The retail media boom shows little sign of slowing down, as eMarketer’s latest forecast projects the category growing from 14.1% to almost 25% of all US media ad spend by 2028.
According to eMarketer: “More budget is migrating into off-site channels such as connected TV (CTV) and web publishers’ display inventory.”
According to Chris Feo, SVP of Global Sales at Experian, retailers will begin to function as tech companies and AI will drive the movement even higher.
Challenges and Evolution in the Commerce Media Space
Companies like Marriott, Best Buy, and Target, which were originally established to sell products and services, are now evolving to become ad tech entities.
This transition requires changes in talent, DNA, technology, and data management practices, Feo thinks.
“I think over the next six, 12 and 24 months, we’re going to see a lot of these companies truly look like ad tech entities,” he says in this video interview with Beet.TV editorial director Lisa Granatstein.
Harnessing the Power of First-Party Data
First-party data plays a crucial role in enhancing the customer experience and enabling targeted advertising.
Artificial intelligence (AI) can transform that data into predictions, outcomes, content and experience.
Feo says AI can help predict consumer actions based on first-party data, enabling brands to deliver targeted advertisements and personalized experiences.
“You integrate AI or kind of predictions across all of that and it becomes a very powerful vehicle,” he says.
Benefits for Consumers and the Ecosystem
As commerce media networks continue to evolve, Feo is excited about the potential benefits for consumers.
The integration of advertising, engagement, and the ability to purchase products seamlessly is expected to lead to a closer alignment between consumer transactions and expectations.
Feo hopes the development may also help address some of the challenges faced in the advertising industry regarding privacy and consumer perceptions.
You’re watching “Why Relevance Rules in Ecommerce, a Beet.TV Leadership Series presented by Rokt”. For more videos from this series, please visit this page.
