By Kimeko McCoy • August 28, 2024 •
Ivy Liu
Behemoths like Amazon and Walmart dominate the retail media network landscape. However, that hasn’t stopped smaller players from coming into the space en masse and competing with one another, trying to stand out in a competitive landscape enough to scoop up any spare ad dollars.
Similar to a peacock mating dance, smaller, regional and specialized retail media networks like Macy’s, Lowe’s and Home Depot have spent the last few months rebranding and retooling their offerings, hoping to catch the attention and budgets of media buyers in a sea of competitors. With finite budgets, media agency execs say it becomes a matter of the haves vs. the have nots — which retailers have enough scale, data and measurement to beat out the competition.
“The ability to capitalize and build that business, they’re probably starting to realize that it’s going to take more than just opening the doors and letting that be, ‘Oh ok, so everyone’s just going to buy the thing that we put forward,’” said Steven Frey, planning director for Media by Mother.
Frey is referring to the snowball effect in light of Google’s once-threatened cookie deprecation that left marketers scrambling for the first-party data retailers were hocking. It’s part of the reason the retail media network space saw a growth spurt, leaving marketers grappling with the influx of options. Google has since shifted gears, retaining third-party cookies in its Chrome browser.
He added, “I think they’re realizing where there are weaknesses in the offerings and trying to adapt, trying to bring in feedback that they’ve received from advertisers on why they haven’t chosen those platforms.”
Still, that hasn’t seemed to toned down the fluffing of feathers in the frenzied RMN mating dance.
In early August, Lowe’s announced a rebrand for its 3-year-old retail media network, refreshing its name from Lowe’s One Roof Media Network to Lowe’s Media Network, on the heels of company’s newly launched loyalty program. The home improvement giant also announced expanded ad opportunities across its properties, including email, in-store audio, paid search and direct mail.
Around the same time, Macy’s Media Network broadened its four-year-old retail media and expanded its partnership with Rokt, a technology company that specializes in acquiring and retaining customers for businesses. The expanded partnership means new advertising use cases, including Macy’s credit card enrollment and loyalty program.
Home Depot made a similar move back in March, rebranding its retail media network and announcing new in-store ad offerings. This is all on top of a seemingly never-ending slew of retailers in commerce, travel and more launching their own media networks to tap into alternative revenue streams.
At this point, there are more than 200 retail media networks, according to Mimbi, a retail media intelligence platform. Companies seem determined to turn every digital surface into an ad opportunity pushing to trade/shopper dollars in addition to national media investments. Media buyers’ dollars, however, only stretch so far.
“If you go down the list, I would say, the ones with the largest first-party data sets are the ones that are going to be successful,” said Mike Feldman, svp and global head of retail media at Vayner Media.
It’s what makes Amazon’s $50 billion ad business so powerful, he added. Not only does Amazon have data by way of Amazon Prime memberships, but they own their own video content and supply chain inventory, making it easier to nail down who is shopping for what and when – and offering advertisers a heap of insights along the way. (Check out how Amazon is wooing publishers to bolster its $50 billion ad business here.)
What media buyers want is a retail media network that connects the pieces of a media buy outside of the four walls of that network, extending into other external mediums for a more holistic look at shoppers’ habits — a la Walmart and Vizio. (Although, that deal is still undergoing regulatory review since the original announcement back in February.)
“While the first-party data provides a highly targeted audience shopping and ready to buy, brands are still limited to that retailer’s ecosystem,” David Dykes, director of media at Baldwin& creative agency, said in an email. “So advertisers will need to generate reach with other digital advertising platforms.”
Media execs say they’re less interested in things like in-store audio and rebranding efforts, and at this point, self-service offerings, like programmatic media buying, are table stakes. Ultimately, media execs say retailers that are able to offer the most holistic look at shoppers across various media channels will be winners in the space.
“Therefore, there is a strong emphasis on the importance of a strategic sales and go-to-market approach that is inclusive of what makes the RMN data, audience, inventory, and offering differentiated, and a benefit for the advertisers in order to continue to capture and grow across the endemic and non-endemic space,” Chelsea Monaco, svp of commerce media at Digitas North America, said in an email.
That’s not to say specialty retail media networks aren’t worth their weight. Their regional or niche nature offer highly targeted, loyal audiences, agency execs say. But media dollars are already stretched across various media channels, including a seemingly endless supply of retail media networks from John Lewis department store, United Natural Foods company, Chase bank and more. To ensure media buyers get the most bang for their buck, it ultimately comes down to scale.
“You should have it figured out to tell us whether our spend is driving more purchase or not,” Media by Mother’s Frey said. “All the rest of the stuff is, for lack of a better term, a bit of bells and whistles. It’s always good to be expanding the product offering, but ensuring that the core features are clear is more of a priority on our end.”
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