04 January 2022
Albertsons, the third largest grocer in the United States, and Tesco, the largest retailer in the United Kingdom, recently launched their own retail media networks to join the race against Amazon.com and others. retail rivals.
Albertson media program reaches 27 million Just for U loyalty members. Media opportunities include homepage, department, category, subcategory, email, search, app, and advertising placements. Albertsons pharmacy, as well as targeted offsite advertising placements.
Tesco media network, powered by dunnhumby, gives advertisers access to the UK-based supermarket chain’s 20 million customer loyalty database Clubcard for ad targeting and insight on everything. from individual personalization to larger mass campaigns.
The acceleration of e-commerce caused by the pandemic subsequently led to increased ad placements on retailer e-commerce sites and applications to influence consumers at the increasingly omnichannel point of purchase.
EMarketer identified retail media as one of the top five retail trends of 2022, predicting that they will account for 17.2% of digital sales in the United States, up from 14.9% in 2021 and 13 , 4% in 2020.
“The handy fruit of retail media has been the bottom-of-the-funnel search ads. But various retail media networks are evolving their advertising offerings to include more upper funnel awareness formats, such as digital signage and video, ” eMarketer written in a report. “Several also have their own demand side platforms (DSPs) or partner with other DSPs to serve targeted advertising beyond their owned and operated sites, including in ad-supported CTV.”
Forrester “Predictions 2022The report predicts that retail media spending will overtake Netflix and YouTube this year. Forrester wrote, “As zero and first party data becomes critical for marketers in 2022, retail media networks rich in data will live up to the occasion. ”
Best Buy and Dollar Tree also caused a sensation in 2021 with the launch of media networks, joining Walmart, Target, Kroger, CVS, Walgreens, Macy’s, Home Depot, Best Buy and others.
Amazon, however, remains far ahead. According to eMarketer, Amazon’s share of U.S. digital media revenue was 77.7% in 2021, up from 76.6% in 2020, and is only expected to drop to 76.9% in 2022, despite competition. Rounding out the top three for 2021, Walmart, with a 5.4% share, and Instacart, 1.7%.
DISCUSSION QUESTIONS: Can new entrants such as Albertsons and Tesco experience significant success in the retail media space compared to other retailers who have a head start? What is your overall outlook for retail media spending in the coming years?
“Tesco and Albertsons are not coming too late, if only because the partner brands of both companies will want to leverage the data and scale offered by the two retailers. “