Turbyne：零售媒體海市蜃樓

andbrandsthreatensretailmedia’spotential

RETAILMEDIA

MIRAGE

Howthegrowingdividebetweenretailers

Introduction:

Likeyou,wehavebeencaptivatedbytherapidriseofretailmediaanditspotentialto

boostmarketingefficiencyforbrands,whilecreatingnewrevenuestreamsforretailers.However,

whilespeakingtoretailersandbrandsabouttheirrespectiveretailmediaexperiences,weno-

ticedahighleveloffrustrationcomingfrombothsides.Thesefrustrationsseemedtocontradictthesweepinglypositiveretailmedianarrativewehadbeenreadingheadlinesabout

sinceitsinception-somethingseemedoff.

Thisdisconnectinspiredustodigdeeperintowhatwewerehearinganecdotally.Wewantedtounderstandretailers’andbrands’actualoveralllevelofsatisfactionwiththeretailmediaexperience.Wewantedtoidentifythepainpointsthatthreatenedthegreatpotentialofretailmediaanddiscoverthesolutionsneededtomoveforward.Ourgoalwastogettothe

truthbeyondthemirageofretailmedia.

Wecommissionedastudytolookdeeper,andourfindingsweresurprising,toputitlightly.

Thestudyuncoveredagreatdividebetweenbrandsandretailers-onethat

representsaseriousthreattothepotentialofretailmedia.However,italsorevealeda

surprisingconsensusonthesolutionsthatcanputretailmediabackontherightpath.Togettothecoreofthesequestions,wepartneredwithBWGStrategytoconductastudyofseniorstakeholders

whohavedirectexposuretoandinfluenceonretailmediadecisionsforbothretailers(n=225)and

brands(n=87).

Theinsightsunearthedcatalyzedustopivotandcreateasolutionwhosesole

purposeistosimplifyretailmediaforeveryone–retailers,brands,andtheir

partners.Thepromiseofretailmedia’ssuccessuptothispointhasbeensomewhatanillusion,

albeitonebasedonrealpotential.Nowthatweknowwheremanyofthechallengesand

disconnectsarebetweenretailersandbrands,wecanworkoncreatingthesolutionsrequiredtofix

them.

Theretailmediaecosystemwillneedtoevolveandbridgethedividebeforeitcantrulyrisetothefullpotentialweallknowithas.

Weareexcitedtoshareourfindingsbecauseweknowthattheywillhelpunlockthefullpotentialof

retailmedia.

Enjoy,

TheTurbyneTeam

01.

TableOfContents

Demographics

03

ExecutiveSummary

05

Challenge#1:TooMuchComplexity

07

Challenge#2:ConnectingIn-StoreandOnlineChannels09

Challenge#3:LackofTransparency&AccountabilityinReporting11

LookingAhead15

02.

2%

LOCAL

BUSINESS

open

Sr.Manager

31%

Director

19%

VP/SVP

22%

RetailerDemographics(n=225)

72%havesignificantroleinretailmediadecisions

61%

FoodRetailers

Whattypeofretailerdoyouworkfor?

23%

Grocery

20%

Mass

15%

DepartmentStore

8%

8%

Gasand/orConvenience

Drug

7%

HomeImprovement

5%

HomeGoods

4%

Club

re

4%

Apparel

4%

OutdoorandSportingGoods

Other

20%25%30%

10%15%

0%5%

47%

Mid-SizeRetailers

Approximatelywhatwasyourannualrevenuelastyear?

30%

25%

20%

15%

10%

5%

0%

$1-$2Billion

$2-$4Billion

$4-$6Billion

$6-$10Billion

$10-$15Billion

$15Billion++

28%

20%20%

19%

10%

4%

81%

inmediaormarketing

Whatisthebestdescriptionofyourrole

asitrelatestoretailmedia?

12%

DigitalMedia

29%

RetailMedia

Monetization

29%

BrandMarketing/Strategy

11%

ShopperMarketing/In-StoreMedia

8%

Product

Management

6%

Merchandising

5%

Other

69%

Director+

Whichofthetitlesbelowismostrepresentativeofyourlevelwithinyourorganization?

C-Level

27%

03.

