Retail media networks will challenge Google and Meta in Canada. While the duopoly will command 60.4% of digital advertising in Canada in 2023, retail media networks—including Amazon Media, Walmart Connect, and Loblaw Media in Canada—are catching up with ecommerce-related search and display.
Consumer purchase history is the main attraction. The duopoly relies on behavioral data (e.g., search history on Google, interests and browsing activity on Meta’s properties). But retail media relies on rich, first-party consumer purchase data.
Retail media offers retailers serious margins. Retail media networks (RMNs) are gaining ground as inflation-hit retailers look for ways to boost profits and capitalize on the shift to online shopping. RMNs could provide margins of between 40% and 80%, while Alvarez & Marsal forecasts that average retail margins are only 5%.
Advertisers have followed shoppers’ digital footfall. In the UK, ecommerce’s share of total retail sales is among the highest in the world. Brands want to reach their customers wherever they are, and retail media looks like an increasingly safe bet.
More retailers will launch their own RMNs.
Brands will increase their investment in retail media.
In-store will become a bigger part of the RMN equation.