Retail Media Networks (RMNs) are making an impact on the advertising sector, expanding 16.3% over the past year. Growth is driven by retailers who are diversifying their advertising channels and refining their measurement capabilities.
RMNs provide a unique opportunity for advertisers to reach high-intent consumers directly through retailer-owned media properties like websites, apps, and in-store screens, making them an attractive option for brands looking to connect with shoppers at crucial points in their purchasing journey.
Agencies are increasingly incorporating RMNs into their clients’ strategies, recognizing the potential of these networks to deliver more targeted and measurable advertising.
When making the best use of the distinct advantages of RMNs, agencies are better equipped to meet client demands for effective advertising solutions, further propelling the sector’s growth.
The standardization struggle in RMNs
Despite their rapid expansion, RMNs face challenges due to the lack of standardization across different networks. Inconsistency in measurement standards complicates the process for brands and agencies trying to evaluate campaign performance across multiple RMNs.
Each network often uses different metrics and reporting methods, leading to fragmented data that makes it difficult to draw meaningful comparisons.
A lack of standardization forces brands and agencies to spend more time and resources on data analysis to extract valuable insights, often requiring customized solutions to align disparate data sets. Added complexity reduces the efficiency and effectiveness of advertising campaigns, making standardization a priority for many stakeholders in the RMN space.
Why standardization could make or break RMN success
To address the challenges of inconsistent measurement, the Interactive Advertising Bureau (IAB) introduced media measurement guidelines in September 2023. Guidelines are designed to create a standardized framework for RMNs and adtech partners, simplifying campaign execution and performance evaluation across different networks.
When aligning metrics and reporting standards, the IAB’s initiative aims to reduce discrepancies and improve advertisers’ ability to compare performance uniformly.
Consistency is expected to lead to better decision-making and more effective allocation of advertising budgets. The adoption of these guidelines is projected to take 12 to 24 months, with active efforts underway to encourage widespread implementation.
How retailers are racing to embrace RMN standards
The introduction of the IAB’s measurement guidelines has prompted interest from retailers, who are investing in aligning their practices with the new standards. Retailers recognize that standardization can attract more advertisers When providing consistent and reliable performance data, improving trust and engagement in their networks.
As retailers commit to these standardization efforts, they position themselves to lead in the evolving RMN landscape. When demonstrating transparency and accountability, they can differentiate from competitors and foster stronger relationships with advertisers.
Inside CVS Media Exchange’s master plan to dominate RMNs
CVS Media Exchange (CMX) is using RMNs to improve both shopping and advertising experiences in its extensive network of 9,000 stores. CVS focuses on integrating online and offline channels, recognizing that over 50% of loyalty members who browse online visit a store within 48 hours.
The tech behind CVS’s in-store advertising revolution
In order to support its RMN strategy, CVS has installed 1,700 screens in its stores, with plans to expand further. Screens provide dynamic advertising opportunities that allow CVS to deliver targeted messages based on real-time data.
When focusing on customer needs and preferences, CVS improves the relevance and effectiveness of its in-store advertising.
CVS also employs data collaboration in a privacy-safe manner to provide advertisers with precise performance insights, especially for offsite channels. This capability is key for accurately measuring campaign effectiveness and making sure that advertisers receive actionable data.
CVS’s clean room initiative is nearly unheard of
CVS has partnered with Pinterest and LiveRamp to launch a clean room initiative that measures the effectiveness of offsite ads linked to CVS purchases through its loyalty program. This initiative gives accurate performance measurement by combining offsite ad data with in-store purchase information, providing advertisers with comprehensive insights into their campaigns.
The industry’s race to set RMN standards
Advertisers and agencies are advocating for common measurement standards to improve campaign execution and assessment. When pushing for standardized metrics, they aim to create a more reliable ecosystem that simplifies performance evaluation and improves accountability.
Agencies and brands leverage their spending power to influence RMNs, prioritizing investments in networks that comply with these emerging standards.
Tackling the wild west of RMN metrics
In order to address measurement inconsistencies, agencies like Albertsons Media Collective and dentsu emphasize adaptability and continuous learning. They invest in advanced data analytics to interpret discrepancies and develop strategies that maximize campaign effectiveness in the complex RMN landscape.
Agencies focus on delivering actionable insights by tracking impressions, analyzing channel investments, market share growth, and overall performance. When translating data into meaningful business insights, they help advertisers achieve a strong return on their investment.
What’s next for RMN measurement and accountability?
As the industry moves toward greater standardization, there is optimism for improved RMN measurement standards. The IAB’s guidelines are expected to play a key role in this transition, providing a framework for consistent practices across RMNs.
With ongoing investments from advertisers and agencies, the industry is poised for increased accountability and transparency, which will likely drive further growth and success in this dynamic sector.
