Tap Into An Expert Ep. 6: Media Meets Merchandising: The New Era of Retail

The digital advertising landscape is undergoing a significant transformation, with Retail Media Networks (RMNs) emerging as a powerful force in the industry. We're excited to share insights from Eric Sheinkop 's recent conversation on the Tap Into An Expert Podcast with Drew Cashmore , a seasoned expert in retail media with an impressive track record at companies like Walmart Connect, Firework, and Vantage.

The Rise of Retail Media Networks

Retail media networks have experienced rapid growth in recent years, driven by factors such as the increasing value of first-party data and changes in consumer behavior. Drew's experience at Walmart provided a front-row seat to the evolution of RMNs. "When we started, retail media was seen as a way to offset e-commerce costs. Now, it's become a crucial growth engine for retailers," he explains. This shift in perception has led to the proliferation of RMNs, with hundreds now operating worldwide.

Innovation and Differentiation

As the market becomes more crowded, retailers are finding innovative ways to differentiate their offerings. Drew emphasizes the importance of leveraging unique data and customer insights to create value for advertisers. "It's not just about ad space anymore. It's about providing actionable insights that drive real business outcomes," he notes.

One area of innovation is the integration of artificial intelligence (AI) into RMNs. AI is transforming targeting capabilities, optimizing ad performance, and enhancing personalization. "We're seeing AI being used to predict consumer behavior, optimize bidding strategies, and even create dynamic creative content," Drew explains.

The Future of Retail Media

Looking ahead, retail media is poised to play an increasingly significant role in the digital advertising landscape. This growth presents both opportunities and challenges for the industry.

Drew predicts a trend toward consolidation in the RMN space. "As brands manage multiple retail media networks, we're likely to see partnerships and mergers emerge," he observes.

Another key trend is the evolving balance between on-site and off-site retail media. As retailers expand their digital footprints, we're likely to see more sophisticated omnichannel strategies that seamlessly blend in-store, online, and off-site advertising experiences.

Navigating Challenges and Opportunities

While the potential of RMNs is immense, there are challenges to navigate. Brands often feel influenced by retailers to invest in their RMNs, which can create pressure to ensure real value from these investments.

Drew advises brands to focus on value and measurable outcomes when investing in RMNs. "It's crucial to have clear KPIs and to demand transparency in reporting. Don't just advertise because you feel pressured – make sure you're getting real value," he emphasizes.

For retailers looking to launch their own RMN, Drew recommends focusing on unique value propositions. "Understand what makes your customer data special and how you can leverage that to create compelling advertising opportunities," he suggests.

As we look to the future, it's clear that retail media networks will continue to play a pivotal role in shaping the digital advertising landscape. By staying informed about these trends and leveraging expert insights like those shared by Drew Cashmore, businesses can position themselves to thrive in this exciting new era of retail media.

Listen to the Full Episode:

The full episode of our conversation with Drew Cashmore is embedded below, providing a deeper dive into the world of retail media networks. Click play to explore the insights and strategies discussed in this article.