Meet the Growth Potential.”

“It’s a sea change in how the biggest advertisers are planning to reach customers,“ said Jeffrey Bustos, VP, Measurement, Addressability, Data Center, IAB. “Retailers have a treasure trove of first-party data that enables advertisers to reach high intent audiences and provide closed loop-measurement, and budgets are shifting accordingly.”

The study, released today at the IAB Connected Commerce Summit: Retail Reimagined, was created in partnership with BWG Strategy, and surveyed 200 RMN ad buyers at brands and agencies, as well as conducted over 30 interviews with senior decision-makers at retailers, brands, agencies, and intermediaries, including demand side platforms (DSPs), supply side platforms (SSPs), and data providers.

“At IAB we have a unique perspective given our experience over the past three decades of digital development, and the ecosystem-wide impact that RMNs are having,” said David Cohen, CEO, IAB. “In some ways, we are reliving the formative years of the ad-supported internet and developing solutions for brands, buyers, ad tech and retailers to grow their businesses responsibly. We can, and are, helping RMNs realize their full potential which is very gratifying.”

Key Findings: Greater Growth Ahead

RMN ad buyers are projected to increase spend by 11% year-over-year in 2023. These are defined as buyers at brands and agencies spending at least $5M on RMNs annually.

• Among those increasing spending on RMNs, investments are expected to rise by nearly 20%.
• Top reasons to buy: reach incremental audiences (55%); leverage retailer first-party data (52%); drive performance (48%); and leverage customer data (45%).
• The Endemic Brand “Spend Tax” Grievance is a myth. Only 28% of buyers cite the requirement to spend as a top reason for buying.
• To fund increased RMN investment, more than half (52%) are reallocating funds from across digital platforms, including social, search, and digital video/CTV while more than one-third (36%) are reallocating funds from linear TV, print and out-of-home.
• Cross-RMN measurement standards and transparency around attribution windows, incrementality, and viewability, for consistent RMN comparisons will significantly help propel ad spend.

Key Findings: Areas of Opportunity

• Retail media can grow even faster, but must first address key ecosystem-wide issues.
• Improving measurement and data collection is the #1 opportunity area identified by buyers.
• Over two-thirds of RMN ad buyers (69%) cited the need to resolve complexity in the buying process. While many RMNs operate in silos and lack automated buying and cross-RMN performance capabilities, some have begun to provide self-service and managed-service activation platforms. Private marketplaces (PMPs) have also begun to emerge.
• Nearly 2-in-3 buyers (62%) cited the lack of measurement standards as a top challenge to continued growth, followed by nearly 60% wanting greater transparency.
• 60% of ad buyers want better collaboration and communication with RMNs. Tellingly, only one in ten (12%) ad buyers are “very satisfied” with their RMN partner relationships and communication.

“Everyone notes a lack of alignment of stakeholders across shopper marketing, performance marketing, brand marketing and beyond” said Jeffrey Bustos, VP, Measurement, Addressability, Data Center, IAB. “There’s a big opportunity for brands to leap ahead of their competition if they do the work to align everyone’s interests and provide a unified point of view and clarity around goals.”

Click here to download “Retail Media 2023: Operational Strategies to Meet the Growth Potential” study.

IAB/MRC Release Retail Media Measurement Guidelines for Public Comment

As found in the IAB Retail Media Network study, there is a lack of consistent measurement across different RMNs that has emerged as a significant challenge.

The wide array of retailer offerings and metrics has led to difficulties in evaluating campaign performance across platforms. The industry is actively addressing this issue, with IAB and Media Rating Council (MRC) working together to establish measurement guidelines through cross-industry collaboration. The working group’s guidelines will be presented for public comment at the IAB Connected Commerce Summit: Retail Reimagined on September 13, 2023, and will be open for 30 days until October 13, 2023.

