Dan Larden of ISBA says none of about ten large FMCG companies he spoke with had a standard definition of retail media, even though their accounts refer to it.
Jon Mundy argues retail media is largely a bricks-and-mortar phenomenon because 84% of transactions happen in stores, not online.
Dan Larden says the most advanced brands, such as Unilever and Procter & Gamble, have spent three years reorganizing shopper, ecommerce, trade and media teams around consistent messaging.
Why retail media's real growth lies inside physical stores
Digital out-of-home is a central part of retail media. If retail media means buying media with retailer data, and most purchases still happen in stores, then screens near and inside shops are retail media. Closed-loop measurement is pushing brands to restructure and buy more directly, which programmatic out-of-home is positioned to capture.
Takeaways
Retail media is mostly a bricks-and-mortar business. Jon Mundy notes 84% of transactions happen in stores and defines retail media as any media buying influenced by retailer data. JCDecaux runs about 500 D6 units at major Tesco branches, optimized with Dunhumby data, and Boots is its biggest programmatic retail buyer this year.
Closed-loop measurement is driving the boom. Dan Larden says FMCG brands now have closed-loop attribution for the first time. Retailer data businesses such as Dunhumby and Nectar run search campaigns for brands, and a slice of retail media is moving off-site through DSPs, including in-store screens bought programmatically.
The biggest brands still lack a definition. Of roughly ten of the largest FMCG companies Dan spoke to, none had a standard definition of retail media, even though their accounts refer to it. ISBA has issued largely digital standards, which IAB Europe has adopted as a step toward a global framework.
Leading advertisers are restructuring around retail media. Unilever and Procter & Gamble have spent three years merging shopper, ecommerce, trade and media teams. Every brand conversation ISBA has concerns this restructuring. Dan argues retail media is ultimately about consistent messaging to the consumer, more than channel or data.
Retailers and brands are starting to act like agencies. Arla built in-house buying, out-of-home and creative teams and now serves other food brands. John Lewis buys JCDecaux media for brands such as Samsung. Out-of-home stays agency-led, but Jon expects programmatic to bring more direct brand spending.
Agencies must treat retailers as media owners. Shopper teams have bought in-store promotions since the 1970s and hold global deals with Walmart and Tesco. Every major agency group now has a head of retail, and Publicis works with Carrefour in France.
Media and creative are reuniting as a priority. About 80% of roughly 150 brands ISBA surveyed rated bringing media and creative back together a high priority. JCDecaux's state of the nation report found many discuss dynamic creative but few use it. Jon predicts 2025 will be the year of data.
Two retail worlds and what comes next
Dan sees a premium retail media ecosystem forming for big brands alongside a fast direct-to-consumer challenger world.
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On this episode 2
Show 1
Challengers can launch with only a credit card on TikTok Shop or Google Ads, and Amazon facilitates about 80% of that growth.
Dan links challenger pressure to Unilever losing 30% of its workforce.
Over the next decade brands will need to combine out-of-home and broadcast with retail and data.
Jon argues the high street survived its predicted death, citing heavy foot traffic at Westfield and Bluewater.