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Kroger, Sam’s Club, and Best Buy expand their retail media networks

The opportunity: Several retailers have recently bolstered their US digital retail media networks to capitalize on a rapidly growing channel that we expect will reach $40.81 billion this year. That’s more than triple its pre-pandemic total.

  • Kroger’s retail media business, Kroger Precision Marketing, now enables advertisers to access audience intelligence via sales data, as well as to customize video and connected TV inventory in a centralized marketplace, per Marketing Dive.
  • Sam’s Club partnered with ecommerce advertising solution Pacvue to provide brands access to search and sponsored product ads.
  • Best Buy is expanding its retail media network to run ads on third-party websites.

The challenge: There are a growing number of retailers competing for a finite number of advertising dollars.

  • Even so, retail media networks are incredibly attractive because of the first-party relationships that retailers have with their customers. Those connections are highly valuable as third-party cookies and other data sources shut down.
  • By expanding their offerings, retail media networks can see which products drive shoppers to buy.

The big takeaway: Amazon dominates the retail media network domain, which isn’t surprising given its deep roots in the space and its massive reach as a retailer. Competing with Amazon, as well as the ever-growing number of retail media networks, requires retailers to innovate.

  • For example, Walmart earlier this year added video and in-store ad formats, which enable advertisers to reach consumers in different ways.

Go Further: Read our Retail Media Ad Spending Forecast here.

This article originally appeared in Insider Intelligence's Retail & Ecommerce and Marketing & Advertising Briefings—a daily recap of top stories reshaping the retail and marketing industries. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.