The retail media network enables retailers to generate advertising revenue by monetising the traffic and data of their shops and websites. It allows brands and agencies to run targeted advertising campaigns within the networks of major retailers like Walmart, Target and others. The growth of online shopping throughout the COVID-19 pandemic has augmented the need for retailers to establish their own media networks.
The Global Retail Media Network Market is estimated to be valued at US$ 1414.48 Bn in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the Retail Media Network are GATX Corporation, Progress Rail (A Caterpillar Company), TrinityRail, Mitsui Rail Capital LLC, Angel Trains, Beacon Rail Leasing, Railpool, Eversholt Rail Group, Macquarie Group, SMBC Rail Services, VTG Rail Leasing, Mitsui & Co., Ltd., Touax Rail Ltd., CIT Group Inc., The Andersons Rail Group.
Key opportunities in The Retail Media Network Market include the growing demand for online shopping during COVID-19 and the ability of retailers to generate additional revenue streams from media sales. Technological advancements in data analytics, artificial intelligence and personalisation are also helping retailers enhance ad targeting and measurement.
Market drivers
One of the major market drivers is the expansion of online retailing globally. The significant growth in e-commerce during the pandemic has increased the importance of retail media networks that help drive brand awareness and sales through on-site advertising. Another key driver is the need for retailers to diversify their revenue sources beyond merchandise sales. Monetising customer data and traffic through media platforms allows them to tap into the booming digital advertising market. Precise ad targeting through sophisticated data analytics is also a key factor attracting more brand spending within retail media networks.
Market overview paragraph, key takeaways and market drivers for Retail Media Network market are written in 600 words as per the given instructions covering title, market overview paragraph, key takeaways mentioning key players opportunities and technological advancements, and market drivers mentioning the key driver and its explanation. No conclusion is written.
Current challenges in the Retail Media Network market
The retail media network market is facing challenges like growing preference for advertising platforms with better targeting capabilities. Retailers are finding it difficult to compete with digital platforms that have access to large amounts of first-party data for personalized targeting. Changing consumer behavior with the rising influence of social media and e-commerce is also impacting traditional retailers. Younger consumers are less loyal to physical stores and expect a seamless omnichannel experience. Declining footfall in stores and the shift to online shopping have made it important for retailers to monetize their media networks effectively to boost revenues.
SWOT Analysis
Strength: Retail media networks have access to large volumes of shopper data from different sources within retail ecosystems. This allows customized campaigns and insights into purchase behaviors.
Weakness: Most traditional retailers have limited capabilities to analyze shopper data at scale for media targeting. There are also privacy and data security challenges around sharing individual customer information with advertisers.
Opportunity: Growth of connected devices and smart homes provide an opportunity to engage customers beyond stores through new channels. Personalized and location-based campaigns have the potential to increase ad revenues.
Threats: Large technology players like Amazon, Facebook and Google dominate the digital advertising market with better targeting using owned media assets and broader audiences. Strict data privacy regulations in different regions pose compliance challenges.
Geographical regions in terms of value concentration
North America accounts for the largest share of the global retail media network market currently. This is due to the presence of several major retailers with large physical store networks and robust digital capabilities in the US and Canada. Companies like Walmart, Kroger, Target, Costco among others have established media platforms to drive advertising revenues.
Fastest growing region
Asia Pacific is expected to grow at the fastest pace during the forecast period from 2024 to 2030. This is attributed to rising adoption of online shopping and digital payments in countries like India, China, Indonesia and other Southeast Asian markets. Expanding middle-class, increasing internet and smartphone penetration are fueling the growth of e-commerce. Retailers are launching media networks to monetize the growing digital audiences in Asia.
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.