1、Retail Media 2023Operational Strategies to Meet the Growth PotentialPAGE 3FOREWORDPAGE 4EXECUTIVE SUMMARYPAGE 6MARKET OUTLOOKPAGE 12CURRENT SOLUTIONSPAGE 20AREAS OF OPPORTUNITYPAGE 27RECOMMENDATIONSPAGE 33APPENDIX METHODOLOGY SURVEY RESPONDENT PROFILE ABOUT IAB ABOUT THE IAB MEASUREMENT,ADDRESSABILI

2、TY&DATA CENTER ABOUT OUR SPONSORS ABOUT BWG STRATEGY2TABLE OF CONTENTSForewordForeword*Source:eMarketer,3/29/23 Retail media is generating significant optimism due to its advertising capabilities and new revenue streams.The channel is providing marketers with new and unique opportunities within the

3、broader media ecosystem which is being forced to reimagine how it operates due to substantial signal loss and ongoing privacy legislation.By enabling advanced personalization and closed loop measurement,Retail Media Networks(RMNs)have quickly emerged as an integral part of the omnichannel playbook.A

4、s a result,Retail Media was one of the fasted growing U.S.advertising channels in 2022(growing 22%year-over-year to$38 billion)and is projected to more than double across the next 5 years to$107 billion*as incremental and reallocated funds are funneled into its ecosystem.However,to meet these growth

5、 projections,there are challenges that need to be addressed.Ad buyers are frustrated with the siloed nature of RMNs and are asking for greater collaboration to minimize complexity and simplify activation.They have concerns regarding the RMNs ability to prove the value of their ad investment driven b

6、y a lack of standards and comprehensive measurement approaches.Both brands and retailers are also hampered by communication gaps and a lack of expertise regarding each others businesses,leading to misaligned goals.To help the industry solve these issues and meet the channels full potential,IAB partn

7、ered with BWG Strategy to survey 200 RMN ad buyers at brands and agencies and conduct over 30 interviews with senior decision-makers at retailers,brands,agencies,and intermediaries(i.e.,DSPs,SSPs,data providers)to understand whats working,whats not working,and what all parties need to operate at the

8、ir full potential in the RMN ad ecosystem.Retail Media 2023:Operational Strategies to Meet the Growth Potential reveals how we came to these conclusions,provides additional insights on Retail Media overall,and offers recommendations for the ecosystem on pages 27 to 32 of this report.3IAB thanksour s

9、ponsors:Retail media network(RMN)ad buyers*cited reaching incremental audiences(55%),leveraging retailer first-party data(52%),achieving strong performance(48%),and using customer data(45%)as the top reasons for investment.Endemic brands sold at retailers see value in the channel beyond their requir

10、ed spend commitments:Only 28%of RMN ad buyers cited their retailer ad spend requirements as a top reason for investment.RMN ad buyers are projected to increase spend by 11%in 2023(YoY).RMN ad spend is expected to account for more than one-fourth(28%)of buyers total overall media buys.To fund increas

11、ed RMN investment,brand buyers are reallocating funds from digital platforms,traditional media,and non-advertising,“below-the-line”shopper/trade marketing.2RETAIL MEDIA AD SPEND IS POSTING SOLID GROWTH,REPRESENTING SIGNIFICANT SHARE OF TOTAL AD SPEND,WHILE BENEFITTING FROM REALLOCATED FUNDSRETAIL ME

12、DIA HAS BECOME AN INTEGRAL CHANNEL BY ADDRESSING THE NEEDS FOR PRIVACY-COMPLIANT PERSONALIZATION AND CLOSED-LOOP MEASUREMENT*n=200 current RMN ad buyers at brand and agencies spending at least$5 million annually in retail mediaExecutive Summary14The number one cited growthchallengeby over two-thirds

13、 of ad buyers(69%)was“complexity in the buying process”,including RMNs operating in silos and a lack of automated buying and consistent cross-RMN performance capabilities.60%of ad buyers cited“collaboration and communication”with RMNs as a top challengeonly one in ten(12%)ad buyers are“very satisfie

14、d”with their RMN partner relationships and communication.Nearly two in three buyers(62%)cited the need for measurement standards as a top challenge to continued growth;58%cited enabling greater transparency.CHALLENGES TO RETAL MEDIA GROWTH ARE ECOSYSTEM COMPLEXITY,KNOWLEDGE GAPS,AND MEASUREMENTExecu

15、tive SummaryBrands and retailers agree that the optimal way to collaborate is to have alignment across all stakeholders within their own companies to bring a unified strategy to the brand/retailer partnership.Brands and retailers are instituting formal training on Retail Media and digital advertisin

