Marketers are interested in exploring upper-funnel tactics while continuing to invest in lower-funnel strategies, requiring retail media networks (RMNs) to provide a combination of ad formats for a full-funnel effect. In addition, marketers want access to high-quality data for better targeting and personalization, and look to RMNs for enhanced measurement and optimization techniques.

Here are five charts on what marketers expect from RMNs.

1. Marketers are exploring upper-funnel use cases for retail media

Raising awareness is the No. 1 reason agency professionals worldwide are advising clients to invest in retail media, according to an August 2024 Digiday+ Research survey.

Though retail media has traditionally been a performance marketing channel, brands are starting to use it for upper-funnel purposes like generating awareness and consideration. This shift has been supported by RMNs adding more off-site ad formats across broader channels like connected TV (CTV) and social media.

2. But lower-funnel tactics are still king

A large majority (88%) of US marketers are investing in on-site retail media display, banner, and video ads, according to January 2024 data from the Association of National Advertisers (ANA). Another 83% say they’re investing in on-site search ads, demonstrating the continued importance of lower-funnel/performance marketing tactics.

Nearly 80% of US RMN ad spend will go toward on-site ads next year, per our forecast. However, off-site’s share of total ad spend will grow over the next few years.

3. Proving, optimizing ROI is crucial for continued marketer investment

Advertisers want proof that retail media investments are worth it and provide a higher ROI than other channels, according to a July 2024 survey from Quartile conducted by NewtonX.

RMNs can grow their share of ad dollars by increasing transparency around campaign performance and measurement, focusing on providing advertisers ways to optimize their campaigns for better ROI and upper-funnel impact.

4. Marketers expect quality data from retail media partners

In addition to performance metrics and cost efficiency, audience reach and quality is a top factor in consumer packaged goods (CPG) brands and agencies' decision to continue working with their retail media partners, according to an April 2024 survey from Path to Purchase Institute and Goodway Group.

Having the correct data is the most essential element to personalizing communications, according to 59% of US B2C marketers, according to February 2024 data from Porch Group Media. Marketers also value having the correct contact info and being able to build the right kind of segments.

5. RMNs may consider leveraging AI to improve campaign performance, measurement

Over half (55%) of US agency/marketing decision makers believe AI will help provide greater insights and recommendations for their retail media strategy, according to Quartile’s July 2024 survey conducted by NewtonX. Marketers also believe AI will enable real-time campaign optimization and automate or enhance creative efforts.

RMNs that harness AI to help advertisers optimize campaign performance and measurement may grow their share of ad dollars. However, AI must enhance the advertiser experience, not overcomplicate it or hinder gaining essential insights.

This was originally featured in the Retail Media Weekly newsletter. For more marketing insights, statistics, and trends, subscribe here.