Be taught Briefing: RMNs vie for ad dollars, but entrepreneurs are uncertain where to relate

By Catherine Wolf  •  April 4, 2024  •  5 min read  •

Ivy Liu

This analysis relies on queer files serene from our proprietary audience of publisher, agency, achieve and tech insiders. It’s on the market to Digiday+ members. More from the series →

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On this week’s Digiday+ Be taught Briefing, we view how the rapid development of retail media networks is making it laborious for entrepreneurs to evaluate where to relate, how agency spending on TikTok has dropped sharply in most recent months, and how Amazon is hoping more entrepreneurs will hop on board with its DSP, as seen in most recent files from Digiday+ Be taught.

76% of entrepreneurs use Amazon’s RMN, whereas 24% use Walmart Connect

With the most recent upward push of retail media networks (RMNs), deciding which RMNs are price spending on might maybe well be a scenario for entrepreneurs. Georgia-Pacific, as an example, has vetted roughly 40 RMNs, flee tests with over 25 of them and in the kill consolidated 90% of its retail media network spending with seven networks along with Amazon Promoting, Walmart Connect and Kroger Precision Marketing.

Marketers are also having a survey to RMNs for his or her first-social gathering files wants, as the cookieless future nears — 61% of agency consultants talked about they agree Google will set away with third-social gathering cookies in Chrome in Q1 2025, based on a most recent Digiday+ Be taught stare. “One thing I learned is that the quality of the guidelines was no longer the same right via each network,” talked about Paras Shah, director of digital marketing and marketing at Georgia-Pacific. “While they told you they’d first-social gathering files, they weren’t always giving first-social gathering files for me to spark off in opposition to them. A pair of of them were layering in further sources of files like third-social gathering files in divulge to win the cost down.”

In the period in-between, Amazon is the terrifying considerable character in retail media story, with 76% of marketer respondents announcing they use the platform for promoting their corporations’ products, in accordance Digiday+ Be taught’s CMO Concepts series. Walmart Connect was entrepreneurs’ 2nd most-used RMN, with 24% of respondents announcing they use that platform.

So as to compete with the discontinue retail media players (which also embody Walmart Connect and Target’s Roundel) and to develop awareness amongst advertisers, some RMNs be pleased begun webhosting upfront-trend pitches to entrepreneurs. Final week, The Dwelling Depot hosted its inaugural “InFront” to tout its retail media offering, the rebranded Orange Apron Media network. “It’s considerable for our supplier, marketing and marketing groups and companies to fulfill our marketing and marketing leaders,” Melanie Babcock, vp of Orange Apron Media, told Digiday. “If you’re a retail media network and also you don’t recount that that piece is serious to your supplier, you’re missing the boat.”

Insights and stats:

  • Retail media is never any longer without its challenges. With the exception of increasing privacy rules, a wide scenario for entrepreneurs is the cost of media. Ninety-two percent of stare respondents talked about the cost of media was the last observe scenario they face with retail media.

  • Nearly all of entrepreneurs measure retail media success via commerce or sales rather than awareness metrics like impressions or engagement: 95% of marketer respondents talked about their considerable size of success is commerce or sales, versus 12% and 5% for impressions and engagement, respectively.
  • Kroger’s Kroger Precision Marketing was chosen by most effective 6% of stare respondents as a RMN their firm currently makes use of. The grocer might maybe maybe also develop its RMN via its impending merger with supermarket wide Albertsons Companies, although that deal is tied up in litigation as The U.S. Federal Trade Commission is suing to block it.

Be taught more about the growth of retail media networks

Digiday+ Be taught digest

Agency spending on TikTok has fallen sharply in the outdated couple of months, based on a considerable-quarter stare conducted amongst agency consultants by Digiday+ Be taught. That’s as the short-impression video app faces a doable ban in the U.S. (amongst other complications). Agency entrepreneurs be pleased traditionally been more skeptical toward TikTok than their achieve marketer counterparts, and Digiday’s stare found that the true proof of companies’ hesitation to embody TikTok as a stable marketing and marketing channel for his or her purchasers lies in their spending there (or lack thereof).

The stats:

  • Agency spending had been holding actual for the reason that 2nd half of of 2022, with about three-quarters of agency pros announcing their purchasers spent a minimal of a extraordinarily runt piece of their marketing and marketing funds on TikTok. Nonetheless as of Q1 2024, most effective 59% percent of agency pros now snarl their purchasers set a minimal of a extraordinarily runt piece of their marketing and marketing funds toward TikTok — a wide fall.

  • A runt bit more than half of of companies (55%) are active on TikTok, placing it in fourth quandary amongst social channels for companies, stupid Instagram, Facebook and YouTube. For context, 73% of achieve pros told Digiday their corporations currently use TikTok.

  • Thirty-nine percent of agency pros talked about engagement is the considerable size of success their purchasers currently use on TikTok, whereas 26% of agency pros talked about commerce or sales is their purchasers’ high success metric. A focal level on commerce and sales might maybe maybe display conceal that some agency purchasers are making TikTok Shop a more severe fragment of their marketing and marketing solutions.

Be taught more about agency spending on TikTok

Amazon has the aptitude for more advertisers to win on board with its quiz-aspect platform, but currently many entrepreneurs don’t see Amazon’s DSP as a grand replacement to the ones owned by Google and The Trade Desk. That’s based on what entrepreneurs, publishers and ad tech distributors shared with Digiday+ Be taught in a March stare. Stunning 5% of the 44 respondents in Digiday’s stare chose Amazon as their most new DSP in the event that they might maybe even most effective take out one. In distinction, with regards to four in 10 (39%) opted for Google’s DV360, with the same percentage choosing The Trade Desk.

Insights and stats:

  • If Amazon might maybe maybe reshape the legend round its DSP, there’s each cause to deem it will obtain over more ad pros. Forty-three percent of stare respondents talked about they significantly agree that a brand new, improved Amazon DSP is adequate to win them to re-evaluate spending more programmatic ad dollars with the platform, whereas 5% talked about they strongly agree.
  • “There’s obvious need for a quantity three in the market. So, there’s going to be a pure reaction for folks to inform, ‘Alright, we are able to most effective attain so considerable with [Google] DV 360, and this considerable with TTD.’ So, who else is there?” — Matt Prohaska, CEO of Prohaska Consulting

  • A third of stare respondents (33%) talked about they’ve used Amazon’s DSP in the previous 12 months, whereas 56% talked about they’ve used The Trade Desk and 64% talked about they’ve used Google DV360.

Be taught more about ad executives’ use of Amazon’s DSP

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