Retail media network are the channels that are used by retailers for advertisement of their goods or services to the consumer at near or beyond the point of purchase. The techniques, which are used in retail media include online advertising, in-store advertising, loyalty cards, and vouchers. Thus, retail media companies are now targeting audience on the basis of their location, income, and their behavior patterns for selecting their product. Retail media network is increasing rapidly, owing to the rising household income of consumers and e-commerce players in the market. For instance, according to the Coherent Market Insight’s report, Business to Business (B2B) e-commerce market is expected to reach US$ 398.5 billion by 2020 and Business to Consumer (B2C) e-commerce market is expected to reach US$ 103.2 billion by 2020.
Factors driving growth of the retail media network market
The increasing trend of online shopping is the major factor that is expected to drive the market growth over the forecast period. Moreover, increasing technological advancements in mobile devices and adoption of internet of things (IoT) are expected to drive the market growth during the forecast period. Furthermore, with growing penetration of smartphones and internet, e-commerce has become the major platform for consumers to do online shopping from various e-commerce platforms such as Amazon.com, Inc. and Walmart. The market of e-commerce in U.S. has been growing rapidly and is expected to drive the retail media network market growth over the forecast period. For instance, according to Coherent Market Insight’s report, in the U.S., the retail e-commerce sales increased from 274,534 million in 2017 to 419,723 million in 2020. Various shopping apps in mobile devices, emerging payment methods, and shopping on smartphones are some of the factors, which results in easy online shopping and is more convenient to the users. Moreover, as the reach of internet has increased, online retail advertising is becoming the strong communication medium for advertising their competitive brands or products, as compared to the other traditional print media methods.
Moreover, the number of smartphones users are increasing, globally. For instance, according to the Coherent Market Insights, the penetration of smartphone increased worldwide from 2.8 billion in 2018 to 3.8 billion in 2020. Furthermore, through smartphones web-based apps, retail companies not only generate leads, but it also aids in understanding the behavior of the consumers. Thus, retailers are focused on providing web-based advertisement which is expected to drive on the market growth over the forecast period.
Regional analysis of retail media network market
On the basis of region, the market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa.
Among regions, North America is expected to account for the largest market share over the forecast period, owing to the presence of key players in the region such as Walmart, Costco Wholesale Corporation, and The Kroger Co. Most of the companies deliver products at the doorsteps, by making it convenient to the end users. For instance, in March 2018, Walmart expanded its online grocery pick up service to over 100 metro areas in the U.S. In this service customers can order their grocery products online and company will deliver product at their doorsteps. For instance, according to Coherent Market Insights report, in 2018, there were 152 thousand convenience stores and 49 thousand supermarket stores in the U.S. This, in turn, is expected to drive market growth of the retail media network over the forecast period.
Moreover, Asia Pacific is expected to witness significant growth over the forecast period, owing to the rising disposable income, increasing adoption of smartphones, and various government initiatives for the development of retail industry. For instance, in China, according to the National Bureau of Statistics (NBS) rural and urban per capita disposable income reached US$ 5,658.45 from US$ 2,107.2 in 2018. Furthermore, Government of India has announced reforms to foreign direct investment (FDI) in the retail media industry. For instance, in 2019, the India government approved 51% FDI in multi brand retail and 100% in single brand retail, which is expected to boost growth of the e-commerce market in India. Moreover, increasing population in India is expected to boost the retail media network market growth in India. For instance, according to the India Brand Equity Foundation (IBEF), in 2019, the retail market in India is expected to grow from US$ 13.51 billion in 2016 to US$ 26.67 billion in 2019.
Key players in the retail media network market
Key players operating in the retail media network market include Walmart, Costco Wholesale Corporation, The Kroger Co., Walgreens Boots Alliance, Inc., TESCO PLC, Amazon.com, Inc., METRO, Home Depot Product Authority, LLC., Target Brands, Inc., Best Buy, Inter IKEA Systems B.V, Carrefour SA, and eBay Inc.
Segmentation of the retail media network market
Retail media network market is segmented on the basis of type, application, and region.