New research by commerce media company Criteo has quantified the scale of demand retailers are experiencing for advertising slots on their websites, with 96% forced to implement a waiting list.
The UK study of 251 retail-based chief marketing officers illustrates an explosion of interest in retail media, with revenues from such adverts rising 24% over the past year alone. This comes as 70% of respondents identified such monetization strategies as a ‘strategic priority.’
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Brian Gleason, chief revenue officer at Criteo, said: “A retail media approach enables companies to create personalized advertising experiences and generate new and high-margin revenue streams, which, in turn, can fund multiple growth initiatives for the retailer and convert the marketing function from being a cost center into a revenue center.
“Given the explosive growth of media networks, many consumer-facing industries are ripe to benefit from this movement. Of course, not every retailer can expect the same demand from the word ‘go,’ but even with less mature programs, retailers can take a data-driven approach to measuring relevancy to determine the right number of ads to show. Moreover, opening inventory to non-endemic brands can immediately open new sources of demand while making the digital shelf more diverse.”
Surging interest in the sector has prompted 69% of respondents who have yet to enter the market to consider trialing media retail offers of their own. Of those who have taken the plunge, 44% offer onsite sponsored and promoted products, while 35% make display ads available. A further 32% provide brands with the opportunity to avail themselves of video ads.
Shifting revenue streams are powering boardroom shake-ups, with new shared roles and responsibilities presenting themselves. 55% of respondents agreed that chief marketing officers hold some responsibility for retail media, while 49% of chief marketers believed responsibility lies with the chief executive. On the other hand, a mere 8% of chief execs felt that retail media strategies were best placed in the hands of chief data officers, irrespective of their role in overseeing first-party data management.
When asked how retail media should be structured, 18% were of the view it should take the form of a dedicated unit, while the vast majority (81%) supposed it would form a subset of existing marketing.
The study follows a Criteo partnership with Deliveroo to carry ads on the delivery platform.