Dentsu Executive Calls For Holistic Retail Media Approach
Agency executives are pushing for a more comprehensive approach to retail media, considering both upper- and lower-funnel marketing efforts. This shift may lead to more efficient and effective advertising strategies.
Original reporting · digiday.com
Original: “Agency execs call for retail media to be holistically considered beyond the lower funnel”
Read “Agency execs call for retail media to be holistically considered beyond the lower funnel” at Digiday →
How this was written. GMS Agency Desk wrote this article with a language model from Digiday’s reporting (model: @cf/meta/llama-3.3-70b-instruct-fp8-fast); it describes that reporting rather than adding to it. The original, linked above, is the full story.
Key points from Digiday’s report
- Retail media is expanding rapidly, with new opportunities for closed-loop measurement and upper- and lower-funnel marketing efforts.
- The in-store side of retail media has significant growth potential, with over 80% of sales occurring in-store.
- Websites remain a crucial part of an overall commerce strategy, requiring coordinated messaging across marketing channels.
- Upper-funnel brand-building is essential in retail media, with creative playing a key role in driving incrementality and efficiency.
- AI-powered Media Mix Modeling (MMM) is expected to help bring down costs in retail media.
Retail media is expanding rapidly, offering new opportunities for media agencies to harness closed-loop measurement and benefit both upper- and lower-funnel marketing efforts, according to Digiday. Dentsu's president of commerce, North America, Aisha Khan, discussed the potential of retail media at Digiday's Media Buying Summit.
Khan believes that the in-store side of retail media has significant growth potential, citing the fact that over 80% of sales occur in-store, yet less than 5% of retail media is spent on in-store media. This disparity presents a major opportunity for retailers to digitize the physical experience and drive growth in retail media.
Instrument CEO Laurel Burton also spoke at the summit, arguing that websites are a crucial part of an overall commerce strategy and should not be overlooked. Burton predicts that websites will remain a central hub for creating a consistent experience, feeding both consumers and search engines.
Crocs CMO Carly Gomez elaborated on Burton's position, emphasizing the need for coordinated messaging across marketing channels, including websites, social media, and e-commerce platforms. This cohesion is essential for delivering a seamless experience to consumers.
Dentsu's Khan also highlighted the importance of upper-funnel brand-building in retail media, citing examples of retail media network providers like CVS and Kroger that are pushing creative boundaries. Khan argues that the power of creative in retail media should not be forgotten, as it is essential for driving incrementality and efficiency.
The use of AI-powered Media Mix Modeling (MMM) is expected to help bring down costs in retail media, according to Khan. As consolidation reduces the number of retail media networks, advertisers are investing in their own capabilities to measure closed-loop performance, potentially compressing data CPMs charged by retailers.
The retail media landscape is evolving rapidly, with nearly 30% of holiday budgets expected to be spent by the end of October. As the industry continues to shift, retailers and advertisers must adapt to new trends and technologies, including the use of AI and unified measurement.
Questions and answers
What is the current state of retail media?
Retail media is expanding rapidly, with new opportunities for closed-loop measurement and upper- and lower-funnel marketing efforts.
Why is the in-store side of retail media important?
The in-store side of retail media has significant growth potential, with over 80% of sales occurring in-store, yet less than 5% of retail media is spent on in-store media.
How will AI impact the retail media landscape?
AI-powered Media Mix Modeling (MMM) is expected to help bring down costs in retail media, as advertisers invest in their own capabilities to measure closed-loop performance.
