Insights from Dean Harris, Head of Co-op Media Network
Retail media continues to be a hot topic, capturing attention, influencing boardrooms, and driving budgets. Yet, while most are focused on 'what’s next,' few thought leaders are pausing to reflect on which predictions have proven true, where we’re still falling short, and the unexpected trends that have emerged.
Ahead of his appearance on our next Talking Shop webinar, we sat down with Dean Harris (Co-op) to explore: beyond the hype, how have the 2024 predictions really held up?
2024 predictions: what’s happened so far?
“Predictions for 2024 included the power of retail data unlocking major partnerships, the digitisation of in-store experiences, the reshaping of traditional marketing, and retail & trade teams to capitalise on the retail media boom.
Looking back, the retail data partnership's forecast was spot on.
New collaborations are being announced regularly; there’s been The Trade Desk with Sainsbury’s and Tesco’s alliance with GroupM. Across the U.S, similar patterns unfolded, with Disney+ joining forces with Kroger and Walmart partnering with NBC.
Another trend that’s been building gradually is the digitisation of stores. Earlier in the year, data seemed to take the limelight, while the store transformation was more of a secondary topic.
Now, store digitisation and digital screens are taking the lead, pushing data lower on the news agenda. This might be due to data fatigue or simply because digital screens are becoming a bigger focus, given the vast reach they have in grocery stores.
Other key predictions, like the rise of non-endemic advertisers and AI dominance, have yet to take off. Skepticism around non-endemic opportunities still linger, and AI hasn’t hit the mainstream because there are easier wins out there that don’t require massive new data resources.”
Retail media networks: missing the mark on differentiation?
“At the end of 2023, I originally sided with those who argued that retail media networks (RMNs) would need to differentiate themselves to maintain a leadership position when it comes to brand investment. Interestingly, the rush to meet brand demand has kept RMNs focused on scaling capabilities, with unique propositions taking a back seat. I still believe this could be a potential issue down the road; when demand eventually slows, RMNs that can’t differentiate will struggle.”
Unexpected trends in 2024
“Looking outside of the retail media crystal ball, 2024 has revealed its fair share of surprises. One is the number of new non-grocery media networks, which are giving brands access to niche audiences and more refined targeting opportunities. From banks to gyms and even hardware stores.
AI tool announcements have been sparse, and retailers continue to grow without heavily relying on it. We haven’t yet hit a wall where lacking it makes a retailer uncompetitive, or it’s leading to higher operational costs as they scale. But, when that limit hits, it will become essential.
Simpler opportunities that don’t need new data or partnerships are emerging. For instance, Walmart in the US has a non-endemic sales team linked to in-store digital screens and programmatic ads, while the UK remains more cautious in embracing these changes.
The biggest shock? Google turning back on the cookie. Despite the u-turn, brands have already pivoted their strategies towards alternatives, including retail media’s focused data, and invested heavily in moving away from third-party cookies.”
How Co-op Media Network is responding
“Co-op isn’t afraid to point to the elephant in the room.
Our loyalty data scale is smaller than that of supermarkets. But we are the leaders in convenience loyalty and consider ourselves additive, not competitive.
Big box and convenience retailers are fundamentally different, with everything from store format to varied shopper missions. Meaning there’s a need for both in a well-rounded media plan.
Earlier this year, we proved this with our "halo analysis," first-of-its-kind research with Circana that showed when a brand’s retail media is experienced in a Co-op store; it can boost sales in surrounding grocery stores up to four times the amount of immediate sales.
We’ve switched from being a retailer selling inventory to becoming a media owner pulling in demand, and that’s a big shift. As a retailer, we want customers to buy a brand’s product from a Co-op store, but as a media owner, we want our media to drive brand sales anywhere. The difference between push and pull strategies is significant.”
Co-creation for success
“One of Co-op’s standout initiatives is our co-creation programme, where brands aligned with Co-op’s values can pitch for ‘money can’t buy’ media opportunities. Brands leveraging Co-op’s membership programme and convenience-driven insights are seeing results they can’t get anywhere else. When brands integrate Co-op’s diverse elements – stores, membership, convenience – the results speak for themselves.”
Predictions for the rest of 2024
“So, what does the rest of 2024 hold? I expect streaming services to play a larger role as they shift from subscription models to ad-supported platforms, connecting more closely with retailers. Platforms like Amazon Prime have started integrating ads, and it’s expected that others, including Netflix, will follow. This will likely divert ad spend from linear TV to retail media, as retailers offer richer targeting data.
AI will be making a bigger impact soon, driving more personalised ad experiences and optimising processes in ways that human analysis simply can’t match. AI-driven media planning could be a game-changer, especially for larger retail media networks that have the resources to invest in this technology.
Finally, retail media will continue reshaping the brand-retailer dynamic. Retailers are now the suppliers, and brands are the clients - this shift will demand more collaboration as both sides navigate this new commercial landscape.”
Talking Shop Webinar on Thursday 26 September at 11am
Dean promises an honest, behind-the-scenes look at what it really takes to launch and run a retail media network. From building teams to making strategic investments, Dean will share valuable lessons from Co-op’s journey. If you want to understand the future of retail media, you won’t want to miss it.
Book your place here: https://www.linkedin.com/events/7228744003133804545/about/
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