BCG: Retail Media Networks Must Elevate Services to Attract Brands
BCG's latest report argues that retail media networks (RMNs) need to enhance media excellence and share more customer insights to secure continued brand investment.
Boston Consulting Group (BCG) has released a report urging retail media networks (RMNs) to advance their capabilities to the 'Retail Media 3.0' level to continue attracting brand marketing budgets. The study highlights that brands expect RMNs to deliver media quality on par with major advertising platforms.
Furthermore, brands are seeking deeper partnerships and access to first-party data collected by retailers. This data is crucial for brands to gain better consumer understanding and drive joint sales growth. BCG's research, based on interviews with over 100 brand and agency marketers, indicates a demand for comprehensive, full-funnel reporting from RMNs.
Brands also desire more in-store retail media products that can create integrated omnichannel customer experiences. Currently, many RMNs focus on either media quality or data-driven partnerships. BCG suggests that to succeed and attract further brand investment, networks must offer both.
The report emphasizes that data sharing is particularly critical, especially as the deprecation of third-party cookies makes data collection and utilization more challenging. BCG positions retail media as an evolving strategic marketing tool with significant potential for consumer reach and engagement, but achieving this potential necessitates substantial improvements from RMNs.