According to Statista statistics, the global Retail Media Network (RMN) market size has reached US$62 billion in 2023, and is expected to exceed the US$100 billion mark by 2026. As third-party cookies are phased out, retail media networks have become increasingly important in the digital advertising space. We will take you to understand what a retail media network is, predict the development trend of RMN in the cookieless era, and discuss its impact on the advertising industry ecology, including its advantages and challenges.
What is Retail Media Network (RMN)?
Retail Media Network, or RMN for short, refers to a system in which retailers use their own websites, applications and other digital assets to provide advertising services to advertisers. These ads are often targeted at consumers shopping on the retailer’s platform, based on their behavioral data. In short, RMN allows retailers to fully leverage the value of their first-party data and provide efficient and accurate advertising solutions.
The advent of the cookieless era
As consumers' demand for privacy protection increases, browser giants such as Google and Apple have successively announced the phasing out of third-party cookies. Google Chrome is expected to completely ban third-party cookies in 2024, a move that will have a profound impact on the digital advertising market. The disappearance of third-party cookies makes traditional cross-site tracking and ad targeting more difficult, and advertisers and marketers need to find new solutions to continue to deliver ads accurately.
The development trend of RMN in the cookieless era
In the context of the gradual disappearance of third-party cookies, retail media networks will become an important force in the digital advertising market due to their reliance on first-party data. Here are a few major trends:
1. Increased value of first-party data
Retailers have large amounts of first-party data, including purchase records, browsing behavior, and member profiles. This data is not only highly accurate, but can also be used legally and compliantly, making RMN more competitive in the cookieless era. Advertisers will rely more heavily on data provided by retailers for target audience analysis and advertising placement.
2. Enhancement of personalized advertising
Leveraging first-party data, retail media networks are able to deliver highly personalized advertising content. This not only improves the relevancy of ads, but also enhances the consumer shopping experience. As technology advances, RMN will be able to better understand and predict consumer needs, allowing for more targeted advertising.
3. Integration with other advertising platforms
In order to improve advertising effectiveness, RMN will gradually integrate with other advertising platforms (such as DSP, SSP) to form a more comprehensive advertising ecosystem. This will help advertisers better manage and optimize their advertising campaigns and achieve synergies across multiple channels.
4. Importance of privacy protection and compliance
As privacy regulations become increasingly stringent, retail media networks need to pay greater attention to privacy protection and compliance. This means RMN will invest in data security technology and establish transparent data usage policies to gain consumer trust and support.
The impact of RMN on the advertising industry ecology
The rise of retail media networks will have a profound impact on the advertising industry ecology. The following is an analysis of its main advantages and disadvantages:
Advantage
Efficient advertising: RMN uses first-party data for advertising, which can improve the accuracy and relevance of advertising, thereby increasing conversion rates and return on investment (ROI).
Improve consumer experience: By providing personalized advertising content, RMN can improve consumers' shopping experience and increase consumers' brand loyalty or willingness to consider purchasing.
Data transparency: Because first-party data comes directly from retailers, advertisers have access to higher quality and transparent data, which helps optimize advertising strategies.
challenge
Data silos: Data between different retailers are often siled, which limits the ability to integrate and analyze data across platforms and may lead to limitations in advertising.
Pressure on privacy protection: With the strengthening of privacy regulations, RMN needs to invest a lot of resources to ensure data security and compliance, which may increase operating costs.
Increasing competition: As more and more retailers enter the RMN market, competition will become increasingly fierce, and advertisers need to find the most suitable partner among the many options.
In Conlusion
Retail Media Network (RMN) will usher in important development opportunities in the cookieless era. With its effective use of first-party data, RMN will play an increasingly important role in the digital advertising market. However, as privacy regulations tighten and market competition intensifies, RMN also faces a series of challenges. Advertisers need to flexibly respond to these changes and take full advantage of RMN while ensuring compliance and data security to succeed in the new advertising ecosystem.
What is Retail Media Network (RMN)?
Retail Media Network, or RMN for short, refers to a system in which retailers use their own websites, applications and other digital assets to provide advertising services to advertisers. These ads are often targeted at consumers shopping on the retailer’s platform, based on their behavioral data. In short, RMN allows retailers to fully leverage the value of their first-party data and provide efficient and accurate advertising solutions.
The advent of the cookieless era
As consumers' demand for privacy protection increases, browser giants such as Google and Apple have successively announced the phasing out of third-party cookies. Google Chrome is expected to completely ban third-party cookies in 2024, a move that will have a profound impact on the digital advertising market. The disappearance of third-party cookies makes traditional cross-site tracking and ad targeting more difficult, and advertisers and marketers need to find new solutions to continue to deliver ads accurately.
The development trend of RMN in the cookieless era
In the context of the gradual disappearance of third-party cookies, retail media networks will become an important force in the digital advertising market due to their reliance on first-party data. Here are a few major trends:
1. Increased value of first-party data
Retailers have large amounts of first-party data, including purchase records, browsing behavior, and member profiles. This data is not only highly accurate, but can also be used legally and compliantly, making RMN more competitive in the cookieless era. Advertisers will rely more heavily on data provided by retailers for target audience analysis and advertising placement.
2. Enhancement of personalized advertising
Leveraging first-party data, retail media networks are able to deliver highly personalized advertising content. This not only improves the relevancy of ads, but also enhances the consumer shopping experience. As technology advances, RMN will be able to better understand and predict consumer needs, allowing for more targeted advertising.
3. Integration with other advertising platforms
In order to improve advertising effectiveness, RMN will gradually integrate with other advertising platforms (such as DSP, SSP) to form a more comprehensive advertising ecosystem. This will help advertisers better manage and optimize their advertising campaigns and achieve synergies across multiple channels.
4. Importance of privacy protection and compliance
As privacy regulations become increasingly stringent, retail media networks need to pay greater attention to privacy protection and compliance. This means RMN will invest in data security technology and establish transparent data usage policies to gain consumer trust and support.
The impact of RMN on the advertising industry ecology
The rise of retail media networks will have a profound impact on the advertising industry ecology. The following is an analysis of its main advantages and disadvantages:
Advantage
Efficient advertising: RMN uses first-party data for advertising, which can improve the accuracy and relevance of advertising, thereby increasing conversion rates and return on investment (ROI).
Improve consumer experience: By providing personalized advertising content, RMN can improve consumers' shopping experience and increase consumers' brand loyalty or willingness to consider purchasing.
Data transparency: Because first-party data comes directly from retailers, advertisers have access to higher quality and transparent data, which helps optimize advertising strategies.
challenge
Data silos: Data between different retailers are often siled, which limits the ability to integrate and analyze data across platforms and may lead to limitations in advertising.
Pressure on privacy protection: With the strengthening of privacy regulations, RMN needs to invest a lot of resources to ensure data security and compliance, which may increase operating costs.
Increasing competition: As more and more retailers enter the RMN market, competition will become increasingly fierce, and advertisers need to find the most suitable partner among the many options.
In Conlusion
Retail Media Network (RMN) will usher in important development opportunities in the cookieless era. With its effective use of first-party data, RMN will play an increasingly important role in the digital advertising market. However, as privacy regulations tighten and market competition intensifies, RMN also faces a series of challenges. Advertisers need to flexibly respond to these changes and take full advantage of RMN while ensuring compliance and data security to succeed in the new advertising ecosystem.
