Ad agencies are advising clients to be cautious with retail media spending due to rising CPMs, the increasing number of retail media networks, and a lack of measurement standardization.
One unnamed agency executive highlighted that 'continuing to invest in sponsored products does not always translate to incremental sales.' This raises questions about the efficacy of advertising dollars spent on RMNs.
The complexity of measuring the effectiveness of retail media is a significant barrier to investment. Industry bodies like the Interactive Advertising Bureau are advocating for standardization to help brands understand their ROI.
Despite skepticism about the return on investment, retail media spending is expected to grow significantly, with forecasts suggesting it will make up $25% of everyone's advertising budget by 2028.
Collection
[
|
...
]