16、g overall for those newer to the spaces.Cross-RMN measurement standards and transparency regarding attribution windows,incrementality,and viewability for consistent RMN comparisons will significantly help propel ad spend.SOLUTIONS ARE NOW BEING USED TO OVERCOME SOME ECOSYSTEM CHALLENGES,WHILE THE NE

17、EDS ARE CLEAR TO SOLVE FOR THE REST345Market OutlookMarket Outlook6Among all spendersSpending$5M-$30MSpending$30-$60MSpending$60M+Only those increasing spend11%10%15%12%19%RETAIL MEDIA NETWORK AD SPEND GROWTH PROJECTIONS:2023 EST.VS.2022As a result,our survey found that Retail Media investment is ex

18、pected to grow 11%*between 2022 and 2023.Among those increasing spend,investments are expected to rise by nearly 20%.Advertisers at all spend levels are increasing their investmentreinforcing the value of the channel for both large and small brands.Retail Media Is a Growth Engine for the Advertising

19、 IndustryThe advertising industry is at a key inflectionpoint where signal loss from new privacy-preserving tools has marketers looking for new ways to maintain and improve measurement and performance.Retail Media has emerged as a solutionwith its ability to identify audiences using first-party data

20、 generated from transactional data,loyalty programs,and CRM databases.Retail Media offers a privacy compliant way for ad buyers to understand audiences at new levels and how advertising drives purchases.Market OutlookTransactional DataSOURCES OF RETAILER FIRST-PARTY DATALoyalty ProgramsCRM SystemsSo

21、urce:IAB Introduction to Retail Media Course,2023*n=200 current RMN ad buyers at brand and agencies spending at least$5 million annually in Retail Media*Source:eMarketer,3/29/23 7Looking forward,Retail Media is projected to generate$45 billion in 2023 and$107 billion within 5 years.This places Retai

22、l Media among the largest media channels in ad spend in the U.S.*DigitalTVRetail Media*RadioDirect MailOOHPrint$263.89$61.31$45.38$10.71$9.72$9.15$8.952023 U.S.ESTIMATED SPENDING($B)“We see the value in taking users and bumping those against the RMNs to figure out how we can target them better,more

23、efficiently or more effectively to try this new product but also to remember this product.We see the benefit in leveraging RMN data.Its personalized data,its shopping.”-CPG Brand“Todays consumers are shopping in a variety of ways,whether its in-store,online,or even doing both by having digital media

24、 on their devices in-store.Retail media can help advertisers navigate the complexities of shopping behavior through first-party data and closed-loop measurement to tell advertisers exactly the types of sales being driven by their ads,wherever guests choose to shop.”-Matthew Drzewicki;Vice President,

25、Partner Solutions Group,Roundel*Source:eMarketer,3/29/23;3/29/23*Retail Media is included in digital but also broken out here for perspective8972%All Other Media Channels2023 ESTIMATED TOTAL AD SPEND%SHARE BY CHANNEL AMONG RMN AD BUYERS ONLY28%Retail Media NetworksWhen sourcing funds for increased R

26、etail Media investments,half(52%)of brand buyers are reallocating funds from across digital platforms,including social,search and digital video/CTV,while one-third(36%)are doing so from traditional media including linear TV,print,and out-of-home(OOH).Additionally,one-in-four(26%)brand buyers are rea

27、llocating funds from non-advertising,“below-the line”shopper/trade marketing budgets.Also of note is the substantial share that retail media will account for within ad buyers total media budgetsmore than one out of every four dollars(28%)spent across all media including TV,digital,print,OOH,and radi

28、o.Ability to reach new/incremental audiencesAbility to leverage retailers first-party dataPerformance is strong(e.g.,ROAS)Access to highly engaged audiences at point-of-saleAbility to leverage customer data/knowledgeRetailer partnership requires media buy55%52%48%45%45%28%TOP REASONS FOR INVESTING I

29、N RETAIL MEDIA ADVERTISINGRetail Media Network Advertising Fills a Marketplace NeedA key reason for the channels growth is its ability to meet marketers new challenge of leveraging data while remaining privacy-compliant.RMNs direct access to logged-in users at point-of-purchase provides brands not o

30、nly with first-party data insights but also opportunities to reach new audiences,build custom cohorts,and assess return on ad spend(ROAS)with greater accuracy.Thats why the top reasons buyers cited for investing in Retail Media was the“ability to reach new/incremental audiences”(55%)and“to leverage

31、retailers first-party data”(52%.)“Working with our retail media partners,we found success in reaching customers outside of our base to increase sales.”-Automotive Services Brand“Being able to leverage RMN first-party data is the most important factor when partnering.”-Agency Buyer10Challenging the E

