Retail Media 2024 recap with Andrew Lipsman - Media, Ads + Commerce
Dec 25, 2024
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Andrew Lipsman, Founder of Media Ads & Commerce, shares his deep insights on the evolution of retail media networks. He discusses the major shifts of 2024, including how retailers are embracing RMNs as authentic media channels. Lipsman also reveals findings from a recent survey on RMN spending, motives behind it, and the urgency for marketers to adapt to these changes. The conversation highlights the pivotal role of data-driven marketing and the importance of understanding new advertising strategies in a rapidly transforming retail landscape.
Retail Media Networks are evolving as retailers transition into media entities, yet many face internal resistance in integration.
Brands are realigning their retail media strategies to incorporate upper-funnel tactics, emphasizing the importance of first-party data usage.
Deep dives
The Rise of Retail Media Networks (RMNs)
Retail Media Networks (RMNs) have gained significant traction in recent years, driven largely by the success of platforms like Walmart Connect and Amazon. Retailers are now recognizing the need to evolve into media companies as they grapple with the increasing demand for media capabilities from stakeholders, including investors. Despite this shift, many retailers face resistance in integrating media and merchandising, as their core competencies traditionally lie in retail operations. The 2025 outlook indicates that a critical transition is underway, where retailers may finally embrace their media potential, but this will require overcoming internal organizational barriers.
Understanding Retail Media Investments
Brands are currently re-evaluating their retail media investment strategies, particularly in anticipation of 2025's full-funnel evolution. A recent survey aimed at assessing the retail media landscape highlights the need for brands to use first-party data more effectively in their marketing efforts. The survey gathered insights into where brands are reallocating budgets, focusing on obtaining national media dollars instead of merely shifting funds within trade and shopper marketing. As a result, brands that have historically focused on the bottom of the sales funnel are now realizing the importance of integrating upper-funnel strategies to reach consumers at various points in their purchasing journey.
Challenges and Opportunities in Execution
Execution remains a critical challenge for many brands and agencies when it comes to effectively utilizing retail media networks. While familiarity with larger platforms such as Amazon and Walmart is growing, there is still room for improvement in driving optimal outcomes from these channels. The industry has not yet reached maturity; many brands are still learning how to best navigate the complexities and differences among various RMNs. As brands prioritize execution strategies, the opportunity for incremental growth through innovative retail media tactics becomes increasingly important.
The Future of In-Store Retail Media
In-store retail media is emerging as a significant growth area, despite its underdeveloped status in the U.S. market compared to international markets. Retailers must overcome internal resistance and organizational friction to capitalize on the potential of in-store media, including utilizing high-visibility advertising space to influence consumers at the point of sale. As brands and retailers begin to see the value in in-store digital experiences, there's potential for transformative growth in retail media, integrating campaigns that effectively engage customers both online and offline. The shift toward embracing in-store media could unlock substantial untapped revenue opportunities for both retailers and brands alike.
The CPGGUYS are joined in this episode by industry analyst Andrew Lipsman. With a decade plus of observing and analyzing the omnichannel market and retail transformation, he is arguably one of the most revered analysts of our time. We have a deep dialogue on the year that passed us by and who the retail media winners were and how they ascended to leadership.
Follow Andrew Lipsman on Linkedin : https://www.linkedin.com/in/andrew-lipsman-10b2162/ Follow Media, Ads and Commerce on Linkedin : https://www.linkedin.com/company/media-ads-commerce/ Follow Media, Ads and Commerce online : https://mediaadsandcommerce.substack.com/
To register for the CPG industry's first exec ed program on retail media at Cornell : https://ecornell.cornell.edu/certificates/marketing/retail-media-strategy/
We discuss : 1. So as 2024 comes to an end. RMN’s continue to be top of mind, most of the industry doesn’t truly understand it - what is a quick summary of 2024 and RMN’s? 2. You just conducted a simple survey on RMN spend, and quite a few respondents came back with answers. What’s the motivation behind why a survey now and what did the survey focus on? 3. You travel quite a bit to retail and brands and I see you at all major conferences. Was 2024 the year where merchants started embracing RMN, accepting it and have we reached the stage where merchants and RMN’s are treating RMN like true media driving traffic vs lower funnel? 4. Where is the industry’s marketers these days on RMN? Have CMO’s and VP of brand marketing embraced RMN and investing for brand development vs only lower funnel?. 5. RMN’s and overall investments. Is the mood today to still be gung ho or operationally metrics driven? How do you feel about measurement and metrics overall in this space? 6. Ad inventory is another challenge - many commitments start with numerical agreements but not sufficient inventory to justify the investment at a given RMN - are we mature in inventory ? 7. You've been a strong advocate for in-store retail media. Is this market finally ready for primetime? What’s new, what’s happening? 8. What’s next for our industry with AI? Where is the next disruption evolving with RMN and AI?
DISCLAIMER: The content in this podcast episode is provided for general informational purposes only. By listening to our episode, you understand that no information contained in this episode should be construed as advice from CPGGUYS, LLC or the individual author, hosts, or guests, nor is it intended to be a substitute for research on any subject matter. Reference to any specific product or entity does not constitute an endorsement or recommendation by CPGGUYS, LLC. The views expressed by guests are their own and their appearance on the program does not imply an endorsement of them or any entity they represent.
CPGGUYS LLC expressly disclaims any and all liability or responsibility for any direct, indirect, incidental, special, consequential or other damages arising out of any individual’s use of, reference to, or inability to use this podcast or the information we presented in this podcast.
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