“Everything we’ve learned in this study points to the fact that the continued growth and success of retail media hinge on achieving measurement standardization,” said Bustos. “That’s why IAB and MRC are working together to identify existing standards, define common metrics, and create guidelines to ensure consistent measurement across platforms, promoting transparency and confidence in retail media investment.”

IAB and MRC developed retail media measurement guidelines, covering numerous aspects including audience measurement, in-store digital placed-based measurements, ad delivery, viewability, incrementality, reporting, and transparency. This methodical approach ensures all key areas are addressed to achieve comprehensive standardization.

To review the IAB/MRC Retail Media Measurement Guidelines and provide feedback, visit http://iab.com/retailmeasurement.

About IAB
The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

IAB Media Contacts
Brittany Tibaldi / Michael Vaughan
347-487-6794 / 813-210-1706
btibaldi@kcsa.com/mvaughan@kcsa.com

The post More than Half of Retail Media Networks Advertisers Are Reallocating Budgets To RMNs, According to New IAB Study appeared first on IAB.

New York – July 26, 2023 – In response to the evolving consumer shopping habits and the increasing convergence of online and offline retail, IAB has introduced the IAB Connected Commerce Summit: Retail Reimagined. This inaugural event taking place on September 13 gathers retailers, marketers, and solution providers in-person in New York City to address the challenges and opportunities presented by connected commerce and retail media.

“No one could have predicted how quickly the commerce experience has changed on all sides of the equation. Consumers, retailers, and the extended digital ecosystem are rapidly evolving to meet this new marketplace dynamic,” said David Cohen, CEO, IAB. “IAB Connected Commerce Summit will make sense of this new landscape for marketers, and deliver innovative insights to maximize the use of retail media networks, capitalize on trends in social shopping, and more.”

Cohen continued, “Retail media networks have exploded over the past few years. For many brands, they are uncharted territory. We’re thrilled to be able to host an event that will help brands and retailers come together, hear from experts, and navigate this new growth engine.”

The IAB Connected Commerce Summit will explore four key themes: data and measurement, new content experiences, the rise of retail media networks, and innovation and technology in commerce. The one-day event will showcase innovative technologies, platforms, measurement opportunities, and data possibilities through forward-thinking keynote presentations and panel discussions. Attendees will learn from thought leaders in e-commerce and retail media about the most impactful strategies to improve the shopping experience, deliver revenue growth, and help marketers revolutionize their marketing campaigns, and remain competitive.

IAB will also be releasing its first-ever comprehensive research study on the retail media ecosystem. The study aims to show how effective communication and collaboration both within and across companies, including retailers, brands, and agencies, are integral to tapping the full market potential of retail media.​​

As part of its mission to continually educate its membership on emerging areas in our industry, IAB has been focused on retail media and will release its retail media measurement standards for public comment at the event.

In addition, IAB’s Retail Media Network Committee recently launched the IAB Retail Media Buyer’s Guide which brought leaders from retail media networks, agencies, brands, and ad tech companies together to develop a playbook for media buyers to understand the full capabilities of retail media onsite, offsite, and in-store.

“One challenge we’ve heard from brands, agencies, and media buyers was a need for consistent measurement, metrics, and outcomes across all retail media networks,” said Jeffrey Bustos, Vice President, Measurement Addressability Data, IAB. “During our IAB Connected Commerce Summit, we will be sharing an update on measurement standards in collaboration with MRC as well as presenting new research to address the issues brands and marketers face when reaching consumers through their shopper journey.”

The event will be held at the Convene on West 46th Street in New York City. To review the full agenda or request a pass (brands and agencies may request a complimentary pass), please visit: https://www.iab.com/events/2023-iab-connected-commerce-summit/

About IAB
The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

IAB Media Contacts
Kate Tumino / Brittany Tibaldi
212-896-1252 / 347-487-6794
ktumino@kcsa.com/ btibaldi@kcsa.com

The post IAB Embraces the Complexity of Commerce and Retail Media; Launches New Event: IAB Connected Commerce Summit: Retail Reimagined appeared first on IAB.