32、ndemic Brand“Spend Tax”GrievanceAlthough“endemic brands”sold at the retailer are often required to invest in RMN advertising as part of their larger joint business partnerships with retailers,it is evident that ad buyers across categories recognize the value of investing in the space.In fact,only 28

33、%cite those requirements as a top reason for doing so versus the reasons cited on the previous page.11Current SolutionsCurrent Solutions12In addition to providing access to their data,some retailers are allowing third-party verification.This eliminates retailers“grading their own homework.”In that s

34、ame vein,third-party managed service platforms are creating reporting dashboards for clients which inherently ensure merit and greater accuracy.Some marketers are implementing in-house,proprietary models and dashboards that can collate reports,data,metrics,and measurements from multiple retailers.To

35、 mitigate emerging challenges as the RMN ad ecosystem grows,our interviews revealed that buyers and retailers have begun to develop solutions to meet the complexity of the buying process,the lack of measurement standards,and inefficiencies in communication.Data Collaboration,and Improved Measurement

36、 Standards and Transparency are Key to Long-Term Success Improving measurement and data collection is the number one opportunity area identified by buyers.Currently there are two primary ways retailers are making their performance data available to the buy-side:Theyve either built their own propriet

37、ary dashboards for clients or are allowing clients to tap into their APIs to ingest retailer data directly.Notably,retailers who have logged-in users,via loyalty or membership programs,are able to provide clients with even more data than other retailers.Those retailers can share both customer profil

38、e/shopping and media campaign data,thereby providing clients with a comprehensive view of performance.Current Solutions“Retail media networks should continue to enable first-party data visibility and utility.This is what will drive higher investment.”-CPG Brand13“As the industry grows quickly and pr

39、oviders proliferate,providers will need to put increased focus on ease of use of their tools,better data access and transparency,and provide better ability to perform MMM analysis/have a view into how their specific platform fits into a brands total strategy.“-Agency BuyerNew Automation Tools Are Ea

40、sing the Complexity in Media BuyingRMNs have begun to provide self-service and managed-service activation platforms.The self-service platforms provide smaller marketers with the ability to activate Retail Media with little barrier to entry while the managed-service platforms allow all marketers the

41、ability to reduce workflow inefficiencies through assistance from individuals at the RMN.SELF-SERVICE SOLUTIONS:SUPPLY-SIDE PLATFORMS(SSPS)Source:IAB Introduction to Retail Media Course,202314Proprietary models and dashboards enable buyers to produce a grading rubric to holistically assess performan

42、ce and make comparisons between retailersproviding them a more meaningful and productive mechanism to understand the landscape.Buyers and retailers have also found success collaborating within data clean rooms which enable data to be safely and securely commingled.Although this technology is relativ

43、ely nascent,it can enrich the data sets from both sides which offers additional value from a reporting,targeting,and audience insights perspectives.Additionally,many buyers leverage marketing mix models(MMMs)to get a holistic view of advertising performance across media channels,including RMNs.In ca

44、ses where retailers can send RMN ad signals to buyers to help power the MMMs,buyers can align their Retail Media strategies with other marketing efforts,leading to more coordinated and effective campaigns.This effort also leads to a better justification of the Retail Media value proposition for buye

45、rs.“Weve been working to build a criteria rubric to say what the capabilities are that each of the RMNs have so that we can then align them with brand strategies.So if a brand has a strategy to increase household penetration with a cohort of consumers,they can know what RMNs can help do that.And it

46、lets folks know our baseline standards of a media partner and a sales partner too for brand safety,viewability,tagging,and all those components.”-CPG Brand“It is hard to measure cross-channel,so seeing deeper integrations via clean rooms,third-party analytical support,and data spines will be tremend

47、ous as we look across all channels and make allocation decisions.”-Automotive Services Brand15We also found that one-fourth(23%)of RMN ad buyers are using Generative AI and more than half(53%)are investigating use cases.The biggest benefits they see are for activation-related tasksincluding ad targe

48、ting,segmentation,and bid management,followed by campaign and ad-generation,including copyediting,fact-checking,customization,and personalization.Ad targeting,segmentation,bid management,etc.Ad copyediting and fact-checkingCampaign/ad generationAd customization/personalizationProduct description gen

49、erationAd optimization43%38%33%32%31%30%TOP AREAS OF RMN AD PRACTICES THAT CAN BENEFIT FROM GENERATIVE AI(ONLY ANSWER CHOICES 30%AND ABOVE ARE SHOWN)A Clear Communication Structure Is the Way to Ensure Goal AlignmentThere is widespread belief that alignment within companies across all departments th

50、at play a role in Retail Media(including media,sales,and shopper marketing),combined with clear communication between buyers and retailers is the best way to build a holistic Retail Media strategy poised for success.This is particularly the case when both internal and external communications shift f