$50-$100M

$100-$200M

$200-$500M

$500M-$1B

$1Billion++

50%

40%

30%

20%

10%

0%

Sr.Manager

Director

35%

41%

17%

16%

9%

16%

BrandDemographics(n=87)

67%havesignificantroleinretailmediadecisions

56%

$500m+

Approximately,whatwastheannualrevenue

ofyourbrandlastyear?

69%

ListedMass/FoodasPrimaryrevenuechannel

Whatisyourtoprevenuechannel?

Mass

Food

eCom

Dollar/Value

Club

43%

26%

26%

3%

1%

0%10%20%30%40%50%

64%

inBrand/Shopper/

Omnichannel

Whatisthebestdescriptionofyour

roleasitrelatestoretailmedia?

33%

eCom/OmniChannel

24%

Sales

23%

BrandMarketing/Management

9%

ShopperMarketing

5%

Innovation

3%

Trade

Marketing

2%

Digital/SocialMediaBuying

60%

Director+

Whichofthetitlesbelowismostrepresenta-

tiveofyourlevelwithinyourorganization?

C-Level

9%

SVP

3%

40%

VP

13%

04.

ExecutiveSummary

Retailmediahasrapidlygrownintooneofmedia’smostimportantchannels.USretailmediaadspendwillhit$45.15billionthisyear,upnearly20%over2022,accordingtoInsiderIntelligence.Theresearchfirmexpectsgrowthtocontinueacceleratingeachyearthrough2027,whenitwillreach$106.12billion1.

Butmassivegainsaren’tinevitable.Theymayevenbeunlikelyunlessretailmediarapidlyevolvestoaddressitsbiggestfundamentalchallenge:Brandsaren’tsatisfiedwiththeexperiencethey’re

receivingwhentheyinvestinretailmedia.Thisisaholisticproblemthatrunsallthewaythroughfromthebuyingprocesstoaccountmanagementtoreporting.Thesituationisleadingtofrustrationsthatwillhinderretailmedia’sgrowthiftheyaren’taddressed.

Thebigquestion:Canretailmediadeliveronitspromise?

There’saconcerninggapbetweenretailers’perceptionsofthe

valuetheirretailmedianetworks(RMNs)deliverandbrands’actuallevelofsatisfactionwiththoseRMNs.Roughlytwooutofthree(65%)

ofretailersbelievethatthelargestbrands($500m+annual

revenues)wouldgradetheirexperiencewiththeirRMNanA.Butthat’safarcryfromreality,asonly6%ofthosebrandswould

actuallygivetheirexperienceatopgrade

That’sjustoneofseveralindicatorsthatRMNsarefailingtodeliverontheirpromise.Inanotherexample,mostbrandssay“returnonrelationship”isakeydriveroftheirRMNinvestments-yetasignifi-cantsharepointedto“notenoughreturnontheirinvestmentwithmerchandising”asabarrierdiscouragingthemfromincreasing

theirspending.That’sleadingmerchandiserstoadvisebrandstoavoidinvestinginretailmedia.

PerceptionvsReality

Howwouldyou/yourbiggestbrandsgradetheretail

mediabuyingexperience?

%whogavean'A'

Brands$500m+

Retailers

IsRetailMedialivinguptoitshype?

onascaleof1-10

Brands

Retailers

65%

8.4

6%

6

4outof10brandscalledout

merchandisingforrecommendingtheyallocatebudgetoutsideofretailmediaasoneofthetopreasonstheydonot

workwithnewRMNs

PoorReturnonRelationship

4outof5brandsbrand

sayRORhasasignificant

impactontheirRMN

investmentdecisions

Halfstatedthat“notenoughRORwithmerchandising”wasabarriertoincreasingfutureinvestment

1

05.

/retail-media-ad-spend-will-more-than-double-by-2027

Allsignspointtoasignificantdisconnectbetween

retailersandbrandsthatneedstoberesolved

toensurethechannelmeetsitspotential.

WHY

Nearlyhalfofbrandsdonot

planonworkingwithmore

RMNsinthenext2years

RMNsyouplanonworkingwithinthenext24months*

50%

40%

30%

20%

10%

0%

Donotplan

onworking

Walmart

Target

Costco

Sam’sClub

Walgreens

DollarGeneral

Albertsons

Instacart

*Retailerswith9%+,CVSexcl.

Largerbrandssayitisprimarilyduetolackof

budget&resources.Manyarealsogetting

pressuredbymerchandisingtospendelsewhere.

