LiveIntent retail media market report reveals 63% of marketers rank retail media advertising more effective than other digital channels

Chief of staff, SVP corporate communications and industry relations

First segment of a four-part research project on retail media shows that nearly three-quarters of marketers plan to increase investment in 2023

NEW YORK CITY — May 2, 2023 — LiveIntent, the email based marketing and advertising technology company, today announced the initial findings from a four-part research project on retail media network (RMN) adoption in digital advertising. The report, titled “The 2023 Retail Media Market Report: Unlocking Adoption, Mastering Best Practices, Overcoming Challenges & Driving Performance,” surveyed more than 200 U.S. marketers to examine their experiences and views on the expanding retail media landscape.

Emarketer projects that retail media ad spend in the U.S. will grow by more than one-quarter this year, surpassing $51 billion. By 2024, spending is expected to account for nearly 20% of total digital ad investments as advertisers increasingly turn to retail media for performance and data opportunities, particularly in the face of identity deprecation on the open web.

Considering this, LiveIntent’s four-part research project surveyed more than 200 marketers on four key aspects: 1) retail media adoption and performance; 2) potential value of retail media networks; 3) first-party data and retail media; and 4) the opportunity to utilize logged-in media channels, such as social media networks and email, to enhance retail media value.

For Part One, which concentrates on retail media adoption and performance, key insights from LiveIntent’s research include:

RMN Adoption 

  • Everyone has at least “heard” of Retail Media: When asked about their familiarity with retail media networks, 60% have a general understanding of RMNs, while 40% have a detailed understanding. No respondents reported being unaware of them.
  • Growth is inevitable in the short term: Regarding RMNs’ usage change in the upcoming 12 months, the largest portion (84%) anticipate increased adoption, followed by 13% expecting it to remain unchanged, and a mere 2% predicting a slight decrease.
  • Growth is a fait accompli in the long term:The survey also explored how respondents envisioned retail media networks’ usage changing in the next five years. Almost all (90%) believe usage would increase as more brands and retailers adopt them, while 7% thought it would decrease and 4% expect it to remain the same.
  • Retail media is good for advertisers: Regarding RMNs’ future impact on the ad industry, 88% predict a positive effect through new opportunities for brands to reach customers. However, 4% foresee a negative impact due to increased ad space competition, and 8% remain uncertain.

RMN Investment 

  • Most advertisers have already tinkered with retail media, to little avail: The majority (43%) said they had invested in RMNs in the past and found it successful, whereas 40% hadn’t but are interested in exploring the option. Conversely, 12% had invested without success, and 6% hadn’t and have no interest in future investments.
  • Even in the early days, advertisers want more retail media; An overwhelming majority (92%) would consider investing in retail media advertising in the future, with 42% definitively committing and 50% leaning towards it. Only 6% lean against investing, and 1% definitively oppose it.
  • Advertisers will increase spend in retail media this year: When asked about their investment plans in retail media networks in the next 12 months, specifically, compared to the previous year, nearly three-quarters (73%) intend to invest more, while 19% plan to maintain their investment level. Conversely, 8% aim to invest less.

RMN Performance

  • The majority believe retail media is more impactful inventory:  About two-thirds (63%) believe retail media advertising was more effective than other forms of digital advertising, with 22% considering it equivalent. Meanwhile, 7% deem it less effective, and 8% were unsure.
  • Most have seen better performance in retail media: In terms of increased sales or customer engagement due to retail media advertising, more than half (54%) saw significant improvement, while 20% reported a non-significant increase. On the other hand, 22% saw no increase but felt it had a positive impact, and 4% saw no change and doubted any impact.

“Retail media is booming because retailers have first-party email data, logged-in users on web and app and offer closed-loop measurement. What’s missing is better measurement including incrementality,” said Mike Pisula, VP of Product Development at LiveIntent. “Advertisers want to spend more on Retail Media Networks, they are just waiting for the offerings to catch up with their needs.”

About LiveIntent:

LiveIntent, one of the world’s largest people-based marketing platforms, connects 2,500 publishing and advertising brands with over 240MM verified people every month across all types of media. With the anonymized email address at the center of its industry-leading identity graph, LiveIntent provides brands with solutions that help them monetize, acquire, and retain real people, even where cookies don’t work. LiveIntent enriches a brand’s data, making it possible for them to deepen their understanding of their audiences, and more effectively market to people wherever they are present and paying attention. LiveIntent is home to over 200 people worldwide with offices in New York, Berlin, and Copenhagen.