Retail media spend has been hailed the next big thing in digital advertising, and 99% of Asia-based marketers will increase their retail media spend over the next 12 months, according to a new study by Carousell Media Group, Interactive Advertising Bureau Southeast Asia and India (IAB SEA+India). Retail media refers to an advertisement placed on a retailer’s ecommerce website or app by the retailer or another brand within their network, and it helps to influence sales throughout the customer’s journey.
According to a report by McKinsey in 2022, as early as 2022 retailers have taken significant steps to embrace the commerce-media trend by embracing retail media networks. The report states that in the United States, the growth of retail media networks could represent as much as US$100 billion in ad spending by 2026. “With the overall operating margins of RMNs in the 50% to 70% range, companies across the retail spectrum are fully awake to the economic potential,” said the report.
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According to the report this increase in investment will come by the end of the year for 87% of respondents. Meanwhile, 9% plan to go through with the plan in 12-24 months.
"Because of this unprecedented growth our industry association is creating a specialist Retail Media Council this year to keep our members apprised of the marketing opportunities it provides along with more detailed insights and information on how to optimise, track and measure advertising performance," said regional CEO of IAB SEA+India, Miranda Dimopoulos. The study drew on the expertise of just under 2000 advertising decision makers across Southeast Asia and India with a majority of responders boasting over 17 years in the marketing industry.
Additionally, Dimopoulos added that the study revealed that 44% of respondents say they will advertise on a retail media network even if they do not have any products listed on that marketplace, a significant finding for marketers looking at where to put their ad dollars.
The survey also found that retail media sites in Asia are becoming the main gateway for digital advertising. Some of these sites include Carousell, Alibaba, JD.com, Grab, Foodpanda and Shopee with retail media ad spend outperforming many mainstream digital advertising platforms.
“Retail Media allows brands to showcase their products to consumers who have specifically searched for that item, or something similar, providing a seamless consumer experience and, of course, a solid return on ad spend,” said the managing director of Carousell Media Group, JJ Eastwood. “The fact that 78% of respondents want to use retail media data for off-platform targeting, specifically on exciting new formats such as CTV, indicates that Retail Media is moving up the funnel and can provide marketers with both direct response and branding opportunities,” he said.
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