Comment: Retail Technology Show 2024 and IAB Europe standards signal a maturing retail media market

Dan Sands, EMEA Sales Director at retail media platform Zitcha analyses the major trends from Retail Technology Show 2024, which took place in London last month.

It wasn’t just the champagne bar that was bigger and better at this year’s Retail Technology Show (RTS).

The debate and discussion over truly remarkable innovations drew over 12,500 retail hungry minds to Olympia, where we witnessed further evidence of retail, and in particular retail media, maturing in the UK and Europe. 

The first day featured an in-store retail media dedicated pre-event, hosted by Scala at the Novotel Hammersmith.

It was packed with retail media networks (RMNs), before all converged for two days of discovering the next wave of retail evolution from 120+ industry leaders including Harrods, Primark, adidas and more.

Among the prominent themes, on that first day and throughout, was the transformative potential of retail media networks. It’s a topic which is never far from the lips, or stage, at any retail event, as the industry’s attention turns to strategy for growth, planning and customer engagement.

McKinsey talked about how retail media is projected to grow 3-5 x faster than digital advertising through 2026, with grocery retail CEOs listing it in their top five opportunities for the year ahead. 

In-store experience will never go out of style

The discussions at  RTS 24 illustrated that the in-store experience continues to undergo a dramatic transformation.

We already heard at ShopTalk in March how in-store digital innovations are changing the landscape with retailers increasingly employing advanced retail technologies that go beyond traditional displays to create interactive and engaging experiences.

One CMO I spoke with at the event went further. They believe that ‘digital in-store could become the new TV for marketers to gain reach’. 

These in-store innovations are essential not just for enhancing customer engagement but also for integrating the physical and digital shopping experiences in a way that is seamless and impactful; whether through innovative digital shelves, price points, integrated screens or even the trusted wobbler. 

Think holistically 

Brands are also looking at RMN's that can deliver against channel agnostic objectives.

Ana Guerra, Retail Media & eCommerce Marketing Manager for EU, Colgate-Palmolive, talked about how: “We start with an objective, then we work with partners to decide on the best channels to execute against to meet that objective”.

Consumers don’t think or act in silos, so neither should your planning. RTS highlighted the importance of the seamless integration of onsite, offsite, and in-store activities. 

This coupled with effective measurement (as listed below) and creative strategies which play to your audience remain crucial for the success of retail media networks in today's dynamic media landscape.

The integration of all three, onsite, offsite, and in-store media activities, is no longer a luxury but a necessity. Retail media platforms can support retailers with the tools to create seamless and engaging customer journeys.

RTS24 featured many innovative digital solutions (e.g. digital shelves and integrated screens) - highlighting the value for these technologies to not only capture attention, but also gather critical first-party data.

This can then feed back into the retail media network, enabling more personalised marketing and improved sales strategies.

Media, is not retail 

For retailers to harness the potential of retail media, they must truly adopt the mindset of a media company.

A number of speakers touched on the demands required, which typically fall outside of retailers’ focus.

Every consumer interaction must be considered an opportunity to deliver value, which is how media companies view the world, ensuring relevant content is always appropriately curated for its audiences. 

One retailer talked about starting to measure the ‘competitor halo effect’ where a customer sees an ad on X’s Retail Media Network, but then purchases in Y’s Superstore.

Retailers need to rethink and focus on the customer journey. It’s a process. And it’s rethinking as a media owner, and that media will have impact beyond their own stores. Being able to prove that impact increases the perceived value of their media.

By embracing this mindset, retailers can unlock new revenue streams and strengthen partnerships through targeted advertising and branded content.

Retail media platforms can provide the data insights, tools and analytics necessary for retailers to navigate the media landscape effectively. So ensure you choose your partners with the outcome of what you’re looking for in mind. 

Closing the loop

RMNs need to make it easy to compare wider digital activity with retail media activity, to unlock the big brand budgets. Incrementality is often cited as the golden metric for retail media performance, e.g. consumer product goods (CPG) brands using in-store Retail Media Networks to drive sales.

Those who are able to demonstrate incremental sales understand it's a compelling case for brands, and it’s as close to a silver bullet as we’re likely to find in the near future. 

Which is why last week's IAB Europe release of its final European RM Measurement Standards was so well timed. Comparisons with measurement within retail media are improving, but we’re not there yet. 

Leveraging first-party data for competitive advantage

In a landscape increasingly dominated by concerns over privacy, data security and an impending third-party cookie depreciation, the value of first-party data is only going to increase.

Retailers that effectively capture and utilise this data can better understand their customers, tailor experiences, and ultimately drive greater loyalty and sales.

Retail media platforms were highlighted as a way for retailers to leverage this data not just to meet but exceed customer expectations, again turning every interaction into an opportunity for engagement and conversion.

The next evolution

RTS 24 started the discussions around the future of retail, and in particular, the tech supporting its next evolution. As retailers continue to navigate the complexities of a digital first market, the trends and signs of maturity in the market, indicate the way things are headed.

For retailers ready to think like media companies and embrace the integrated tools and strategies for growth and better planning, the opportunities are there to transform potential into performance.

The key to success is the ability to adapt and innovate, using technology not just to sell products but to create experiences that customers value and remember.