Retail Media Networks: Transforming Canadian Retail

 
At the Interactive Advertising Bureau of Canada’s (IAB Canada) Business of Digital: Report on Data 2024 event on November 27, 2024, IAB Canada and Retail Council of Canada (RCC) unveiled the first-ever barometer for Retail Media Networks (RMNs) in Canada. This groundbreaking survey of IAB and RCC members revealed how RMNs are rapidly reshaping the retail and advertising landscape, presenting both exciting opportunities and pressing challenges.

Key Insights

The survey highlighted the swift adoption of RMNs, with more than 60% of respondent agencies and brands already partnering with retail media suppliers. Most media buyers work with 2-3 vendors and report high satisfaction, underscoring RMNs’ potential as a trusted channel. Nearly 90% of respondents view RMNs as essential revenue drivers, and 70% credit them with fostering stronger partnerships between brands and retailers.

RMNs also stand out for their data-driven advantages, offering unparalleled tools such as:

• Campaign Effectiveness: Accurate measurement aligns campaigns with strategic and financial goals.
• Real-Time Optimization: Mid-campaign adjustments boost performance in dynamic markets.
• Transparency and Trust: Clear metrics build confidence, encouraging deeper brand-retailer collaboration.

Funding and Revenue Streams

The survey revealed significant investment trends:

• Nearly 50% of RMN budgets come from programmatic allocations, with 45% drawn from performance media.
• Revenue Breakdown: In-store placements and retailer-owned properties each contribute 32%, while off-site channels, such as extended search, account for 36%.

Opportunities and Hurdles

Despite rapid growth, RMNs face challenges. The lack of standardization and interoperability complicates adoption, with nearly 70% of respondents identifying unified measurement as a priority for unlocking RMNs’ full potential. Encouragingly, international efforts in the U.S. and EU are making strides toward solutions.

Looking Ahead

Innovation and collaboration will shape RMNs’ future. AI is already transforming retail media, enabling personalized shopping experiences, interactive displays, and immersive technologies like AR and VR. These advancements promise to blend digital precision with physical retail engagement, redefining how brands connect with shoppers.

A Collaborative Vision

RCC and IAB Canada are committed to bridging gaps and driving collaboration between retailers and advertisers. By championing global standardization, advancing skills development, and sharing resources, we aim to make RMNs a win-win for all stakeholders. Our combined efforts will help maximize RMNs’ potential as tools for growth, innovation, and stronger partnerships.

As RMNs continue to evolve, they are not only enhancing revenue streams and advertising strategies but also redefining the future of retail. This powerful channel marks a new era of opportunity for retailers, brands, and consumers alike.