Reasonsyoudon’tworkwithadditionalRetailMediaNetworks

(Brands$500m+)

Donothavebudgettoallocate

OtherRetailMediaNetworksdon’thaveenoughscale

Merchandisersatthoseretailersrecommendedusingthebudgetontradeinstead

DonothavetheteamtomanageyetanotherRetailMediaNetwork

NotsatisfiedwiththeRESULTSoftheRetailMediaNetworkswehaveworkedwith

IamnotawareorhaveyettobecontactedbyotherRetailMediaNetworks

NotsatisfiedwiththeEXPERIENCEoftheRetailMediaNetworkswehaveworkedwith

35%

30%

27%

24%

12%

7%

3%

Meanwhile,othercracksinthefoundationarebeginningtoemerge.78%ofbrandssayitisdifficultorverydifficulttojustifyincreasingtheirinvestment.That’stroublinggiventhatmostbrandsworkwithjustahandfulofRMNs;40%ofbrandsworkwithjustonetothreeRMNsandanother42%workwithfourtosixRMNs.Thechannel’sgrowthisdependentinpartonbrandsexpandingtheirspendingtootherRMNs.

Wefoundthatbrandsarevaluingexperienceoverresults.RetailersneedtorecognizethattheirRMNs’long-termviabilityandsuccessaredependentontheirabilitytobetterservetheircustomers(brands).

Thatstartsbygettingabetterhandleonwhatbrandsneedandwant.

Threeprimarychallenges:

Abuyingexperiencethatisinefficientandoverlycomplicated.

Adisconnectbetween

physicalanddigital

channels.

Reportingthatlacks

transparencyand

accountability.

AddressingthoseareaswillenableRMNstodeliverastrongervalueproposition.Otherwise,brandswon’thave,andwillnotbeabletojustify,thebudgetandteamsnecessarytomaketheplatformsworkwell.

06.

6%

65%

56%

30%

34%

4%

4%

1%

25

Media

Partners

22

Media

Agencies

23

AdTechPlatforms

15

Media

Partners

14

Media

Agencies

12

AdTechPlatforms

The3barrierstoincreasedRMN

investmentMOSTFREQUENTLYheardby

retailers

28%

Havingtoexecute

individualbuys

acrosseachRetail

MediaNetwork

Howwouldyou/yourbiggestbrandsgrade

theretailmediabuyingexperience?

Brands$500m+Retailers

ABCD

23%

Poor

ROAS/ROI

40%

Notenoughbudget

Challenge#1

Toomuchcomplexity

Retailmediahasrapidlyevolvedintooneofmedia’smostimportantchannels.GroupM

estimatesretailmediarevenueswillsurpasstelevision(includingCTV)revenuesby2028,whenretailmediaisexpectedtoaccountfora15.4%shareoftotaladrevenue2.

Thosenumbersarehardtoignore,whichiswhyanever-growingnumberofplayershave

enteredthespaceinrecentyears.Thereareover150retailmedianetworks(RMN)

worldwide,perMimbi3.Evenmoreretailersareenteringthespaceviapartnerships.Criteo’sRMN,forexample,offeredinventoryfrom210retailers,asofAugust20234.

Complexecosystem

Average#ofpartnersworkedwithinlast90days

Brands

Retailers

Whileitisunderstandablethatbothbrandsandretailerswanttoworkadiversearrayofpartnerstomaximizetheiropportunities,eachnewrelationshipaddscomplexitybecauseeachpartnerbringsitsownidiosyncraticneedstobemet.Giventhateverycompanyhaslimitedresources,thenetresultisthatbothbrandsandretailers’partnershipsaren’tas

successfulastheycouldbe.

Thosechallengesareevidentinbrands’current

frustrations,whichinclude:

40%ofretailerssaidthatbrandsexpressedhavingto

executeindividualbuysacrosseachRMNasaprimary

barriertoincreasingtheirretailmediaspend.

35%ofbrandscitedaprocessthatistoodifficultto

manageastheirtopbarriertoincreasedinvestment.

Manybrandsfindtheoverallbuyingprocess

underwhelming.Welloverathird(38%),wouldgive

theretailmediabuyingprocessagradeofCorlower.

ThosesystemicissuesarehinderingRMN'sgrowth

potential.Brandsdon’thavethetimenorresourcesto

devotetomasteringeachoftheRMNstheyinvestin.

