Retail media is one of the fastest-growing media platforms. So fast, the term "retail media" is now outdated, depending on who you ask. We are now in the era of retail media and commerce media.

Where retail media focuses heavily on the on-site and off-site advertising piece of a retail media network, commerce media doesn’t just focus on the retail space nor exclusively on-site and off-site advertising experiences but rather the end-to-end journey for e-commerce advertising and closed-loop reporting.

So what’s behind this revolution?

Where are retail media networks currently?

And why should you care?

A win-win-win

Before we get into why retail media is growing, it is important to understand what it does for the three different constituents: retailers, brands, and consumers. For retailers, the average gross margin for your business is 20 to 40%, but from the perspective of digital advertising, 70 to 90 %. Incredible numbers, right off the bat.

From the brands' POV, it’s all about engagement. Retail media is lower-funnel advertising, meaning you’re reaching people who are already close to making a purchase. Picture this—your ad engagement skyrocketing by 100% compared to what you’re used to seeing.

And for the consumer, you get to see ads that matter to you—targeted, relevant content that feels more personal. No one likes irrelevant ads, right? Retail media makes sure customers see things they’re more likely to engage with.

All this is great, but where is it headed?

A retail media network is essentially a digital advertising platform set up by retailers to let brands buy ad space across their websites and other channels. The secret sauce? First-party data. This lets retailers and brands connect with consumers at various points in their shopping journey with pinpoint accuracy.

A lot of times when there’s hype surrounding a particular industry, many of us think, could it be a flash-in-the-pan strategy? With over 200 retail media networks and counting (and let’s be honest, it feels like there’s an announcement every day), it is here to stay. Big names like Costco, Chase, and United have all hopped on board.

The market is forecasted to surpass $60 billion in ad spend by the end of 2024. That’s nearly 20% of all digital ad spending!

Brands are noticing, too. A recent Nielsen survey showed that 70% of marketers now see retail media as more critical to their strategy than ever before. And with ad spending projected to jump by $100 billion in the next few years, it’s safe to say retail media is the future, and AdButler is excited to be part of that ecosystem.

You should be too.

The scope of it all

As an advertiser, your goal is simple: get in front of the right people at the right time. Retail media lets you do that by giving you access to audiences with real buying intent—people who are ready to make a purchase. It’s a goldmine!

Think about how changes in internet privacy laws made it harder to track consumers. Retail media solves that issue with first-party data—actual purchase history. No guesswork, just solid data that helps you create more targeted and effective campaigns.

Plus, this closed-loop attribution lets you see exactly how your ads impact consumer behavior. You can track the entire journey, from seeing the ad to making a purchase. No third-party decision-makers? Sweet deal.

The challenges? Well, they’re real

The opportunity is the challenge. With 200 retail media networks out there, your brand faces the tough task of figuring out where to spend its money. And because these networks are so siloed (each one has its own team, data, and infrastructure), it can be hard to tell if your ad spend is truly driving new sales.

For example, let’s say Kenvue (makers of Tylenol and Band-Aids) is advertising on a website like Costco. Costco may say, “Hey, look! You’ve got a new-to-brand customer!” But guess what? That same customer might already be buying Kenvue products from Target.

Was this a new customer, or just someone Costco happened to catch? This disconnect is one of the significant challenges brands are trying to solve.

Teaming up with tech

Yes, this might be the solution. Retailers and tech partners can join forces to nail consistent brand experience across every channel. By pooling data and insights, retailers can really get to know their customers, whether they’re browsing in-store or online.

This teamwork help will help you ramp up your ad game and send out messages that actually hit home with shoppers. It’s all about smarter, more personalized connections!

Where Does AdButler Fit In?

AdButler connects you, the retailer, to your retail media potential by leveraging first-party data to optimize your sponsored listings and drive more revenue.

In our self-serve portal, you can see all your data—manage inventory and rate cards, streamline orders and payments, and handle ad approvals with scheduled reporting—within an automated system.

Retail media is leading the way, and we’re here to help you make the most of it.