51、rom mere information sharing to collaborative goal setting and campaign execution.Our interviews found that there are many ways buyers can ensure intra-company collaboration and RMN goal alignment.The chart on the next page illustrates some of their operating models,led by primary contacts that can

52、funnel needs,metrics,and timeframes across departments.“Understanding what our optimal goals are and aligning with RMNs on how we can reach those has been key so that the relevancy to consumers shines through.Some have been easier to work with than others.Weve found that working with those who want

53、to understand our business are more successful.“-Online Retailer Brand16Source:IAB Introduction to Retail Media Course,2023DIFFERENT BUYER OPERATING MODELS Regardless of the approach,buyers have found that it is imperative that all company stakeholders are involved and aligned to goalsespecially sho

54、pper and merchandise teams who have been foundational in retailer relationships.This ensures that RMN efforts are not limited to an individual or few departments and that brand-wide,full-funnel results can be achieved.Also,once an intra-company operating model is selected,buyers have found success w

55、alking their retailer partners through the structure and department goals so retailers can ensure that budgets will be deployed in meaningful ways that attribute back to collective needs.“17“Educating RMNs on different teams and goals by department internally on the brand side creates an understandi

56、ng behind requests and needs.”-Healthcare BrandAnother often-cited solution to improve communication within companies is education.Because Retail Media is a relatively new component within the retailer/marketer relationship,it is necessary to train and educate all stakeholders on the value and oppor

57、tunities that can be accomplished with Retail Media.Therefore,to get their colleagues up to speed,brands and retailers are finding success through the institution of formal training on Retail Media and digital advertisingparticularly with non-media teams.Our interviewees found that education typical

58、ly translates into better communication among departments and helps in the creation of a unified,cross-department stance on fundamental metrics that can propel buyers and retailers.Better understanding enables trust.Finally,we heard from brands that retailers reacting to a brands needs with agility

59、is a crucial aspect that helps ensure value is being driven within RMN activations.The digital media ecosystem is a fast-paced business and marketers are continuously looking at ways to use real-time data to make real-time decisions.“More education regarding the different opportunities for RMN inves

60、tment is needed.As of now,its more learning as you go but a more formalized approach is needed.”-CPG BrandOne of the most effective ways to ensure the ability to move quickly is to have intra-team and cross team alignment from the outset,along with an understanding that campaign parameters may need

61、to be adjusted in-flight.“Weve found success with aligning on goals and KPIs before starting campaigns and then mutually reviewing and addressing adjustments to track returns.We are being upfront with our partners regarding our long-term goals and potentially making strategy adjustments accordingly.

62、”-CPG Brand18Areas of Areas of OpportunityOpportunity19Its Time for Retail Media to Take the Next Step in Its DevelopmentRetail Medias initial success has been accelerated by the ability of the RMNs to offer a solution to a larger advertising industry challenge:The ability to leverage data in a priv

63、acy-compliant way in an era of signal loss.But to sustain continued growth,RMNs must address further challenges.When buyers were asked to rank the top challenges in the RMN ecosystem,they identified four areas:1)resolving complexity in the buying process(69%),2)creating measurement standards(62%),3)

64、better collaboration/communication(60%),and 4)enabling greater transparency(58%).Areas of OpportunityResolving complexity in the buying processCreating measurement standardsBetter collaboration/communicationEnabling greater transparency69%62%60%58%TOP CHALLENGES IN THE RMN AD ECOSYSTEM20Creating Mea

65、surement Standards and Driving TransparencyConcerns from ad buyers in proving the value of the channel,particularly pertaining to data measurement and standardization,are real threats to RMN growth and momentum.From shopper insights to closed loop measurement,data plays a differentiating role in pro

66、pelling Retail Media.The fundamental need(cited by 50%of buyers)is to set reporting standards that enable marketers to aggregate information and gain a holistic view of their campaign performance across RMNs.For example,our interviews revealed that while ROAS,ROI,and incrementality are standard repo

67、rting metrics,many buy-and sell-side organizations cannot agree on how to define them.Buyers also want more in-depth insights across campaign and sales performance(48%),point-of-sale insights(44%),and increased line of site into media placement(42%).“Being able to more easily make buys across multip

68、le platforms is our biggest issue.”-Online Retailer BrandResolving Complexity in the Buying ProcessBuyers cited“complexity in the media buying process”as their number one challenge in the Retail Media ecosystem.The primary reason is that the RMNs operate in silos.This results in fundamental workflow

69、 processes being repeated multiple times for one campaign.Other media channels eliminate this redundancy through centralized and automated buying platforms offering more capabilities than those in this space.Additionally,the“silo-effect”makes cross RMN performance analytics very cumbersome and time

