How RMNs can stand out

Video is the most effective Amazon ad solution, according to retail decision-makers SEPTEMBER 9, 2024 [Retail media networks need to differentiate themselves and work with third parties to win advertisers’ limited budgets]( Two in three advertisers don’t plan to invest in new [retail media networks (RMNs)]( in the next couple of years, according to Association of National Advertisers (ANA) data. “The majority of dollars used to fund investments in [retail media]( are being borrowed from existing budgets within advertisers’ organizations,” said our analyst Sarah Marzano. This presents a particular challenge for new and small RMNs. “New entrants need to differentiate themselves,” said Marzano. For example, a regional grocer like H-E-B needs to leverage that ad dollars can potentially go further with H-E-B’s local Texan audience than with Walmart’s less niche customers. Advertisers are also looking for RMNs that provide brand [marketing]( opportunities, either through off-site activations on [social media]( or [connected TV (CTV)]( or on-site activations via unique display or video ad offerings. Story continues below. To differentiate themselves, RMNs should focus on improving the top features advertisers are looking for. Those reasons, according to a June 2023 Interactive Advertising Bureau (IAB) survey, are: - Ability to reach new/incremental audiences (55%) - Ability to leverage [retailers’]( first-party data (52%) - Demonstrably strong performance (48%) An RMN with all these desirable attributes still needs to make it easy to buy inventory. This starts with streamlining the ad-buying process, which is where third-party partnerships with ad buying, [measurement]( and management platforms are valuable. [Agencies]( and [ad tech]( platforms can help with some of advertisers’ biggest pain points, which include lack of standardization across platforms (55%) and attribution to sales (48%), per a January 2024 ANA survey. “Middlemen have a unique position to cut through the noise and streamline processes both for brands and for RMNs,” Marzano said. “They can create platforms that help standardize performance and create apples-to-apples comparisons,” said Marzano. [Read online]( [Video is the most effective Amazon ad solution, according to retail decision-makers]( [Video is the most effective Amazon ad solution, according to retail decision-makers ]( Key stat: 48% of US retail business decision-makers say video ads drive the biggest return on ad spend (ROAS) on [Amazon]( according to March 2024 data by Zogby Analytics and Feedvisor. Another 39% believe sponsored products are Amazon’s ROAS-driving ad solution. Beyond the chart: - This year, video will make up 35.7% of total US digital ad spend, amounting to $108.15 billion, according to our March 2024 forecast. - Amazon’s $41.95 billion in US retail media ad revenue this year will account for more than three-quarters (77.0%) of the total retail media ad market, according to our March 2024 forecast. [Read online]( Email sent to: {EMAIL} If you cannot view the HTML newsletter, [please read it in your browser here](. [Become a Premium Subscriber]( | [Advertise with us]( [Manage your email preferences]( | [Unsubscribe]( | [Terms of Use]( | [Privacy Policy]( ©2024 EMARKETER, One Liberty Plaza 9th Floor, New York, NY 10006 [LiveIntent Logo]( [AdChoices Logo](