From racing through the aisles of wholesalers to navigating the retail media landscape in my career, retail media is not a new world to me. Growing up, my weekends were spent with my dad—a consultant for wholesale clubs—visiting stores and gaining hands-on experience. This early exposure laid the foundation for my career, where I’ve developed retail media practices on both sides of the industry, buying and selling. Now, as the SVP and Global Head of Retail Media at VaynerMedia, I’m excited to leverage that background to shape the future of this dynamic space.
This week, we hosted our first live event, ‘The State of Retail Media,’ where I was joined by Jon Morgenstern, our EVP and Head of Investment; Zubin Mowlavi, Head of VaynerCommerce; and Molly Anderson, our VP of Media. Together, we explored the key opportunities, challenges, and strategies in the retail media space that every marketer should know.
Missed the event? Don’t worry—I got you.
Aisle One: The Rise of Retail Media
First off, let’s talk about the incredible growth of retail media. We’re witnessing the emergence of over 200 retail media networks (RMNs) worldwide! Retailers are tapping into their own data and properties, monetizing them in ways that echo trends we’ve seen in the marketing and publishing landscape for decades. At VaynerMedia, we’ve been at the forefront of this evolution, helping brands embrace retail media strategies from the start. We believe that platforms equipped with robust data sets and advanced AI models can create a competitive advantage. I firmly believe retail media can and should serve as an insights engine for your broader business.
Aisle Two: Integration of Social and Retail Media
A recurring theme during our discussions was the critical need to integrate retail media with social strategies. It’s no longer just about traditional advertising; it’s about maximizing consumer insights and getting creative. We shared some fantastic case studies, like Walgreens’ peelable mango gummies and Chili’s TikTok campaigns, showcasing how social-driven efforts can significantly impact retail sales. The energy around these examples underscored the potential for synergy between these two realms. Use social media to identify cultural trends, then leverage retail media to validate them against actual sales.
Aisle Three: Live Shopping and Commerce Trends
We can’t ignore the impact of live shopping. Platforms like TikTok Shop are changing the game with impressive conversion rates—up to 9% (including Live Selling), significantly higher than the DTC average of around 4% for top-performing brands. Brands that have adopted live shopping report a staggering 20X increase in content view duration, keeping users engaged with their content longer. For a while, the narrative has been that consumer adoption for live shopping isn’t at the level of APAC and that it will take off WHEN consumer adoption picks up. Yet, 62% of TikTok users watch at least one live selling event daily. This isn’t just a trend; it’s reshaping how we think about consumer engagement and real-time purchasing. It’s exciting to see how quickly this space is evolving!
Aisle Four: Moving Beyond Sponsored Product Dependency
Eye level is buy level, so it’s no surprise we continue to see significant increases in sponsored product spend across the industry. This is an area I’m particularly passionate about, as many brands currently rely too heavily on sponsored product ads. While this strategy has its merits, I believe there’s a better way. We advocate for a more holistic approach that focuses on insights-driven creative. It’s all about testing and optimizing your content through quick feedback loops, ensuring long-term success in retail media. This shift can help brands stand out in a crowded marketplace. Start by integrating retail and brand more cohesively in a DSP like The Trade Desk or pulling path-to-conversion data to examine optimal routes through AMC.
Aisle Five: Preparing for the Holidays with Empathy
As we gear up for the holiday season, early preparation is key. We emphasized the importance of retail readiness and optimizing deals for major shopping days like Prime Day and Black Friday. It’s also essential to tailor your content for the holidays—think festive visuals and messaging that resonate with consumers during this special time.
Aisle Six: Insights and Hacks
- Data-Driven Strategies: Retail media offers a treasure trove of first-party data that we can leverage for precise audience targeting. Don’t overlook this valuable resource!
- Integration of Brand and Retail: Treat retail media as part of your broader branding strategy. Integrating retail investments with national and social campaigns creates a cohesive approach that drives real results.
- Empathy in Holiday Campaigns: As we navigate the holiday season, let’s prioritize empathy. Using retail media to test creative elements early will set brands up for success on those big shopping days.
Retail media is on the rise and becoming a key focus in marketing conversations, especially for brands that rely on retailers or marketplaces to sell their products. In our first session, we explored vital strategies for testing, leveraging retail media as an insights engine, and keeping our brands relevant in today’s digital-first world—insights that every marketer can benefit from.
This is just the start, as shifts in the social, retail, and commerce landscape will continue to shape our industry. It’s an exciting time to experiment; the ability to identify what works is improving faster than ever with all that retail media has to offer. Thank you for tuning in, and I look forward to seeing what’s next for all of us in this evolving landscape!
