DoubleVerify report on Retail Media spotlights Key Trends for advertisers in 2024

DoubleVerify report on Retail Media spotlights Key Trends for advertisers in 2024
Buying Online

A new report from DoubleVerify (DV), released this week, reveals that retail media networks (RMNs) are rapidly gaining traction among advertisers, particularly in the US.

The study found that nearly all US respondents (87%) are already using RMNs and a majority (83%) plan to increase their spending on this channel in the coming year.

Key Findings from the Survey

  • The US Leads the Way: US advertisers are the most enthusiastic adopters of RMNs, with 87% reporting that they use them and 83% planning to increase their spend. This is followed by the UK (78% and 70%) and Germany (67% and 63%).
  • The Importance of Trust and Transparency: Nearly all (91%) respondents buying RMN inventory are working with an ad verification partner today. This reflects the growing demand for quality and transparency in the digital advertising industry.
  • Brand and Agency Benefits: Advertisers are primarily using RMNs to reach target audiences (37%), drive brand awareness (32%), and increase in-store or online sales (50%). Agencies focus on impressions/reach (43%).
  • Big E-commerce Representation: Amazon Advertising is the most widely used RMN, particularly in the US, UK, and Germany.
  • Reasons for Choosing RMNs: Advertisers are primarily using RMNs to target specific demographics and product interests (40%), reach consumers at the point of purchase (37%), and attract first-time customers (45%).
  • Adoption Challenges: The primary challenges of using RMNs are limited targeting options (30%), constrained on-site ad space (30%), high costs (30%), and lack of ad quality verification by third parties (30%).
  • RMNs Garner High Spend But Strong Return: While RMN CPM rates are higher than other channels, 61% of buyers believe RMNs perform better than other channels in terms of ROAS.

Overall Insights

The report highlights the growing importance of RMNs in the digital advertising landscape. Advertisers are increasingly recognizing their value in reaching target audiences and driving sales, especially as third-party cookies phase out. However, there are also challenges that need to be addressed, such as limited targeting options, constrained ad space, and high costs.

Recommendations for Advertisers and Retailers

  • Advertisers should focus on maximizing their return on ad spend (ROAS) by clearly defining their goals and using appropriate targeting and measurement techniques.
  • Retailers should invest in enhancing the quality and transparency of their RMNs to attract and retain advertisers.
  • Both advertisers and retailers should work together to develop standardized measurement and optimization frameworks to drive better performance and efficiency.

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