Global revenue forecast of $121.9 billion in 2023; NRF, in New York, deals with the subject and technologies for customer loyalty
The 2023 edition of the NRF (National Retail Federation) starts this Sunday (15th) and ends on Tuesday (17th). There are 112 years of history since 1911, but with the same purpose: to contribute to the construction of the values that dictate the relationship between retailers and consumers. With 3.8 million trademarks on its roster, this year’s NRF will have over 40,000 attendees and 800 exhibitors. The event will shed light on the trends that will impact physical and digital commerce, above all due to the consolidation of both as a media environment, retail media, and with the realization that does not want to remain silent: consumers have changed.
Although they are returning to stores, online purchases and searches, which grew vertically during the pandemic, have become part of the mindset of this essential actor for retailers, who are increasingly demanding and ready to seek out a competitor if their needs are not met. being filled. Shoppers’ journeys, therefore, are endless, as Fernando Guntovitch, CEO and founder of The Group, clarifies. Everything arrives and passes through retail. The consumer is the great actor and is at the heart of the whole issue, summarizes Guntovitch.
The natural flow of customers to points of sale, however, is increasingly transforming retail brands into authentic publishers. The advance of retail media indeed. The POS allocate their areas and it is common to see the big consumer brands using these spaces with triad actions that go beyond the shelves to materialize thematic stands that talk to the flow of shoppers to increase sales. As a media channel, in the digital era the increase in investments is constant and consistent.
Retail media is now the fourth largest advertising medium and will see an increase of 10.1%, taking its ad spend to $121.9 billion globally by 2023. We will see retail media networks becoming a key part of of marketing strategies and greater experimentation in social commerce, clarifies the English consultancy Warc, which is part of the Ascential group.
The Future of Digital Commerce report, part of Warc’s annual Marketers Toolkit, explores the intersection of marketing and commerce by examining the future of digital commerce as it relates to brand marketers, their agencies and their retail partners. It delves into three main areas: retail media, organizational readiness, and social commerce.
Warc also notes that retail media is already the fourth option for displaying advertising content. Ad spend more than doubled during 2019-2022, surpassing audio, OOH and film, publishing and OTT/streaming. If the retail media industry follows its current path, it will become more valuable to advertisers than linear TV by 2025. Retail media networks are growing in number and importance and will play an outsized role in shaping digital commerce. . Retail media growth is poised to do in the 2020s what search-driven digital advertising growth did in the 2000s and social media did in the 2010s. 2023 will see a sea change in retail media competition . Brands will need to go beyond understanding platforms to mastering how they can use them to connect with consumers, clarifies Warc.
The digital revolution in tangible retail. The so-called social commerce will generate sales of US$ 660 billion (but in 2021 it has already reached US$ 295 billion), of which US$ 80 billion in the United States alone, according to Warc, by 2025. This volume is the vector that drives retail media. But there is a catch in the view of Jacqueline Baker, director of experience at VMLY&R. Unfortunately, this ever-expanding and complex new landscape (retail media) can be challenging, not least because it has converted retailers into accidental publishers.
Warc brings the counterpoint of Patrick Miller, founder of Flywheel. I think of this emerging space as more than retail media. It is a closed-loop average that allows consumer brands to deterministically see the value they create through investment in media across the entire funnel. This is a raising of the bar for the industry and can only be decoupled from Gross Goods Value (GMV) growth.
However, the CAC (Cost per Acquisition), even with this volume of consumers available on the platforms, should be considered as observed by Ryan Monigan, vice president of Insights & Strategy, at WhyteSpyder, heard by Warc.
Winning in digital commerce means gaining a better understanding of how your shopper navigates your site. You will need to move consumers from their actual path to their desired path and calculate the level of investment needed to make this happen.
Human behavior
But agents watching retail media evolve, both in digital and in physical stores, need to pay attention to the Accenture Life Trends 2023 report, which considers changes in customer behavior as a mold for business, culture and society.
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