February 2, 2023.
According to a new survey of its members by the Association of National Advertisers, consumer brands don't have a lot of choice when it comes to buying ads from retail media networks.
Eighty-eight percent of advertisers said they felt pressured to buy ads. Forty-seven percent said that retailers exert a lot of influence over their purchases. Forty-one people said that retailers exert some influence. Two percent of people said they didn't feel pressured to buy advertising.
According to the report, those interviewed said that using RMNs was a choice, but a necessity. Product sales, shopper marketing and business planning goals are some of the factors that influence buying decisions. Advertisers are concerned that the budgets of the RmN have not changed despite the fact that spending on marketing has been cut.
Fifty-eight percent of the people who responded said they have used them. Fifty-three percent of those who have made purchases have gone to Amazon.com.
As more retailers create their own networks, the list of places where advertisers go is growing. 40 percent are buying from five to nine and 16 percent are using 10 or more.
Advertisers are attracted to the big ones. Almost all of the purchases are made from Amazon or Walmart. Sixty-five percent use Target and 61 percent use Kroger. The Dollar General, Walgreens, and HEB stores are the most often used.
The good news for retailers is that consumer brand companies will continue to spend on RmNs. Fifty-eight percent of people think their spending will go up. No one said that the cutbacks were happening.
75 percent of advertisers say that is the most important role when it comes to promoting their products. Many expect improvements to be made to deliver on key performance indicators, as 52 percent think that the value of RmNs is going to increase.
Consumer brand spending on retail media networks is compared to other types of trading partner spending. Where do you think the improvements will be in the near future?
Please practice The RetailWire Golden Rule when submitting your comments. BraintrustConsumer brand spending on retail media networks is compared to other types of trading partner spending.
