The retail media market is booming; the IAB UK’s Futurescape Barometer predicts it will be worth £8.6 billion by 2030. In the coming years, it promises to reshape how brands advertise - as well as how consumers shop, discover and engage. But in order to realise the growing opportunity retailers and brands must get their strategies right.
Propeller’s panel on the second day of eCommerce Expo & Technology for Marketing - 2030 vision: What will retail media look like in five years time? - offered insights on how the space is evolving and best practice for capitalising. Moderated by our CEO Kieran Kent, the panel featured:
- Olivia McCullagh - Retail Media Lead at IAB UK
- Alex Knapman - Retail Media Lead at Halfords
- Abigail Hammond - Retail Media Advertising Lead at B&Q
- Florian Clemens - Director of Strategy, Proposition & Measurement at Tesco Media
The bigger picture
The session opened with Florian Clemens defining retail media: “Fundamentally, retail media requires you have intent-based audiences, an actionable ad experience and closed loop measurement that proves the advertising actually did something.”
The panel interrogated whether, as has been suggested, retail media could evolve into “all media” by 2030. Alex Knapman said: “It depends on your definition of retail media. If you believe it is in-store or online advertising or media, I think we can get a long way to all media being retail media. However, so much has to happen - for example, there will be multiple media broadcast channels still playing a vital role in five years.”
Abigail Hammond agreed the timelines were ambitious: “I would have agreed with the timelines two years ago - and we’re certainly seeing the right shifts in terms of restructuring and unlocking budgets. Right now, significant work still needs to be done from an education standpoint - and tech partners need to understand that their off-the-shelf solutions won’t automatically translate to new verticals exploring retail media.”
Retail media as a media owner
Discussion then turned to whether retail media networks should act more like media owners, a point prompted by a recent article. Olivia McCullagh said: “At IAB, our stance is that we should accept these networks as they are - rich first-party data platforms that are all about customer experience. That’s what really differentiates a Tesco or Asda from the likes of ITV; the customer is at the heart of everything they do, channeled through each experience.”
Florian expanded with Tesco Media’s approach: “Retail media builds on the strength of the retailer. 24 million households have a Clubcard, which gives us a really good data foundation to create audience segments and engage with them in a relevant and inspiring way.”
For retailers with less frequent shopping trips, the challenges are a little different, as Abigail explained: “Even our most loyal customers may only shop with us once a year. That’s why we’re not rushing to plug our consumer data into our channels. Instead, we’re ensuring that we use it in the right way - to add value for our customers. With most of our sales taking place in-store, we’ve opted to experiment with digital screens in our bricks and mortar stores.”
Alex added that the customer experience (CX) had to be balanced with the levers pulled to drive revenue, such as algorithms prioritising sponsored products - but also noted: “CX still matters though - irrelevant ads help no one. No clicks, no conversions means no value for advertiser, retailer or consumer. The key is creating a flywheel: revenue supports better propositions, which then benefit everyone.”
Global comparisons
Asked how the UK’s retail media landscape stacks up against other markets, Olivia highlighted some stark differences. “Europe operates similarly to us, but the UK has an in-store advantage. Last year in the US, Amazon grew approximately 25% and Walmart 24%, while the UK is forecast to grow 17% year-on-year.
“US players grew from outside-in, while the UK started with bricks and mortar strength. With the rise of digital screens and innovations like scan-as-you-shop, the UK feels more advanced in making in-store experiences relevant.”
The challenges of collaboration
The retail media ecosystem spans tech vendors, partners and agencies. In terms of best in class collaboration, Alex identified internal alignment as crucial. “Building a retail media network is one of the most cross-functional efforts in retail. Internally, you’re dealing with finance, CX, eCommerce, buying, marketing - the list goes on. Externally, a mature network might work with 10+ tech vendors.
“But the hardest part is internal - being the champion for retail media within the business. Stakeholder management and aligning KPIs are critical. If retail media isn’t on someone’s scorecard, it’s a challenge. Even the most mature networks are still evolving, asking how far retail media can go and what balance to strike.”
Closing remarks
Asked to close on which retail media innovation excited them the most. Olivia pointed to the blurring lines between shopping and entertainment: “Look at how users are discovering new products on TikTok Shop. Similarly, on Amazon Live, consumers are buying on video. The question is - how do you connect the whole ecosystem?”
For Alex, it was the value of unlocking retailer data and AI’s role: “It’s scalable beyond on-site inventory - and off-site will also be a major growth area. And of course, AI. It will speed up everything from A/B testing to in-flight optimisation.”
Abigail emphasised the importance of personalisation: “Contextual targeting will always have its place, but as we get richer data, the scope for personalised experiences on and off-site will transform retail media.”
And finally, Florian spoke about how Tesco Media is making loyalty more interactive: “We’re bringing brands into Clubcard CRM messaging, creating a fourth pillar of inventory on top of on-site, in-store and off-site partnerships. For example, brands can now reward loyalty through Clubcard Challenges. Customers can choose which brands they want to engage with. It’s interactive, gamified and gives them more control - that’s the future.”