70、consuming.21Standardization of metrics/KPIs across multiple RMNsMore detailed/in-depth campaign performance/sales outcomes reportingStandardization of measurement approaches across multiple RMNsIncreased line of sight into consumer shopper/point-of-sale dataIncreased line of sight into media placeme

71、nt specificity50%48%45%44%42%TOP WAYS RMN PLANNING,ACTIVATION,AND ANALYSIS CAN BE IMPROVED(ONLY TOP 5 ANSWER CHOICES ARE SHOWN)21Also revealed was friction between the buy-and sell-sides relating to the following:What should the length of time be for attribution windows?Should measurement be by camp

72、aign or ad placement type?Should we measure onsite and offsite together or individually?Is incrementality“newness to brand,”“category expansion,”or“new customers to store”?“Weve actually walked away from some RMN relationships because theyre not able to provide us with the level of analytics or incr

73、ementality data we need,or theyre not able to provide MMM inputs for us which is our way to look at performance apples-to-apples.”-Paras Shah;Digital Media,Georgia-Pacific Consumer ProductsAdditionally,once there is agreement on the data to be shared,the format and delivery cadence of that data must

74、 be re-imagined.Today the process for the buy-side to bring together and analyze the performance across retailers is inefficient and prone to error.Without accurate data,performance results can be misleading.“Currently we are manually ingesting each RMN anonymized data source into our own dashboard.

75、So,how do we connect all of the media data sources so that what were pulling is in a standard format and from the same place?Its a very heavy lift,a lot of different data sources to string together to have a holistic view.”-Jen Bryce;Head of Retail Media Partnerships&Investment,Unilever22As Retail M

76、edia continues to evolve,it must adopt third-party verification of its delivery.RMNs“grading their own homework”breeds mistrust and creates more friction.As the channel matures,it needs to align with industry norms for third-party measurement.Better Collaboration(Within Marketers Teams and Between M

77、arketers and RMNs)Will Ensure TrustClear communication always plays a role in a partnerships successwhether that is for internal teams or with external teams.This is even more important when you are bringing new teams into existing relationships.For decades,shopper marketing teams within brands have

78、 owned the relationship with retailers.As Retail Media has emerged,this has placed pressure on existing brand-retailer relationships.“We really have to dig in with retailers on how they measure brand-defined KPIs and determine if were aligned.Since each retailer has their own methods of tracking,inc

79、luding accepting some sort of third-party tracking on or offsite,theres a gap to be closed in comparing retailer results as apples to apples.So thats still a concern.”-Alex Gibbs;SVP Commerce Media,Night Market23Fragmented or Unclear Ownership of Retail Media Within Companies Is a Major Barrier to P

80、rogress While only 22%of ad buyers cited intra-company communication as a challenge in the survey,in our interviews it became clear that this is much more of an impediment than diagnosed in the survey alone.Yes22%No78%Q:ARE DIFFERENT OR CONFLICTING DEPARTMENT-LEVEL RESPONSIBILITIES A TOP CHALLENGE W

81、ITHIN THE RMN ECOSYSTEM?“If Retail Media Networks are really selling omnichannel solutions,then they have to look at the customer touchpoints holistically by connecting trade and merchandising with in-store and online media spend,which is not always the case.”-Jill Cruz;Publicis Commerce,Executive V

82、ice President,Commerce StrategyWith the rise of Retail Media as a new tool in the partnership between marketers and retailers,marketers must spend more time aligning their teams goals before entering negotiations with retailers.Today responsibilities are often divided across media,shopper marketing,

83、sales,digital marketing,and e-commerce.This sub-division leads to confusion around roles,stalled decision-making,and a lack of a unified strategy.It also heightens friction with retailers when they are getting conflicting information.TRADITIONAL SILOED APPROACH NO SINGLE OWNER OF RMN STRATEGYRMNPart

84、nerMediaEcommShopperSalesSource:The Mars Agency-Making Sense of Retail Media,January 202224“Clients need to determine who is truly the internal decision maker whether that be a brand team,a shopper team,or commerce team.Having too many cooks in the kitchen and providing a platform to every stakehold

85、er does not necessarily streamline Retail Media investment or strategy.-Alexandra Goidel;Director,Commerce,Publicis“Brands and retailers across the spectrum have identified that departments outside of media are mostly unaware of their companys RMN ad buys and/or lack an understanding of how to consi

86、der media in their overall retailer strategy.Media buyers said that the lack of media understanding drives distrust between historically empowered shopper marketing teams and newly empowered media teams.This mistrust can lead to improper allocation of marketing funds and can threaten the long-term r

