IAB forecast that advertising investment in retail media
in Brazil can reach a total revenue of BRL 2.6 billion in 2023
A phenomenon that grows exponentially each year in the wake of the development of digital channels to the point of being called the third global wave of advertising – the retail media segment. This is an advertising strategy that allows brands to place advertisements within the digital spaces of retailers, physical or online. The difference between this type of advertisement and the traditional ones is that the data used for segmenting offers is provided directly by the retailer itself, instead of independent advertising platforms such as Google Ads, for example.
Segmentation is based on information from users already registered and collected by the retailer. This means that the information collected is from people who already have an account on the retailer’s sales platform website and have already given their consent to the use of data. The advertising brand pays to include its products and advertisements on the platform. The retailer, in turn, uses its information about shoppers to segment the ads, directing them to the right target audience.
The numbers in this market are impressive. According to the North American company Statista, which compiles several retail studies and sources, the forecast is that retail media revenue already moves US$ 168 billion globally. In the United States, it should generate nearly US$75 billion in profits over the next five years, according to a study by the BGC and Google.
The survey also shows that advertiser spending on retailers’ own channels is expected to grow at a rate of 22% per year. When measuring the representativeness of retail-related advertising revenue lines in relation to the budget dedicated to the advertising industry, China leads the ranking with around 40% of participation, while the US reaches around 14%.
In Brazil, there are still no specific studies on retail media. But, at the beginning of this year, emarketer released a study showing that Brazil had prospects for growth in e-commerce sales (17%) and investment in advertising (11.3%) greater than the world average. According to an analysis carried out by the Brazilian Association of Electronic Commerce (ABComm), e-commerce will reach BRL 185.7 billion in 2023 alone, and expectations for the next four years are also on the rise.
According to them, expected revenues of BRL 205 billion in 2024; and BRL 225 billion in 2025. For 2026 and 2027, the estimate was BRL 248 billion and BRL 273 billion, respectively.
Mnica Fukumoto, business analytics manager at the DP6 agency and president of the retail media committee at the IAB institute, says that the IAB and other entities are working this year to evolve in mapping the Brazilian market. One of the initiatives that the IAB leads is the steering of committees. The committees are spaces dedicated to the discussion of relevant topics involving digital advertising, seeking the sustainable development and evolution of the sector and the promotion of good practices in the ecosystem as a whole. The meetings of these committees result in the production of various materials for the market, such as guides, reports, dissemination of good practices, surveys, etc.
She clarifies that the IAB’s retail media committee was created last year and has as its main objective the understanding and adoption, on a larger scale, of retail media in digital advertising and in brand strategies. Paulo Schiavon (committee vice president) and I mediate and encourage meetings between the different players involved in this ecosystem (retailers, advertisers, platforms and agencies) in search of greater market standardization, evolutions in formatting as a business and new communication strategies , and greater transparency and visibility into data and results.
In October last year, the whitepaper Retail media: the third wave of digital advertising was published, mapping the main characteristics, transformations and trends of the online retail scenario in Brazil. One of the data he brought is the prediction that advertising investment in Brazilian marketplaces should grow 550% in 2023, reaching a total revenue of R$ 2.6 billion.
Another initiative on the subject that counts on the collaboration of DP6 and can be cited the research Retail media insights: the panorama of the media in retail in Brazil, which aims to understand more in detail how companies are working with the media in retail here in Brazil. In this case, it is a survey carried out by Newtail with the support of DP6 and is expected to be released in June. In addition to the committees, the IAB promotes other types of initiatives to disseminate knowledge and support the market, such as, for example, Masterclass #5 | retail media: from the practical strategy, carried out at the beginning of this year.
Read the full story in the May 8 issue
(Credit: Emiliano Vittoriosi na Unsplash)