Thatleadstolacklusterresults,whichthenstymies

futuregrowth.

2

3

/mid-year-advertising-forecast-2023/

07.

https://www.mimbi.io/retail-media-networks-list#:

~:text=The%20retail%20media%

20industry%20is,150%20retail%20media%20networks%20worldwide

4

/article/4622797-criteo-s-crto-q2-2023-earnings-call-transcript

Retailers

Brands

6%

40%Brandsworkwith1-3RMNs

Thismeansthatthemajority

ofbrandsdonotplanonworkingwithmorethan5or6RMNs.

Brandsworkwith4-6RMNs

DonotplanonworkingwithanewRMN

42%

44%

Whatarethe

opportunitiestodriveinvestmentinthe7thor8thRMN?

Theopportunity:

Brandsandretailersagreethatsimplifyingthebuying+sellingprocessisthekeytogrowth

Rankthebiggestgrowthdrivers

foryourretailmediarevenue

47%

Abilitytobuyandexecuteacross

multiplechannels/tacticsina

singlelocation

38%

Bringingitin-house

25%

Figuringouthowtoselltobrands

moreeffectively

22%

Bettermeasurementcapabilities

19%

Gettingourbiggestclientstospend

more

17%

Combiningonlinewithin-store

media

14%

Strongerorganizationalcoordina-

tionsupport

13%

Moreautomationinadopsand/or

salesprocesses

Activatingsmall/midsizedbrands

Whatwouldgetyoutospend

budgetwithmid-sizeretailers?

47%

Abilitytobuyandexecuteacross

multiplechannels/

tacticsinasinglelocation

47%

Ifdigitaltacticswereunifiedwith

in-storeformaximumscale

44%

Asingularcross-performanceview

acrossallchannels/

tacticsRetailMediaNetworks

30%

Iftheplanningprocesswasstan-

dardized

26%

Automatedbuyingprocess

22%

IwouldallocatebudgetifIwere

awareorcontacted

Despitetheirchallenges,brandscontinuetorecognizeRMNs’potential;only15%ofbrandssaiditis“verydifficult”tojustifyincreasedspend,whichshowsthatthereisopportunitytoconvertifretailerscanimproveprocessesandenablethemtomakeabettercase.

08.

Checkallofthetacticsthatshouldfallintothedefinitionofretailmedia

Thereisconsensusamongbrandsandretailers

aboutthenecessityofintegratingin-storeinto

retailmediaplatforms.Butalltoooftentoday

thoseconnectionsdonotexist.That’samajormissedopportunity.Bothpartiesfeelthatin-storetacticsare

essentialtoretailmedia.

Thatreflectsboththecontinuedimportanceofphysicalretail—particularlyincertaincategoriesthathaveseenfewersalesshiftonlinesuchasgroceryand

convenience—andtheinfluencethatin-storeretail

On-SiteDisplay

In-StoreDigitalSignage

On-SiteSearch

DigitalCoupons

In-StorePrintedSignageIn-StoreSampling/Demo

Off-SiteSearch

Off-SiteDisplay

FreeStandingDisplays

In-StoreEndCaps

Billboards

In-StoreRadio

DigitalReceipts

Checkout

Digitaloutofhome

CTV

TraditionalRadio

OnPremiseChargingStations

Bothbrandsandretailersagreethatin-store

tacticsbelongin

retailmedia.

57%

56%

55%

49%

47%

44%

42%

41%

41%

40%

40%

39%

36%

36%

33%26%26%

19%

Challenge#2

Connectingin-store

andonlinechannels

Whilein-storeretailmediaisstillinitsinfancy,itisalreadyclearthatitoffersanenormousopportunity.Physicalstoresaccountforover84%ofallretailsalesand70%ofaretailer’sreach,yetaretypicallynotincludedinretailmediaofferings.

Asretailersaugmenttheirphysicalin-storemediawithdigitaltacticstheyareopeningupamassiveamountofpotentialinventoryinlocationssuchascheckoutaisles,endcaps,storeshelves,coolerdoors,andelsewhere.Theycanthenusethosebottom-of-the-funneltacticsatshopperswhoareeagertomakeapurchase.Thisisdrivingafull-funnel,chanel-agnosticPOVonthetacticsthatshouldbeincludedinstandardretailmediaofferings.