87、elationship between company and retailer.The primary areas that need internal alignment before negotiations begin are:Budgets allocated to Retail MediaTiming of a campaign and how it complements other shopper marketing effortsDesired target audienceKPIs for successHow measurement data will be shared

88、Finally,internal teams need to decide who will lead the negotiations for Retail Media.It should have a clearly identified leader who is empowered to make decisions.25Improving Communication Between Marketers and Retail Media NetworksWhile many RMN ad buyers express some level of satisfaction with th

89、e current state of communication and relationship management with their RMN partners,only 12%are“very satisfied”while an additional one-fourth were“on the fence,”neither satisfied nor dissatisfied.Thus,the RMN ad ecosystem is ripe for positive change regarding relationship management.The two biggest

90、 conflict points identified were agreeing to media mixthe combination of onsite and offsite mediaand metrics for success.This is a wrinkle in the media buying process that other media dont face.In more established marketplaces the buyer outlines metrics for success.But because Retail Media is affixi

91、ng itself to a long-standing relationship between marketer and retailer,there is an added layer of complexity.We heard many instances of disputes over different values assigned to different ad products and of measurement logistics.Value propositions among retail media networks still need proper defi

92、nition and clarity outside of the ability to tap into retailers first-party customer data.12%SATISFACTION WITH THE CURRENT STATE OF COMMUNICATION/RELATIONSHIP MANAGEMENT WITH RMN AD PARTNERS55%23%10%1%Very SatisfiedSomewhat SatisfiedNeither Satisfied Nor DissatisfiedSomewhat DissatisfiedVery Dissati

93、sfied2626RecommendationsRecommendations27As the retail media landscape is rapidly evolving,retailers,brands,and agencies must adapt to the growing complexity and demands of the market.By centralizing and streamlining activation,focusing on data and measurement standards and transparency,and improvin

94、g communication between and within companies,all parties can foster stronger,more effective partnerships.The following pages contain specific steps retailers,brands,and agencies should take to enable Retail Media to meet its full potential.28Retailers1.Centralize the media buying processes by invest

95、ing in automated,integrated activation platforms to minimize the silo effect and reduce redundancies in the buying process.2.When building the capabilities and offerings cited above,leverage IABs Retail Media Buyers Guide for insights into buyer needs and strategies across audience targeting,media b

96、uying,measurement,etc.3.Follow IAB guidelines and standards for ad formats such as display,native,and video to ensure platforms are aligned with industry norms and make it easier for brands and agencies to buy media.Brands1.To develop effective retail media strategies,leverage IABs Retail Media Buye

97、rs Guide for insights and best practices on media buying approaches,audience strategies,creative optimization,KPI selection,measurement,and more.2.Look for ways to make cross-platform buying less cumbersome and time-consuming through investments in technology or partnerships that enable smoother int

98、egrations.3.Push the industry to develop and adopt third-party activation platforms that allow all RMNS s to be analyzed,executed,and measured in a single platform.Agencies1.Include RMNs prominently within overall media plans rather than siloing it.2.Guide brands in a more unified Retail Media appro

99、ach focused on objectives vs.specific channels.3.Negotiate the relationship and business terms between brands and retailers,incorporating Retail Media fluidly within deals.4.Push for universal third-party activation platforms that allow all Retail Media networks to be analyzed,planned,activated,and

100、measured in a single platform.5.Leverage IABs Retail Media Buyers Guide for beneficial information on audience strategies,buying approaches,and measurement.6.Follow IAB standards and best practices for creative development,ad formats,data usage,and measurement when executing Retail Media campaigns t

101、o ensure quality and performance.Recommendations:Planning&Activation29Retailers1.Work with brands to create clear measurement standards and definitions to reduce friction points related to performance evaluation and transparency.2.Embrace third-party measurement and verification platforms and partne

102、rships to build trust with buyers,align with industry norms,and demonstrate commitment to accurate evaluation.3.Offer more in-depth insights and consistent reporting to assist brands in understanding campaign performance as timely and detailed analytics will support decision-making.4.Share robust fi

103、rst-party data with brands and agencies to enable better targeting and measurement including search keyword-level data,past purchase behaviors,product affinities,demographics,real-time intent signals,and in-store sales data.5.Share information across the advertiser journey including planning,buying,

104、optimization,and measurement.Disclose offerings like campaign planning,inventory tracking,and pricing models.6.Allow for more raw data feeds and APIs for real-time data ingestion enabling ad buyers with direct access to data to conduct their own measurement and attribution including A/B,multivariate

105、,lift,and synthetic tests.Brands1.Before beginning negotiations with retailers,align internally across departments(media,shopper marketing,sales,digital marketing,and e-commerce)on budgets,timing,target audience,success KPIs,and data sharing methods to ensure that Retail Media plans and measurement

