Retail media networks enable retailers to monetize their digital shelves and first-party shopper data by selling advertising space and data-driven marketing solutions to brands. Through these networks, retailers can gain insights into purchase behaviors and target customers with personalized product recommendations and promotions. Retail media networks play an integral role in optimizing the digital shopping journey by surfacing relevant products based on past purchases, search history, and demographic traits.
The Global Retail Media Network Market is estimated to be valued at US$13 Billion in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024-2030.
Key Takeaways
Key players: Key players operating in the Retail Media Network are Walmart, Target, Kroger, Amazon, and Instacart.
Growing demand: Growing e-commerce trends and focus on personalized digital experiences from retailers and brands are fueling significant demand for Global Retail Media Network Market Trends Retailers recognize the lucrative potential of monetizing their first-party shopper data and digital ad inventory.
Global expansion: Major retailers are expanding their retail media network operations globally to tap new markets and audiences. Partnerships with global brands are also enabling retailers to scale their media network businesses internationally.
Market Key Trends
One of the major trends in the Retail Media Network Companies is the integration of shoppable ad formats. Retailers are allowing brands to run interactive and shoppable ads directly within the retailers' websites and mobile apps. Through these ads, customers can directly purchase featured products without leaving the ad interface. This enhances ad engagement and drives higher conversion rates for brands. As shoppable ad formats gain more traction, retailers can further monetize their media network business.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderately high in this market due to high capital requirements and competitive dynamics in the industry.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes and differentiated products in the market. However, switching costs are relatively low.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power as there are many established suppliers and barriers for new suppliers are also low.
Threat of new substitutes: Threat of substitutes is moderate as different digital advertising mediums can be used as alternatives.
Competitive rivalry: Fierce competition exists between existing providers.
North America accounted for the largest share of the retail media network market in 2019, followed by Europe and APAC. In North America, the US dominates due to the large retail industry, organized retail, and high digital ad spends.
The Asia Pacific region is expected to grow at the highest CAGR due to the growing young population, rise in disposable incomes, and increasing penetration of smartphones and internet services. China, India, and other southeast Asian countries are likely to offer lucrative opportunities for market players during the forecast period. The growing e-commerce industry, along with the digital transformation of retail stores, will drive the adoption of retail media networks in these markets.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)