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£121bn Expected To Be Spent On Retail Media This Year

As the retail landscape continues to evolve, the way brands connect with consumers is also changing. A new report by Warc, "The Future of Digital Commerce," reveals that retail media spend is expected to reach £121.1 billion by the end of the year, representing a 13.7% growth from last year.

£121bn Expected To Be Spent On Retail Media This Year
Source: Depositphotos

One of the key drivers of this growth is the increasing adoption of artificial intelligence (AI) in retail media. AI-powered tools are enabling hyper-personalized campaigns, predictive forecasting, and optimized marketing strategies. Moreover, AI is being used to integrate different data sets, providing a more comprehensive view of consumer behavior.

The report also highlights the importance of omnichannel growth, with retail media ads featuring personalized calls to action resulting in a 42% higher conversion rate compared to generic versions. This emphasis on personalized experiences is a key trend in the industry, as brands seek to stand out in a crowded market and build strong relationships with their customers.

Another area of growth is gaming commerce, with more brands partnering with platforms like Roblox to create immersive brand experiences. This format offers a unique opportunity for advertisers to engage with consumers in a new and innovative way.

Source: Depositphotos

However, with the phase-out of third-party cookies looming, measuring data is becoming a major priority for brands. To address this challenge, many companies are turning to data clean rooms. These platforms provide aggregated and anonymized user information, protecting user privacy while providing advertisers with non-personally identifiable information.

In April, IAB Europe published a new set of guidelines for retail media investment, which aim to provide a framework for brands to compare the impact of their retail media spend. The guidelines were developed in partnership with 15 retail media firms and come after 70% of buyers reported a lack of standards for retail media investment.

The future of retail media is looking bright, with AI-powered tools, omnichannel growth, and gaming commerce all driving growth and innovation. However, with the phase-out of third-party cookies on the horizon, brands must adapt to new data measurement strategies to ensure their continued success. By leveraging data clean rooms and other innovative solutions, brands can continue to build strong relationships with their customers and drive business growth.

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