The consumer experience is often forgotten in the frenzy of building a media business on a retail platform, according to research by Epsilon, Publicis' global advertising and marketing technology company.
The research, conducted in partnership with Phronesis Partners surveyed 689 mid- to large-sized brands and retailers across 12 countries between January and March 2023.
Retail media is now seen as a key part of advertising strategy following the deprecation of third-party cookies. Two-thirds of Australian advertisers and agencies who have used retail media now consider it as part of their holistic media planning, according to IAB Australia.
“The consumer experience is too often overlooked in the retail media frenzy,” said Joe Doran, chief product officer at Epsilon.
“We’re so caught up in the hype around the latest offerings that we ignore the fact that fragmentation leads to poor advertising experiences and frustrated shoppers.
"We believe that solutions that focus on messaging individual shoppers across channels deliver better performance.
"Brands want to talk to existing and potential in-market shoppers.
"Retailers should facilitate those conversations at scale and across channels that can reach in-market shoppers wherever they may be in the consumer journey. So, when we put the individual shopper at the center of the advertising, everyone wins.”
Key findings from the study include:
- brands and retailers are frustrated by fragmentation…respondents identified inconsistent targeting and disparate reporting across channels/tactics as the top inefficiency drivers of retail media
- but shoppers pay the price. Almost two-thirds (64%) of respondents agree that retail media networks with multiple technology providers have a negative impact on shoppers
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