1.
Retail Media
Networks: How the
physical store will
power their next
phase of growth
ANDREW LIPSMAN
Principal Analyst, Retail and eCommerce
Insider Intelligence

2.
Retail Media
Networks
How the Physical Store Will
Power their Next Phase of
Growth
January 16, 2023
Andrew Lipsman
Principal Analyst

3.
Retail media is digital advertising’s third big wave after search
and social–and it’s destined to eventually be the biggest
Retail Media: Digital Advertising’s Third Big Wave
Retail media Social Search
Search: 14 Years
2002-2016
Social: 11 Years
2008-2019
Retail Media: 5 Years
2016-2021
Years from $1B to $30B

4.
Retail media will be a $45 billion market
this year, and will continue growing by $10
billion a year
$13.2
$20.8
$31.1
$37.4
$45.1
$55.3
57.3%
49.3%
20.4% 20.5%
22.9%
0%
10%
20%
30%
40%
50%
60%
70%
$0
$10
$20
$30
$40
$50
$60
2019 2020 2021 2022 2023 2024
Retail media ad spending% Change
US Retail Media Ad Spending
$
Billions

5.
Every retailer is becoming an ad network… but
which ones have what it takes to scale?
Digital Marketplaces / Platforms
Mass Merchandise / Department
Category Specialists
Commerce Intermediaries
Other Commerce Verticals

6.
76.8% 76.5% 77.9% 77.9% 76.8% 75.5%
3.5% 4.8% 5.1% 6.0% 7.0% 8.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2019 2020 2021 2022 2023 2024
Amazon dominates retail media, but next-tier
RMNs are carving out meaningful positions
Source:
US Retail Media Ad Spend Market Share
Every 1% in
market share
= $450
million in
high-margin
revenue

7.
Top retail media networks will be among
2023’s biggest winners in digital advertising
growth
42% 41%
36%
30%
26%
19%
13%
10%
5%
3%
Retail Media Big Tech Streaming The Duopoly
Source:
2023 US Digital Ad Revenue % Growth Forecast
Among Top Platforms

8.
Retail media fills a huge need for
brands
It sits at the intersection of three
massive marketing disruptions
TV
RETAIL
MEDIA
Digital
Ads
In-Store
Trend 1
Ratings in Decline
Trend 3
Digitizati
on of the
Store
Trend 2
Deprecation of
Third-Party
Identifiers
8

9.
Future retail media budgets will pull from
everywhere –
digital, linear TV, and shopper/trade
marketing
Sources:
Net New Dollars Cannibalization
$
Billions

10.
3 ways the physical store
will power the future of
retail media advertising
10

11.
#1 Retail media’s streaming TV advertising
opportunity will be powered by in-store sales
data
$0.51
$0.88
$1.83
$3.19
$4.75
$6.54
72.4%
106.7%
74.7%
48.7%
37.7%
0%
20%
40%
60%
80%
100%
120%
$-
$1
$2
$3
$4
$5
$6
$7
2018 2019 2020 2021 2022 2023
US Retail Media Off-Site Digital Ad
Revenues
Ad Spend % Change
Source:
$
Billions

12.
#2 In-store attribution data will complete
the ROAS picture for brands with ‘the other
85%’ of retail sales
45.5% 44.8% 44.1% 42.1% 41.4% 41.4% 39.3%
35.9% 34.5% 32.4% 32.4%
24.8% 24.1%
Most Important Attributes for Retail Media Networks
% of Brands Indicating “Extremely Important”
Source:

13.
212.6
119.0
73.4 67.9 66.0 62.8
53.0
41.4
34.3
27.7 24.4 22.7
15.9
144.9
78.2
35.1
55.8
22.4
41.0
24.5
14.7
29.2
55.2
41.7
8.1 13.7
In-Store vs. Digital: US Monthly Audience Reach
November 2022
In-Store Digital
#3 In-store retail media will prove that
physical stores are the next major media
channel
Sources:
Millions
of
Unique
Visitors

14.
14
Kristi Argyilan
SVP, Retail Media
Aaron Dunford
Sr. Director, Digital & Marketing