Onascaleof1-10,howstronglydoyoufeelthatin-storetacticsshouldbeaddedtoyourretail

mediaoffering?

8.6

8.3

7.6

Brands&

Retailers

BrandsRetailers

09.

Challenge#2

Giventhekeyrolethatthein-storeexperienceplaysinconsumers’

purchasedecisions,brandsandretailerswerealignedonallocating

43%ofmarketingbudgetstoin-storeactivities.Butthat’s

dependentontheirabilitytoeasilyallocatethatspend.

Nearlythree-quarters(74%)of

brandsconsiderin-storemedia

“effective”or“veryeffective.”

Yetbrandsthinkin-storetacticsarefarmore

effectivethanretailers

Choosethetop5tacticsthataremosteffectiveatdrivingsales

Retailers

Brands

DigitalCoupons

On-SiteDisplay

In-StoreEndcaps

In-Storeprintedsignage(Shelfblades)

On-SiteSearch

FreeStandingDisplays

In-StoreSampling/Demo

Off-SiteSearch

In-StoreDigitalsignage

Off-SiteDisplay

Checkout

DigitalOutofHome

Billboards

CTV

In-StoreRadio

On-PremiseChargingStations

TraditionalRadio

Digitalreceipts

39%42%28%27%31%33%

32%

27%

26%

19%13%12%11%9%5%

1%

1%

1%

64%

63%

58%

55%

54%

48%

35%

29%

27%

33%

23%

27%

30%

17%

23%

17%

17%

28%

Theopportunity:

Despitethedifficultyjustifyingtheinvestmentinternally,mostbrandssay:

Aunifiedplatformcoulddrivesignificantgrowth.

70%ofbrandssaidtheywouldincreasetheirinvestmentbyanaverageof23%ifin-storetacticswerecombinedwithdigital.

Nearlyhalf(47%)ofbrandswouldstartspendingwith

midsizeretailersifdigitaltacticswereunifiedwith

in-storeformaximumscale.

10.

Challenge#3

26%

23%

21%

15%

6%

6%

3%

LackofTransparency

&Accountabilityin

Reporting

Morethanaquarter(26%)ofrespondentslisteddissatisfactionwithreportingasoneofthetop

threebarrierstoincreasingtheirretailmediainvestment.Notonlydomanyplatformshavelacklusterreportingstructures,there’salsolittlecontinuitybetweenthem,whichcanmakeit

difficulttogaugesuccess.

ThisisalsoevidentinthefindingthatTHREEINFIVEbrandsnotedROAS/ROIasoneofthetopthreebarrierstoincreasingtheirretailmediainvestment.

Brandshavetroublenavigatingmultiplereportingprocesses,whichlimitstheirabilitytomakenecessaryadjustments.Thosechallengesthenresultinbrandsfailingtogeneratethereturnstheyexpect,whichcausesthemtoquestionthevalueproposition.ThatstymiesgrowthasnearlyFOUROUTOFFIVEBRANDSfinditdifficultorverydifficultto

justifyincreasedspend.

Theopportunity:

26%ofrespondentschoosetheRMNstheyworkwithbasedonROAS/ROI.

PerceivedROI/ROAS

Perceivedbenefittooverallrelationshipwithretailer

Brandsalesatretailer

Retaileraudiencescale

Requiredspendcommitments

Easeofexperience

#ofchannels

0%5%10%15%20%25%30%

Whilenotsurprising,thatmakesitclearthatRMNswhostreamlinereportingcanandshouldseeinvestmentrise.

11.

LookingAhead

Retailmediahasmassivegrowthpotential.Butitwillonlyreachthoselofty

projectionsifretailerscangetabetterhandleonwhattheircustomers(brands)needandwant.

consensusamongbrands

There’sastrongandretailersthatthekeytogrowthwillstemfromunifyingthechannelsandsimplifyingthebuyingandsellingprocess.

Theydon’thave,andshouldn’trequire,significantbandwidthtolearntheinsandoutsofmultipleidiosyncraticplatforms.

ROI/ROAS.

Instead,brandsandretailersbothneedaneasy-to-navigateplatformthattiestogetherin-storeandonlineretailmediaandthatoffersreportingthatmakescleartheir

There'saclearpayofffor

inturn,makesiteasierforexecutiv