Driven by the growth of digital retail, especially during the first years of the Covid-19 pandemic, the retail media it is considered by many to be the third wave of digital advertising. According to a survey carried out by eMarketer in partnership with Equativ, by 2024, the sector will be responsible for about 1/4 of advertising spending by companies, reaching an investment of US$61 billion.
In Brazil, the technique is still on the rise, but the example of other markets shows that growth in the country should not take long.
“O retail media is the second fastest-growing ad format in the United States, behind only Connected TV (CTV)”, points out Caroline Millié Figueiredo, manager of Marketing yes Equivalent.
Essentially, the retail media It’s simple: the advertiser buys space in an establishment and the ad is displayed to visitors to the location. But, a deeper analysis demonstrates that this is only the tip of the iceberg.
“Under the surface, there is a complex value chain that involves not only advertisers and retailers, but also agencies, aggregators, delivery services that partner with retailers, social networks, publishers, streamingdemand-side platforms (DSPs), supply-side platforms (SSPs) and other ad technology providers,” explains Khalil Yaghi, Country Managing Director yes Equivalent.
In Latin America, networks of retail media divided into three segments: marketplaces digital, retailers and intermediaries such as Uber and IFood, and retailers’ websites have diminished the dominance of traditional search engines.
“The survey showed that 42.8% of Latin American consumers prefer to research purchases on retail websites and applications, or multi-category portals; 41.4% seek information on social networks and profiles of influencers, while search engines and recommendations from friends and family come next, with 35% and 26.7%, respectively. This demonstrates that multi-category sites, such as Amazon and Mercado Livre, are now on an equal footing with the main search engines”, says Yaghi.
According to Caroline, the professionals of marketing that rely predominantly on traditional search tools should observe these behavioral changes and, based on this, modify their strategies in order to meet market expectations.
“It will help them meet consumers where they are while they are in a buying mindset. The professionals of marketing can effectively leverage retailers’ primary datasets to tailor their ads to the right audience at the right time, reducing the amount of time consumers need to research a particular product. The faster they find what they need, the faster they can make a purchase and get on with their day.”
The recovery in advertising spending in Latin America will add fuel to the retail media fire, as advertising professionals marketing brands seek to convert consumers closer to the purchase action.
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