Criteo, the commerce media company, has conducted a global study of more than 1,000 brands, agencies, retailers and publishers in a report titled “The Great Defrag: how commerce media will unite advertising in 2024”, bringing together perspectives from all players and all regions into one cohesive story of how to advance retail media to the next level.
‘The Great Defrag’ report is based on research commissioned by Criteo and conducted in six countries globally including the UK, France, Germany, US, Japan and South Korea.
The above insights come from the global survey results for which Criteo surveyed 1,004 senior professionals working at brands, agencies, retailers and publishers in December 2023.
The study revealed that 83 percent of publishers globally are open to tap into retail media ad spend by embedding products on their web pages, opening up more inventory opportunities for offsite campaigns. The data also illustrates how retail media has evolved beyond purely sponsored product ads. Overall, 85 percent of brands and agencies agreed the ability of retail media to drive upper-funnel brand awareness is growing stronger.
Forming new partnerships is a priority in 2024 compared to 2023, according to 31 percent of retailers and 34 percent of brands. Half of publishers globally also prioritize building long-term partnerships with brands, agencies, and retailers to find a new streams of revenue by tapping into the benefits and opportunities of commerce media.
Brian Gleason, chief revenue officer, Criteo comments, “Advertisers, publishers and retailers want to make full use of this new media and our mission is to make it as simple as possible. The easier it is for all parties to successfully buy and sell retail media, the faster we reach the potential of this $100 billion market opportunity.”
The study shows that 69 percent of publishers prioritise retail media revenue over the next 12-18 months, benefiting 56 percent of brands and 47 percent of agencies investing in retail media both onsite and offsite. Another quarter (24 percent brands, 25 percent agencies) are investing only in onsite, but plan to expand to offsite in the future.
To meet offsite demands, 51 percent of retailers are prioritizing investment in this area, while 43 percent are also working to meet demands for retail media in-store, such as digital screens and point of sale displays in physical stores.
“Ultimately retail media has to emulate the whole journey of the consumer”, explains Gleason. “Offsite and instore are essential components in influencing and guiding decisions, alongside sponsored products and onsite display ads. As retail media moves up the funnel, new demand sources like brand marketing and performance marketing need to be added to the mix.”
The report reveals that budget management and measuring ROI are the top challenges commonly shared across audiences and regions, which are directly connected to the larger issue of fragmentation. The key to growth for brands, agencies, and retailers is finding solutions that can unite, streamline, and simplify the management and measurement of retail media.
As we enter the age of addressability, the resource everyone needs is first-party data. Any company with a unique audience and a monetization strategy has the potential to add a new revenue stream. More than half of brands and agencies are keen on seeing other commerce- led verticals beyond retail, such as airlines, hotels, and financial services, further monetize their digital footprints.
This broader activation of first-party data in new verticals differentiates the category of ‘commerce media’ from retail media. With brands and agencies planning to spend more on the category, there is still room for growth. Forty-five percent of brands and agencies plan to invest in non-retail verticals that offer similar first-party data and closed-loop features to retail media to meet 2024 objectives.
Read More: Advertisers are allocating more budgets to open web for measurable results: Criteo