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The ability to build more powerful retail media networks offering higher-margin revenue streams than their core business has become a factor in M&A. The Kroger/Albertsons merger, as just one example, would reach about 85 million households nationwide, rivaling the reach of Walmart.
Competition is heating up across other industry verticals, especially travel/hospitality. Marriott International announced their Travel Media Network, powered by Yahoo. Watch for more data partnerships between retail media networks and publishers, following fast on the heels of partnerships such as Kroger and Roku, and Walmart and Paramount.
A question for 2023 is: Does retail media networks as a name survive? When do they just become another media channel or arrow in a marketer’s quiver?
2023 is the year of attention
After 60+ years of looking at reach, frequency, ratings points and incrementality—the game is changing. Increasingly marketers and agencies are looking beyond the “opportunity to see” and onto attention metrics, business outcomes, sales and sales surrogates. In the new year, attention will get the attention it deserves.
The creator economy will continue to challenge the Hollywood economy
The creator economy is redefining what is must-see TV. YouTube accounts for more than 50% of ad-supported streaming watch time on connected TVs among people ages 18 and up. Where once brands had to buy TV spots in the Hollywood economy to generate awareness, there’s now a serious alternative economic engine that arguably has equal or greater power among consumers.
How powerful is that engine, really? As just one example, consider Forbes’ Top 50 creator Charli D’Amelio. Her family now owns a consumer product company (D’Amelio Brands) valued at $100 million as a pre-revenue, pre-employee and pre-product company, not to mention a $25 million venture capital fund to back nascent companies in everything from insurtech to consumer brands.
Podcasting’s flexibility will accelerate already high growth
U.S. podcast ad spending—which already accounts for nearly one-third of digital audio services ad spending and is projected to surpass $2 billion in 2023—might grow even faster. Dynamic ad insertion, enhancements to transcription technology and emerging solutions from IAB and IAB Tech Lab to support brand safety and suitability make it an even more attractive and flexible medium.