What: Retail Media is expected to be the next big thing for retailers in 2022 and 2023.

Why it is important: It is seen as a way of maximizing existing assets (stores) into integrating them in a marketing and media mix made available to third parties. Smart, but not that easy to set up, all the more that scale is the secret to profitability in this case.

According to Coresight, the global retail media industry is expected to see substantial growth in 2022, with a total estimated revenue of $75.1 billion, an 80.1% increase from the previous year. As a consequence, many retailers are focusing on building up their retail media networks (RMNs) to capture a larger share of advertisers' media budgets.

A recent survey found that nearly 90% of US-based retailers and speciality retailers already have retail media capabilities.

When it comes to on-site retail media, it is more suitable for multi-brand retailers with a higher level of site traffic, while off-site retail media is more advantageous for single-brand retailers, as it helps them reach a wider audience and drive traffic to their own websites.

Single-brand retailers face limitations in terms of the advertisers they can work with, however, non-endemic advertising presents a significant opportunity for them. On the other hand, multi-brand retailers have greater monetization potential, but they must ensure that the advertisements align with their brand image and avoid any possibility of cannibalization.

To make the most of the retail media opportunity, retailers should aim to make advertisements location-specific, personalized, and relevant to the customer. Additionally, the advertisements should align with the retailer's brand image, ensuring that they make natural sense to the customer. Overall, the growth of the retail media industry presents exciting possibilities for retailers, and they must consider their unique strengths and limitations when navigating this new landscape.

 A look at the Retail Media opportunities in the US