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Retail media v walled gardens
E-commerce & mobile retailDigital media planning & buying
Media agencies and marketers are warming to the insights, relevancy and safety of working with retailers as publishers, a new report maintains.
Why it matters
With the cost of campaigns in walled gardens increasing 27% over the past year and expected to continue to increase over the next 12 months – largely due to audiences being harder to understand within these platforms – a growing number of marketers plan to invest more in first-party, data-led retail media, according to Criteo’s report, Future of Commerce – The Rise of Retail Media on The Open Web.
But agencies surveyed* by the adtech company note several hurdles to achieving this: as well as a lack of retail media knowledge (57%) among e-commerce sites, apps and other digital platforms, there is also low technology adoption (53%). Retailers need to update their advertising models or miss out on a golden opportunity.
Seventy-eight percent of marketers plan to invest more in retail media as a direct result of how they feel about advertising options offered by walled gardens.
Media agency respondents already see this type of retail media investment returning greater impact in terms of relevance to the actual purchase (58%), sales growth (53%) and audience targeting (51%) when compared with walled garden environments.
More than two-thirds (68%) of marketers believe it to have the highest level of brand safety, surpassing apps (64%), social (65%), search (65%) and marketplaces (66%).
Amazon (40%) still tops the media agency list of ‘most desirable’ online retail environments to display ads on, but retail competitors now follow very closely including Boots (30%), AO (26%) The Very Group (22%) and ASDA (18%).
Walled gardens hold onto their place in the advertising ecosystem with marketers planning to invest an average of £303,000 this year.
“Advertising on retail sites is inherently a brand-safe environment with first-party data and strong performance – a combination guaranteed to secure recurrent spend from advertisers” – Sam Benkel, managing director, retail media Northern Europe at Criteo.
*Criteo surveyed 250 UK brand marketers and 250 decision makers in media agencies.
Sourced from Criteo [Image: Getty]
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