Measuring performance is critical to CPG brands’ retail media investments

Key stat: Following performance measurement is the most important factor in allocating budget to retail media, according to 56% of US consumer packaged goods (CPG) manufacturers, per a December 2023 survey from Skai and Path to Purchase Institute.

Beyond the chart:

• New ad formats, targeting options, and/or bid adjustments are also a top factor in budgeting (50%), per the survey.
• However, analytics and reporting limitations are a major barrier to retail media investment, ranked as the top challenge by 53% of all survey respondents (both CPG manufacturers and agencies).
• To secure investment from marketers and agencies, retail media networks need to provide them with full transparency around performance measurement and give them the ability to experiment with new ways to reach consumers.

Use this chart:

• Prioritize retail media network capabilities.
• Identify how to secure more retail media investment from brands/agencies.

More like this:

• Three quarters of US advertisers incorporate on-site ads in their retail media strategy
• Sizing up the retail media potential of in-store, streaming, and social media audiences
• Retail media will make up one-fifth of worldwide digital ad spend this year
• A guide to in-store tech and how it can fuel omnichannel retail media strategies

Methodology: Data is from the February 2024 Skai and Path to Purchase Institute, "The State of Retail Media 2024." 98 US advertisers were surveyed during December 2023. Of the respondents, 59% worked in agencies and 41% in consumer product manufacturers.