“[We have] an incredible opportunity just to think differently about how we connect and drive a really meaningful customer experience … The retail media industry is going to continue to grow because we’re doing things to solve customer problems [and] drive media accountability.”

— Cara Pratt, Senior Vice President, Kroger Precision Marketing

While investment in digital retail media is in its early days, it’s growing rapidly. Not only that, but retailers that have invested in it — like Kroger Precision Marketing — are already seeing significant results.

As a pioneer in the retail media space, Cara Pratt, senior vice president at Kroger Precision Marketing, joined a recent episode of the “Unpacking the Digital Shelf” podcast, “Driving Accountability, Transparency, and Results in Retail Media,” to discuss how retail marketing is becoming one of the driving forces of the retail industry and its impact on the future of ecommerce.

Why Retail Media Is Becoming One of the Driving Forces of the Retail Industry Retail media is the “third big wave” of digital advertising, according to Insider Intelligence. It follows the waves of search and social, and it’s poised to make just as much of an impact.

U.S. retail media ad spend has grown drastically in the last couple of years — it saw a 53.4% growth in 2021, says Insider Intelligence.

According to Pratt, there are three primary reasons why this is the case:

1. A Renewed Focus on Shopper Behavior

Pratt explains that consumers’ purchase journeys are fundamentally different today because the internet shortens the time from when a consumer becomes aware of a product to when they buy it.

“Because of the opportunity to connect with customers at any point in time so quickly, this journey … is turning into a sprint,” Pratt says.

By appearing in the right places, “retail media can shorten the gap between inspiration and purchase,” she adds.

This retail trend creates exciting new “shoppable moments” for brands, prompting them to take a fresh look at how retail technology can best support modern shopping behaviors.

2. A Push for Accountability

Brands want to see a return on investment for every dollar spent — and they’re looking for a higher level of accountability from their investments.

Retail media, with its close connection to the point of sale, has the potential to deliver this level of accountability.

3. A Desire To Grow Consumer Trust

Consumer trust is eroding. In a PwC study, 76% of consumers called sharing their personal information with companies “a necessary evil,” while 36% were less comfortable sharing their data than they were a year prior.

This weakening of trust is reflected by new approaches to consumer privacy — and heralds a future where sharing consumer data will become more difficult for organizations.

In this environment, the first-party data retailers use to power retail media algorithms becomes much more important. It gives brands the opportunity to give consumers relevant experiences without obtaining consumer data from a third party.

Click here to read the full Digital Shelf article.