106、will be approached from a full-funnel perspective.2.When collaborating with retailers on joint business plans,brands should align on IAB ad standards,data sharing needs,and measurement guidelines to ensure transparency and enable effective optimization throughout campaigns.Agencies1.Provide guidance

107、 to brands and retailers on privacy regulations,data ethics,and transparency to maintain consumer trust as adherence to privacy and ethical data use is crucial for Retail Media growth.2.When working with brands and retailers,promote data transparency by aligning on IAB standards for data sharing,ad

108、formats,measurement,and compliance.Recommendations:Data&Measurement30Recommendations:Organization&Communication(1 of 2)Retailers1.Strengthen relationships with brands via clear,ongoing communication around media mix,success metrics,and values in the creation of a streamlined and more transparent par

109、tnership.Keep brands up to date on any new capabilities and offerings.2.Educate all internal stakeholders on the Retail Media ecosystem including the innerworkings of digital media and how Retail Media contributes to legacy shopper and channel marketing initiatives.3.Join IABs Retail Media Network C

110、ommittee to collaborate with other industry players,stay updated on best practices,and have a voice in shaping standards.The committee provides an opportunity to build relationships and align on common goals.Brands1.Define clear leadership roles and responsibilities within media,shopper marketing,sa

111、les,digital marketing,and ecommerce teams to minimize confusion.Select a communication operating model appropriate for your organization,led by primary contacts that can funnel needs,metrics,and timeframes across departments and support a holistic go-to-market strategy.2.Strengthen relationships wit

112、h retailers via clear,ongoing communication around expectations,goals,and satisfaction levels to create a streamlined and more transparent partnership.Ask for frequent updates on new retailer capabilities and offerings.3.Educate all internal stakeholders,including those outside of media,on your orga

113、nizations current RMN ad buys and strategies as well as on the RMN ecosystem overall.This includes the innerworkings of digital media and how retail media contributes to legacy shopper and channel marketing initiatives.4.Join IABs Retail Media Network Committee to shape the future of retail media fr

114、om an advertiser perspective,collaborate with other industry players,and stay updated on best practices.The committee provides an opportunity to build relationships and align on common goals.31Recommendations:Organization&Communication(2 of 2)Agencies1.Leverage industry knowledge,best practices,and

115、workflow management to act as intermediaries between brands and retailers in campaign development,creative review,and performance optimization.2.Foster closer collaboration between your agency,brands,and the retailers through joint business planning,shared objectives,and goal alignment.3.Work to bre

116、ak down silos between brand marketing teams,trade marketing teams,and retailers to enable more holistic planning and budgeting.4.Partner closely with retailers on training,platform certification,campaign measurement,and insights to better use Retail Media capabilities.5.Educate brands on Retail Medi

117、a opportunities and guide them in developing audience,media buying,and creative strategies tailored to retail environments.6.Participate in IABs Retail Media Network Committee to ensure brand needs are understood by other players and help shape the future of Retail Media.32AppendixAppendix33Methodol

118、ogyIAB partnered with BWG Strategy to survey 200 retail media network(RMN)ad buyers at brands and agencies,as well as in the execution of over 30 interviews with key decision-makers at retailers,brands,agencies and intermediaries to understand whats working,whats not working and whats needed for all

119、 parties to operate at their full potential in the RMN ad ecosystem.Quantitative Sample Generated and Execution n=200 respondents at brands and agencies who have decision-making,active involvement and/or line of sight into Retail Media advertising spend in the U.S.for any brands they or their compan

120、y represents;respondents had a minimum spend of$5 million annually in Retail Media.15-minute anonymous online survey Fielded:June 13-30,2023Qualitative Sample Generation and Execution 45 to 60-minute interviews with 30+senior Retail Media decision-makers at retailers,brands,agencies,and intermediari

121、es(i.e.,DSPs,SSPs,data providers)Company mix included large companies(2022 annual revenue over$2 billion)and small-to-mid-size companies(2022 annual revenue less than$2 billion)Fielded:July 19 to August 7,2023Interviews were conducted by BWG Strategy alongside IAB subject matter experts:Justin Ruiss

122、,SVP Media Research,BWG Strategy Chris Bruderle,VP,Industry Insights&Content Strategy,IAB Jeffrey Bustos,VP,Measurement,Addressability&Data Center,IABQuantitative research was gathered by BWG Strategy alongside IAB subject matter experts:Terence Knight,Research Analyst,BWG Strategy Chris Bruderle,VP

