Retail media networks attract ‘reluctant buyers,’ ANA finds

Retail media networks might be all the rage for retailers, yet brands buying the media aren’t quite as eager as the retailers selling it. A new report from the Association of National Advertisers analyzes the growing retail media trend. The report, which surveyed 138 ANA members, 80 of whom use retail media networks, over the summer, called advertisers “reluctant buyers” who feel forced into a “have to buy” situation when they invest their budgets with retail media. Some 88% of those surveyed said they are “somewhat or heavily influenced” by retailers to advertise on their networks. Ad Age events Sign up for events and awards Learn more here In addition, advertisers’ spending in retail media comes at the expense of budgets for shopper marketing, brand marketing and trade spending, the report found. Two-thirds of those brands surveyed said their most important objective for retail media was as a sales driver, while only 12% said their most important objective for retail media was brand growth. Just over half of marketers, or 52%, said they expect retail media will become a “valuable marketing tool” in the next two years, compared to the 31% of marketers who say it is currently such a tool. That increase in expectation will come as the trend continues to grow. Ad revenue from retail media is expected to reach $52 billion this year and $61 billion in 2024, the ANA said, citing data from eMarketer. Last year, many retailers expanded their offerings into other media channels such as connected TV and product sampling.Related: 12 retail media network execs to know As retail media continues to evolve, some players are streamlining operating partners by taking more ownership in-house—a trend experts expect to continue as they try to capture greater profits. For example, Lowe’s is bringing the advertising sales and operations department of its One Roof Media Network in-house as of Tuesday, dissolving its deal with Epsilon-owned CitrusAd, the home improvement retailer announced earlier this month. Retail media has its share of challenges. For example, with nearly every major retailer now operating its own network, advertisers may have a difficult time navigating the complex landscape as each offering differs. The ANA survey found that 56% of brands are currently working with at least five different networks; 58% said they expect to be using even more in the next two years. Many experts have also cited the lack of standardization as a potential drawback for brands.

Retail media networks attract ‘reluctant buyers,’ ANA finds

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