Retail Media: a Revolution in Digital Advertising?

With the widespread adoption of digital practices and the surge in e-commerce, traditional media advertising is gradually being supplanted by online advertising on social networks, websites and search engines.

The latest form to evolve: the retail media, the online equivalent to the aisle-end displays in physical stores, which involves monetizing the advertising space of major retailers and their customer data, as pioneered by Amazon.

" Mass-market retailers hold a huge amount of first-party data and have understood the benefits of monetizing it. This allows advertising to target consumers more effectively while respecting their privacy. "

Micaella Feldstein, Tech & Data specialist

Retail media has enjoyed significant growth in recent years, driven by the expansion of e-commerce, the scheduled phasing-out of third-party cookies, the need to target marketing campaigns more effectively and the decline of paper catalogues.

However, many challenges lie ahead, including the harmonization of key performance indicators (KPIs) to better assess an advertising campaign’s performance, and compliance with EU regulations (DSA and DMA) that are unfavorable to marketing on online platforms and marketplaces. In addition, retailers must develop partnerships and acquisitions to compete with industry giants, and must enhance their data sharing in data clean rooms.

In her latest study, Micaella Feldstein, Tech & Data specialist at Natixis CIB, analyzes the keys to success for this new wave in the digital transition of advertising and the challenges it faces.

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