A retail media boom is fueling the growth of a phalanx of potential challengers to Amazon, according to a new report conducted by technology firm Criteo.

Interviews with 250 brand marketers and 250 decision makers for the Future of Commerce report found that while Amazon is cited by 40% of media agencies as their ’most desirable’ display ads destination, it is closely pursued by Boots (30%), AO (26%), The Very Group (22%) and Asda (18%),

The figures illustrate the importance of retail media knowledge to stay ahead of the pack, with 57% of agencies acknowledging that they fall short in this area. Low technology adoption among e-commerce platforms is cited as a further barrier to entry, highlighting what is at stake for retailers that fail to grasp the full potential of retail media for clients, customers and consumers.

Sam Benkel, the Northern Europe managing director for retail media at Criteo, commented: “Advertising on retail sites is inherently a brand-safe environment with first-party data and strong performance – a combination guaranteed to secure recurrent spend from advertisers. This gives retailers a huge opportunity to scale, reinvest profits in lower prices, update technology and improve marketing to enhance the customer experience.

“Larger advertisers are often early adopters; they certainly have led the way in retail media and will continue to do so. However, as retailers develop smarter predictive algorithms and more personalized experiences, challenger brands with an understanding of auction dynamics and audience targeting can make themselves just as discoverable. Ultimately, it’s this breadth of media on offer that will ensure ads can continue to display natively, prioritizing the user experience.”

The figures come as marketing budgets allotted towards the so called walled garden closed ecosystems operated by the four largest technology firms saw their collective cost per conversion rise by 27%.

More worryingly, 91% of agency respondents expect costs to rise further as inflation takes root over the next 12 months.

This article is about: World, Retail Media, Adtech, E-commerce, Ecommerce, Media, Agency

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