In this articleWMTCMCSAAMZNFollow your favorite stocksCREATE FREE ACCOUNTAn M&M’s advertisement seen on a gas pump.Courtesy: GSTVThe next frontier for the ad market isn’t on TV — it’s at screens near points of sale.Television had long been the key target for advertisers, until tech companies such as Alphabet and Meta-owned platforms like Facebook began to gobble up market share. While ad dollars are rapidly shifting from traditional TV to streaming, retail and consumer product companies are now taking up a significant part of the mix.The so-called retail media networks — the advertising publishing platforms — of e-commerce, retail and consumer companies like Amazon, Walmart and Kroger are attracting billions of dollars in advertising, according to data from eMarketer and GroupM, the media investment arm of WPP, the world’s biggest advertising group.Global retail media ad spending is expected to more than double from $114.18 billion in 2023 to $233.89 billion in 2027, according to eMarketer. Retail media is expected to represent a larger percentage of digital advertising spending, which has begun to eclipse traditional media spending, growing from 18.9% of that segment in 2023 to 25.7% in 2027, according to eMarketer.”What we hear from brands most directly is they no longer wake up with a recipe to buy X amount of TV, X amount of social, X amount of digital. They wake up every day trying to buy growth, trying to buy outcomes for their business,” said Sean McCaffrey, president and CEO of GSTV, an on-the-go media network with over 29,000 screens at refueling points tied to convenience retail stores.GSTV screens reach 115 million viewers per month across 49 states.Brands are “more open-minded as to where they can find those audiences,” McCaffrey said.”It’s the new TV for mass reach advertising,” said Mark Boidman, head of media and entertainment investment banking at Solomon Partners. “If you want to reach someone fast, it’s best to get them in a store or on your app. … It’s a 360-degree approach.”Cookies to cartsWalmart is turning the approximately 170,000 digital screens across its U.S. stores into advertising opportunities. For example, a company that makes a snack or a beauty product can advertise in the TV aisle of the electronics department.WalmartThe kind of advertising purchased through retail media networks is often found on in-store displays and screens, websites, mobile apps, streaming services, smart TVs and social media. Not only is it fertile ground for an advertiser to get their offerings in front of consumers looking to spend, it comes with a lot of first-party data.The amount of data that retailers have on customers — from one-time buyers to loyalists — is extremely valuable to advertisers who want to optimize their exposure.”If [brands] advertise with a digital ad, for example, and a customer transacts a week later in a store or club, we can connect that up for them and let them know that the ad really worked,” Walmart CEO Doug McMillon told CNBC earlier this year. “That’s the differentiating advantage that we’ve got.”Walmart has been a particularly big player. While it’s still a new frontier for the retailer, advertising has propelled profits at the giant retailer in recent quarters. The company also recently agreed to buy TV maker Vizio in a bid to further boost its ad business.Of the companies eMarketer tracks, Amazon was considered the biggest retail media network in the U.S., with a roughly 75% share of retail media ad revenue. Other top networks by revenue include Walmart, Instacart, eBay and Etsy.The shift toward retail media comes as advertisers are faced with tech privacy changes that has led to a pullback in the collection of data.Earlier this year, Google began its revamp of how it and other companies track users online, namely the use of cookies, which keep tabs on the activity of internet users so that advertisers can target them with relevant ads.In January, Google began to restrict cookies for 1% of its Chrome browser users, with the goal of completely removing third-party cookies by the third quarter of this year. …
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[mwai_chat context=”Let’s have a discussion about this article:nnIn this articleWMTCMCSAAMZNFollow your favorite stocksCREATE FREE ACCOUNTAn M&M’s advertisement seen on a gas pump.Courtesy: GSTVThe next frontier for the ad market isn’t on TV — it’s at screens near points of sale.Television had long been the key target for advertisers, until tech companies such as Alphabet and Meta-owned platforms like Facebook began to gobble up market share. While ad dollars are rapidly shifting from traditional TV to streaming, retail and consumer product companies are now taking up a significant part of the mix.The so-called retail media networks — the advertising publishing platforms — of e-commerce, retail and consumer companies like Amazon, Walmart and Kroger are attracting billions of dollars in advertising, according to data from eMarketer and GroupM, the media investment arm of WPP, the world’s biggest advertising group.Global retail media ad spending is expected to more than double from $114.18 billion in 2023 to $233.89 billion in 2027, according to eMarketer. Retail media is expected to represent a larger percentage of digital advertising spending, which has begun to eclipse traditional media spending, growing from 18.9% of that segment in 2023 to 25.7% in 2027, according to eMarketer.”What we hear from brands most directly is they no longer wake up with a recipe to buy X amount of TV, X amount of social, X amount of digital. They wake up every day trying to buy growth, trying to buy outcomes for their business,” said Sean McCaffrey, president and CEO of GSTV, an on-the-go media network with over 29,000 screens at refueling points tied to convenience retail stores.GSTV screens reach 115 million viewers per month across 49 states.Brands are “more open-minded as to where they can find those audiences,” McCaffrey said.”It’s the new TV for mass reach advertising,” said Mark Boidman, head of media and entertainment investment banking at Solomon Partners. “If you want to reach someone fast, it’s best to get them in a store or on your app. … It’s a 360-degree approach.”Cookies to cartsWalmart is turning the approximately 170,000 digital screens across its U.S. stores into advertising opportunities. For example, a company that makes a snack or a beauty product can advertise in the TV aisle of the electronics department.WalmartThe kind of advertising purchased through retail media networks is often found on in-store displays and screens, websites, mobile apps, streaming services, smart TVs and social media. Not only is it fertile ground for an advertiser to get their offerings in front of consumers looking to spend, it comes with a lot of first-party data.The amount of data that retailers have on customers — from one-time buyers to loyalists — is extremely valuable to advertisers who want to optimize their exposure.”If [brands] advertise with a digital ad, for example, and a customer transacts a week later in a store or club, we can connect that up for them and let them know that the ad really worked,” Walmart CEO Doug McMillon told CNBC earlier this year. “That’s the differentiating advantage that we’ve got.”Walmart has been a particularly big player. While it’s still a new frontier for the retailer, advertising has propelled profits at the giant retailer in recent quarters. The company also recently agreed to buy TV maker Vizio in a bid to further boost its ad business.Of the companies eMarketer tracks, Amazon was considered the biggest retail media network in the U.S., with a roughly 75% share of retail media ad revenue. Other top networks by revenue include Walmart, Instacart, eBay and Etsy.The shift toward retail media comes as advertisers are faced with tech privacy changes that has led to a pullback in the collection of data.Earlier this year, Google began its revamp of how it and other companies track users online, namely the use of cookies, which keep tabs on the activity of internet users so that advertisers can target them with relevant ads.In January, Google began to restrict cookies for 1% of its Chrome browser users, with the goal of completely removing third-party cookies by the third quarter of this year. …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
