Why Shoppable Media Is The Next Evolution Of Retail Media
This is the first in a series of excerpts from a conversation I had with Evan Shapiro, Randy Bapst, and Dalaney Thompson from AiBUY. In this discussion, we explore the future of retail media, the rise of shoppable content in various video formats—including digital video and streaming TV—and the potential impact on programmers, publishers, influencers, and brands.
SPECIAL OFFER:
Each video in the series contains a link that both demonstrates AiBUY’s shoppable overlay technology and gives you a way to download their white paper From GOING Shopping to ALWAYS Shopping. AiBUY's Report On E-Commerce Now. When you watch the video, an icon will appear in the scrubber bar. Click on it and you will be taken to the free download page.
Retail Media Unpacked: The Billion-Dollar Advertising Revolution
ALAN WOLK: Evan, let's start with retail media. We hear this term a lot, but not everyone understands what it is. Could you provide a 101-level explanation?
EVAN SHAPIRO: Sure. Retail media is actually the fastest-growing segment of the advertising economy. Three-quarters of brands and their agencies now create bespoke retail media budgets, separate from the usual impression-based ones. This has increased 3x in just three years. Looking at the entire market, retail media might reach about 40 billion, maybe even more, this year. Amazon dominates this space, but last year Walmart also sold 2.2 billion dollars in retail media advertising and Instacart is also on track to hit close to a billion dollars in retail media advertising this year. One of the main advantages of retail media is the shorter distance between the first impression and the first transaction. The way you track spending and its effectiveness is different in the retail media environment compared to traditional media. As retail media evolves, it's becoming a number of different things. It's not just about things like virtual end caps on Amazon.
ALAN WOLK: What exactly is a virtual end cap?
EVAN SHAPIRO: In traditional retail, you'd see end caps and shelf hangers in stores like Walmart or Target. In the online environment of Amazon, with its tailored user experience, these have evolved into what I call "virtual end caps" or "virtual shelf hangers.” But retail media is evolving into much more than that. I think there are many new facets to retail media that defy traditional explanations and definitions of the medium and frankly the folks at AiBUY are a great example of how retail media is going to invade other parts of the entire media ecosystem.
The Evolution of Consumer Behavior and Technology
ALAN WOLK: It's always about being in the "right place at the right time." None of this existed before. Apart from advertisers providing us with a list beforehand, there was no way to accomplish it.
EVAN SHAPIRO: Consumer behavior is also significant. We've observed consumers doing this even without these tools. Now, with these tools available, we are able to remove the friction and make the process more seamless and cohesive for both the publisher and the advertiser.
RANDY BAPST: And let's not forget the smartphone. Everyone transitioned from a Blackberry, which was primarily about its functionality, to the current smartphones. Their technology has evolved to a point where all of this is now truly possible.
EVAN SHAPIRO: You just made me miss my Blackberry.
DALANEY THOMPSON: Innovations are indeed taking place. Consumer behavior is most definitely a driving force, and brands, as well as companies, need to realign their advertising approach to adopt a retail media perspective.
EVAN SHAPIRO: I believe that's precisely what you all are doing. Instead of trying to impose a new behavior on consumers, you're leveraging existing consumer behavior and developing technology to address that need.
DALANEY THOMPSON: That's correct.
ALAN WOLK: It's not about introducing a new form of media. Many people mistakenly believe that retail media is a separate entity, not something that already exists. They view it as a new media form.
RANDY BAPST: It's merely a continual evolution.
EVAN SHAPIRO: Exactly. It's being reinvented.
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