Mediabrands’ new unit will be able to tell brands how their advertising is performing at each retailer, and automatically move spend between networks for the best sales outcome. Brands will be able to use IPG’s AI tools for their planning. Already, advertisers in categories such as CPG, gaming and over-the-counter have beta-tested the unit, Mediabrands said.
As retail media has exploded in growth, so have pain points for brands. The lack of standardization across networks and measurement issue have industry stakeholders scrambling to develop more universal solutions. The Association of National Advertisers recently characterized brands investing in retail media as “reluctant buyers.”
Despite rosy predictions—Magna recently forecasted that retail media networks will generate $121 billion in ad sales in 2023, a 12% rise over 2022—there have also been signs of a slowdown following a recent peak. For example, of the 56 retail media launches since 2011, 31, or 55%, took place in 2021 and 2022, a recent analysis by digital agency Acadia found. So far this year, Acadia found that just one retail media network has debuted.