Retail Media Networks and the Call for Standardization

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In a world where first-party data is increasingly valuable, retail media networks (RMNs) continue to grow exponentially in appeal. However, as digital marketers shift budgets and invest more and more in retail media networks, many challenges arise in standardization and measurement across platforms. 

Major networks are at a crossroads as the demand for transparency and comparability between platform advertising metrics grows louder by the day. 

Will they answer the call for standardization or resist and leave advertisers high and dry? 

The Current State of Retail Media Networks

Let’s start from the beginning. 

In its simplest form, retail media networks are advertising platforms that allow marketers to serve product ads near the point of conversion. For example, when a consumer searches for “stain remover” on a retailer website, advertisers within that category or in a similar category can serve their products in the results. 

Retail media networks first emerged in 2012 when Amazon realized the power of serving ads near the point of conversion—particularly in stores with end caps and displays. With these learnings, Amazon brought brick-and-mortar retail media to the digital space, kick-starting an eCommerce revolution.

And now, with the ever-looming loss of third-party cookies, retail media networks continue to come out of the woodwork. With once-accessible third-party data being pulled behind paywalls and reclassified as first-party data, advertisers have no choice but to add yet another platform, publisher, retail media network, etc, to their media mix. 

Today, with 70 retail media networks in North America alone and over 200 worldwide, each platform has its own advertising specs, metrics, and dashboards, making it increasingly difficult for advertisers to realize their investments.

The Need for Standardization

For retailers locked into retail media networks with several vendors (Walmart, Target, Amazon, to name a few), the lack of uniformity in metrics makes it difficult to assess the effectiveness of their investments across platforms. 

For instance, Target Return on Ad Spend (tROAS) might differ significantly between Walmart and Target, hindering digital marketers’ ability to analyze performance and make informed decisions.

In fact, according to a recent IAB (Interactive Advertising Bureau) study, 62% of ad buyers cited the lack of measurement standards as a top challenge to continued growth.

In an ideal world, all retail media networks would adhere to the same standard for measurement. A unified approach to measurement should encompass:

1. Transparency: Retail media networks should provide clear, accessible data on metric calculation and representation.
2. Comparability: Standardized metrics across platforms for benchmarking and cross-comparison.
3. Relevance: Retail media network metrics should align with key business objectives like sales lift and brand awareness.
4. Technological Integration: Networks should invest in advanced tracking and analytics technologies so advertisers can access real-time data and actionable insights.

Benefits of Standardization

While less established networks struggle to catch up, leading retail media networks like Amazon and Walmart might not be willing to bend the knee to standardization and alignment across the industry. 

However, embracing standardized measurement practices brings a myriad of benefits – advertisers and networks alike, each contributing to the efficiency and effectiveness of retail media networks, including:

1. Increased Trust: Standardized metrics instill confidence in retail media network data, fostering credibility, increased investment, and mutually beneficial relationships.
2. Enhanced Optimization: Most digital marketers are born with a testing mindset, but without standardization and transparency, even the most basic test can prove challenging. Armed with clear performance metrics, digital marketers can refine strategies for maximum impact.
3. Greater Returns On Investment (ROI): Improved measurement techniques provide deeper insights, enabling advertisers to allocate resources more effectively and achieve higher returns on investment.

What Can Digital Marketers Do Now?

In an effort to address retail media network discrepancies in the industry, the Interactive Advertising Bureau (IAB) and the Media Rating Council (MRC) published their proposed guidelines in January 2024.

But it may be some time before the retail media network industry slows down enough to get organized. Until then, digital marketers like you are left to your own devices. 

So here are some actionable steps you can take to navigate these challenges in the midst of a piecemeal system:

1. Gather and Integrate Data: Collect as much data as possible from each platform and integrate it cohesively. Thread together disparate sources to view performance and audience behavior comprehensively to create a clearer picture of your campaign performance across platforms.
2. Find Your North Star: Stop wandering aimlessly in the retail media network landscape and find your North Star. Start by defining your key performance metrics and internal objectives so you can focus on initiatives that drive tangible results.
3. Study Each Platform’s Metrics and Audience Definitions: Dive deep into how metrics are defined on each platform and understand the nuances of audience segmentation. Recognize that metrics like tROAS may vary between platforms, necessitating a nuanced approach to analysis and interpretation.
4. Collaborate with Platform Partners: Foster close partnerships with platform providers to stay current on the latest developments and best practices.

Moving Forward

The call to action for creating retail media measurement standards is clear. Industry leaders and advertisers need to collaborate to establish guidelines that will bring consistency and reliability to this burgeoning field. These efforts will enhance the overall market’s efficiency, credibility, and profitability.

As we look to the future, the integration of comprehensive measurement standards in retail media will be a pivotal step in maturing the industry and maximizing its potential for all stakeholders involved. 

In the meantime, we will continue to advocate for standardization until the industry answers the call.

At Adlucent, we are built for complex challenges – including the many nuances of retail media networks. So stay tuned for more retail marketing insights like this, subscribe to our blog, and reach out today.

Let’s prove outperformance has no limit. 

Jen Sayroo

Jen Sayroo is the Senior Account Director at a leading Retail Media Network, with a background spanning over 12 years in the industry. Her extensive experience is focused on leveraging retail media platforms to maximize client success and drive innovative marketing solutions. At the heart of her career is a passion for transformative digital strategies that connect brands with their audiences in meaningful ways. Inspired by the dynamic and ever-evolving nature of retail media. She is a firm believer in the power of data-driven decisions and the importance of synergy between technology and creativity to achieve outstanding results.