Retail media network enables brands to reach shoppers by placing digital advertisements on retailers’ websites and mobile apps. Through retail media networks, brands can target shoppers based on their demographic profiles and past shopping behaviors. This helps brands in driving more relevant and personalized advertisements. Major retailers operating retail media networks include Walmart, Target, Kroger, Albertsons, and Amazon. They allow consumer goods companies and other advertisers to display ads on their platforms. Products commonly advertised include food & beverages, home & personal care items, apparels and electronics. The global Retail Media Network Market is estimated to be valued at US$ 1,227.84 Mn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the major drivers for the growth of the retail media network market is the increased advertising spend of brands. As retail media networks provide powerful shopper insights and precisely targeted advertising capabilities, brands are increasingly allocating more portions of their advertising budgets on retail media. It helps brands to reach the right customers at the right time with relevant messages. Moreover, high return on ad spend through retail media is encouraging brands to further boost their ad spending on retail networks. Ability of retail media networks to measure ad performances in terms of sales lift is also driving their preference over other digital advertising platforms.
Segment Analysis
The retail media network market is segmented into sub-segments such as in-store (billboard or product placement), check-out screens, mobile applications, and others. Among these, the in-store segment holds the largest market share as this provides the highest visibility and targeted reach to customers in retail stores. Brands get to promote their products and campaigns directly to customers while they are shopping through digital displays at prominent locations in retail outlets.
PEST Analysis
Political: The retail media network market is positively impacted by supportive government policies and regulations around digitalization and improving customer experience through modern technologies in retail stores.
Economic: Rising digital ad spending from brands and retailers is fueling market growth. As consumer spending increases, companies are allocating higher budgets for digital and in-store marketing.
Social: Changing consumer behavior of researching products online and comparing prices digitally before shopping drives the need for retailers to have strong digital media presence. The social influence of brand promotions seen by customers instore also impacts purchase decisions.
Technological: Advanced technologies like AI, machine learning, analytics are helping retailers and brands to gain deep customer insights and personalize ad content. Growth in connected devices also allows mobile campaigns to reach customers effectively.
Key Takeaways
The Global Retail Media Network Market Size is expected to witness high growth over the forecast period supported by increasing digital transformation of retailers.
Regional Analysis: The North American region currently dominates the market due to widespread adoption of digital technologies among major retailers in the region. Key retailers like Walmart, Target, Kroger are investing heavily in revamping the in-store shopping experience through digital signage and mobile apps.
Key players operating in the retail media network market are GATX Corporation, Progress Rail (A Caterpillar Company), TrinityRail, Mitsui Rail Capital LLC, Angel Trains, Beacon Rail Leasing, Railpool, Eversholt Rail Group, Macquarie Group, SMBC Rail Services, VTG Rail Leasing, Mitsui & Co., Ltd., Touax Rail Ltd., CIT Group Inc., The Andersons Rail Group. GATX Corporation specializes in railcar leasing solutions while Progress Rail supplies parts for freight railcars.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
