SANTA MONICA, CA – Retailers that sell advertising offer brands another way to reach consumers as they shop online and in stores. These retail media networks not only can help to drive sales, but also to raise awareness for a broader range of products and services.
“You’ve also got some of the media networks that are moving into CTV and making those deals, whether that be with Roku or Disney…so going where attention is and then also going into store,” Jill Cruz, executive vice president of commerce strategy at Publicis Groupe, said in this interview with Beet.TV contributor Rob Williams at the Beet Retreat Santa Monica.
“A lot of footfalls are still happening in the store,” Cruz said. “In fact, the majority for a lot of our clients are in-store.”
Ecommerce marketplaces such as Amazon, mass merchandisers such as Amazon, Walmart and Target and grocery chains such as Kroger and Albertsons have established retail media networks. Other more specialty retailers such as Sephora and Ulta Beauty also are getting into the game.
“They have national footprints and so they can be big,” Cruz said. “They can get scale. Dollars will flow to them eventually.”
Funding Challenge
Fragmentation within the market of retail media networks is likely to create challenges for some retailers as advertisers continue to seek to narrow their numbers of media partners.
“The challenge will be with all of these different retail media networks is in the funding sources,” Cruz said. “You’ll continue to see some of them funded in the same way that they’ve been funded in the past.”
Budgets for ecommerce advertising and shopper marketing will be significant sources of revenue.
“Also we’ve seen a lot of the funding or funding being requested at the national and the brand level,” Cruz said, “but at some point that’s gonna deplete. We can’t just take every linear dollar and move it into retail media.”
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