Retail media is the practice of publishing third-party advertisements on branded retail sites, as pioneered by Amazon Ads. To date, U.S. merchants have dominated retail media, capturing over half of global retail media ad spend, according to a new survey and report from the Boston Consulting Group, a global advisory firm.
The BCG survey focused on retail media outside the U.S., querying 100 retailers and advertiser-brands across Europe, Africa, the Middle East, and South America.
Per the survey, brands that advertised on retail sites in those regions have achieved a higher return on investment than on other marketing channels, mainly due to better targeting from retailers’ first-party data.
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Surveyed retailers cited two primary benefits of publishing ads: expanding revenue and enhancing partnerships with suppliers and brands.
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Most retailers offer basic targeting, but brand advertisers seek more advanced capabilities.