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On this episode of Brave Commerce, retail media analyst and consultant Andrew Lipsman joins hosts Rachel Tipograph and Sarah Hofstetter to provide a comprehensive exploration of the current state and future trajectory of this dynamic ecosystem, offering valuable perspectives for brands, retailers, platforms and technology partners.
Lipsman reflects on the significant transformation he has witnessed in the retail media ecosystem since 2018. What was initially a minor aspect of his coverage at eMarketer evolved into a dominant focus, comprising 80% of his analytical efforts by 2023. Now, as an independent consultant, Lipsman identifies 2024 as a pivotal year marking the transition to retail media 2.0.
The discussion revolves around two key aspects expected to shape the industry: the shift to off-site ads, with an emphasis on streaming TV, and the emergence of in-store retail media. Lipsman cites substantial growth projections for streaming TV, driven by the integration of retail media, and foresees digital screens becoming more commonplace in stores.
Lipsman acknowledges the debate around premium CPMs versus buying inventory directly, emphasizing the trade-offs between cost and effectiveness. Looking ahead three to five years, he envisions a revolutionized TV landscape with closed-loop measurement, foreseeing a significant impact on CPG and consumer brands.
A critical point of the discussion is the evolving relationship between retailers and platforms amid the deprecation of cookies. Lipsman foresees a shift in power dynamics, with retail media data gaining prominence due to its superior quality.
Another intriguing aspect he introduces is the overlooked role of product samples in the context of retail media. He sees product sampling as a highly effective form of media, especially in categories like CPG, health and beauty.
Key takeaways:
- Prioritize off-site ads, especially in the booming realm of streaming TV.
- Explore product sampling as an effective form of media, especially in CPG and beauty.
- Disperse budgets across diverse channels, with incremental allocations to retail media.
