Retail media is on the climb in 2024 and is a critical part of a well-rounded first-party data strategy. While Google spent most of 2023 and 2024 threatening to remove third-party cookies from Chrome, marketers went to work finding alternatives and first-party data jumped ahead as a promising solution. As a direct result, retail media started its meteoric rise.
As digital marketing moves forward, retail media is emerging as an unexpected power player. In particular, loyalty programs and retail media networks (RMNs) are rapidly growing. RMS in particular are rising in popularity as marketers seek to monetize their online platforms.
The boom of retail media networks was predicted in 2023, with the sector expected to reach $125 billion industry by 2023’s end. This estimate turned out to be right on the money. In 2024 advertisers continued to invest in RMNs and the rise of retail media clearly shows a change is in the air.
The question on every marketer’s mind is why? Why now, why retail? The not-so-secret answer is data. Retail media gives marketers access to reliable, timely, relevant first-party data.
First-party data is incredibly important in 2024’s marketing landscape. It lends an advantage in a world where third-party cookies are falling out of favor – giving marketers necessary insight into customer behavior. It lets marketers target customers more effectively and with more accurate measurement and attribution. First-party data does all this while protecting consumer privacy and respecting customer consent.
Retail media is a first-party data boon
While Google has reneged on its promise to eliminate cookies from Chrome, they remain no less popular. Browsers like Firefox and Safari have already limited cookie use on their platforms. With cookies falling out of favor, first-party data is one of the most popular solutions for marketers.
Retail media like loyalty programs require users to opt-in to information sharing and data collection. Because they are given an incentive and because the collection is done transparently, customers are more comfortable with data collected from retail media than from third-party sources.
Retail media programs are a reliable and effective way to gather first-party data. Not only do these programs provide marketers with necessary purchase data, but they are also tremendously popular among customers.
In a survey conducted by Bizrate Insights for eMarkerter, 57% of adults in the US said they have an Amazon Prime membership. In the same survey, 24% of adults said they were Walmart+ members and 23% belonged to Cosco’s Wholesale program.
What is most noteworthy about this survey is that only 21% of US adults said they didn’t belong to any membership program listed by Bizrate Insights. Membership and loyalty programs are incredibly popular. It makes sense, customers who repeatedly shop at a single store only stand to benefit from these programs. In exchange for their purchase data, they receive discounts, faster shipping, and other key incentives.
Retail media is a win-win. It is popular with customers, but even those who aren’t so keen can simply not join. For businesses, the benefits are substantial. Brands gain access to critical first-party data in a world where reliance on third-party cookies is tenuous. If marketers aren’t already on board the retail media bandwagon, it’s not too late to jump on and take advantage of the untapped data potential.
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