123、,Industry Insights&Content Strategy,IAB Meredith Guiness,Senior Manager,Research&Insights,IAB34$5M-$30M,58%$30-$60M,19%$60M+,24%55%9%8%6%5%5%3%3%1%1%1%5%CPGHealth and WellnessRetailTechnology/Consumer ElectronicsApparel/FashionAutomotive and RelatedFinancial ServicesMedia and EntertainmentTelecommun

124、icationsHome and ApplianceTravelOtherAgencies 38%Brands 63%COMPANY TYPESurvey Respondent ProfileC-Level(CEO,COO,CMO,etc.)Vice President,SVP,EVP,President,etc.DirectorSupervisor,Department Head,Group ManagerManager12%27%37%9%17%JOB TITLEANNUAL RETAIL MEDIA SPEND SIZEPRIMARY RMN AD CATEGORY35About IAB

125、The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy.Its membership comprises more than 700 leading media companies,brands,agencies,and the technology firms responsible for selling,delivering,and optimizing digital ad marketing campaigns.The

126、 trade group fields critical research on interactive advertising,while also educating brands,agencies,and the wider business community on the importance of digital marketing.In affiliation with the IAB Tech Lab,IAB develops technical standards and solutions.IAB is committed to professional developme

127、nt and elevating the knowledge,skills,expertise,and diversity of the workforce across the industry.Through the work of its public policy office in Washington,D.C.,the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policym

128、akers.Founded in 1996,IAB is headquartered in New York City.36About IAB Measurement,Addressability&Data CenterThe collection and use of data to reach audiences and measure online advertising campaigns is central to powering the digital advertising ecosystem.IABs Measurement,Addressability&Data Cente

129、r aims to provide essential industry guidance and education on solutions amid changes in underlying technology and privacy regulations in a constantly evolving ecosystem.The Center focuses on:Developing measurement and addressability standards,best practices,and guidelines for digital mediaIdentifyi

130、ng requirements for improving data assets for brand suitability,brand safety,transparency,and trustProviding updated standard IAB Terms&Conditions to allow companies to transact more efficientlyDelivering guidance on new addressability and measurement solutions of known and unknown audiences and/or

131、changes in the marketplaceAccelerating the development of effective emerging markets,such as retail media networks,data clean rooms,etc.37About Our Sponsors38Clue is an award-winning data and media partner for brands.We help you harness the power of your data and unlock your business boundless poten

132、tial online.Our goal is to transform how you buy and measure media by making you the key data partner for your campaigns.When you can better leverage your data for research,targeting,optimization,and measurement,you can claim back investment that went to fees and put it into working media.That means

133、 more reach,more traffic,more conversions,and ultimately,better results.We specialize in planning,managing,and measuring omni-channel campaigns across search,social,programmatic,and emerging channels like Connected TV.Clue is a digital-native company with empowered,remote staff located around the wo

134、rld.For more information,visit MeetC.Austin-based KERV Interactive is a digital advertising platform built on patented technology to create shoppable and immersive experiences within video.Using machine learning techniques and AI to drive speed and precision,only KERVs technology recognizes depth,di

135、mension,and objects in a video in real-time more accurately than the human eye.The platforms ability to make shoppable video has shown to be successful across the web,mobile,social and CTV.Only KERV delivers a truly unique shopping experience for consumers and brands.For more information,please visi

136、t www.kerv.ai.About BWG Strategy39Established in 2013,BWG Strategy is a primary research firm with an unwavering commitment to data quality.Our journey began with hosting live in-person events featuring industry thought leaders in New York City.These events have established BWG as a trusted thought

137、partner to the buyside community.As BWGs reputation for investment-grade insights grew,so did the strong client following.Today,BWGs research is leveraged by 300+investment firms managing over$6T in assets.BWG supports multi-strategy funds,private equity and venture capital investors,as well as corp

138、orate decision makers in finding answers to their most challenging questions.BWG Custom Research,the firms fastest growing segment,delivers meticulously tailored custom research projects to help clients in their research and decision making.BWG Custom Research team is proud to serve a diverse client

139、 portfolio that spans the top private equity and management consulting firms,and Fortune 500 corporations.BWG Custom Research offers solutions for a wide array of use cases,including product marketing,mergers and acquisitions,customer and competitor studies and thought leadership.This dynamic evolut

140、ion underscores BWG Strategys commitment to providing innovative,tailored research solutions that empower its clients to excel in an ever-changing business landscape.+Chris BruderleVP,Industry Insights&Content StrategyCJeffrey BustosVP,Measurement,Addressability,&Data CenterJMeredith GuinessSenior Manager,Research&InsightsMBrad Lyons Head of ResearchBJustin Ruiss SVP,Media ResearchJTerence KnightResearch AnalystTJack FitzpatrickHead of Business DevelopmentJ40