Retail Media Network Gaps Hold Peril for Brands

by
Retail Media Networks Mind the Gaps

JUST WHEN YOU THOUGHT the retail media conversation couldn’t get any hotter, we hear high-profile executives from the largest Retail Media Networks (RMNs) and their technology suppliers on podiums and podcasts talking up a glorious future for brand advertisers.

RMNs were a recurring theme at last September’s Groceryshop event in Las Vegas and this month’s NRF ’24 Big Show in New York promises no fewer than 24 sessions on “Retail Media” topics. No wonder – the take from retail media sales this year is projected to reach $52 billion in the U.S. market alone, according to Coresight Research.

RMNs are retailer-owned digital and in-store channels which convey messages and offers to shoppers from CPGs and other third-party businesses. They have exploded in popularity over the past few years, due to the added revenue they can attract for retailers and the personalized audiences they can deliver to advertisers.

Right now, big RMNs wield heavy clout when it comes to scooping up those alternative revenues. The most prominent – Kroger Precision Media, Walmart Connect, Albertsons Media Collective, Target Roundel, Dollar General, Instacart – can deliver audiences in the tens of millions or more. These certainly boast wide geographic coverage that is important for brands.

It’s easy to be dazzled by the scale of those audiences and the purported advertising efficiencies and targeting capabilities of their networks. Savvy advertisers must also recognize that sheer, provable reach is only the first piece of the puzzle.

Read more

Expert Stories are for Closers

by
Expert Stories are for Closers

FOLKS KEEP ASKING me whether they can find more leads for my business.

The queries come in spam emails mostly, but also via bombardment of the contact form on my business web site. Several times a day, they promise a never-ending flow of mythical golden leads, which pisses me off.

I already know who my prospects are. I’ve been meeting them at conferences and expos for many years. What I want – what all of us need – are more closes. Expert stories are the key to making this happen.

Why I counsel B2B clients to flip the funnel

Spray and pray

Conventional marketing wisdom tells us that droves of customers are out there just waiting to hear from us. If we inundate the market with enough messages, a percentage of folks will catch on, a few will learn why we’re great, some of those will consider us, and a small fraction will Venmo us some cash.

Read more

BrainTrust LIVE: From NRF 2023

by

This year’s NRF Big Show in New York was a huge event.

Once again, I joined my good friend Ricardo Belmar of Microsoft for a run-down on some of the show’s most important trends. Watch it all here: BrainTrust LIVE NRF 2023

Key NRF Insights

Along the way we tackle:

  • The problem of retail overstocks
  • The surge in Retail Media Networks
  • In-store sensing and electronic shelf labels
  • Omnichannel trends
  • The ubiquity of AI claims at booths and in sessions
  • The atmosphere and “tone” of the event

The NRF organizers said about 35,000 folks attended this year’s Big Show.

NRF Recap

You may find convenient access to the official NRF event recap here.

This was not my first rodeo. Ricardo and I have teamed up at a number of industry events to share our observations. Check out my on-the-floor solo webcast from 2019.

Why are Retailers so Overwhelmed by Overstocks?

by
overstocks

[Image: Designed by vectorjuice / Freepik]

NO SURPRISE, the retail industry is swimming in excess inventory lately. Overstocks leapt forward by double digits in the latest quarter for a dozen of the nation’s largest chains, as they rebound from the supply shortages and out-of-stocks which have vexed them since early 2020.

Today on RetailWire.com, I weighed in on a lively discussion about this problem entitled: “Why are retailers struggling so hard to balance inventory?“ Certainly 20, 30 and 40 percent leaps in stock on hand are partly a sling-shot effect, since retailers over-ordered desperately during the 2020-21 supply disruptions. The situation has been rough on all retailers, but the apparel leaders are taking early and aggressive markdowns on overstocks that arrived too late for missed seasons.

Opinionated as I am about inventory accuracy in retail, I jumped on my high horse with a critique of the global manufacturing and shipping industries. I tossed in a not-too-subtle swipe at Adam Smith’s “Invisible Hand” for good measure.

The implications span both micro- and macroeconomics. Long lead times are too often tolerated in the name of scale economies. Big plays in highly concentrated markets set the stage for massive disruption when things go wrong.

Read more