Why the rise of retail media requires a rethink of marketing structures

Digital commerce and retail media are collapsing the traditional marketing funnel and driving a hybrid approach to sales and marketing that requires brands to improve their organizational readiness.

That’s according to a new WARC Digital Commerce report: How retail media is disrupting marketing structures.

Why it matters

Retail media is effectively the “third wave” of digital marketing. Like the waves that preceded it (social media and search), retail media is driving a wave of organizational change. This is largely the result of the impact it has had on the marketing models traditionally embraced by CPGs.

Takeaways 

• The creation of a Center of Excellence is a proven way to unify teams, particularly in sales and marketing, by driving operational efficiencies, the standardization of full-funnel metrics, and the adoption of best practices needed to win in an omnichannel world.
• Make sure accountability and responsibility are clearly assigned; the goal of the Center of Excellence should ultimately be to eliminate the company’s need for one.
• Success in e-commerce, and with retail media networks in particular, requires tight alignment across all departments, especially sales and marketing; avoid sub-optimization with the adoption of unified metrics deployed across the full funnel.
• An understanding of how e-commerce works needs to be institutionalized and made accessible throughout the organization.

Key quote

“Amazon made it clear that CPGs need to get on board. It forced CPGs to prioritize and strategize and justify the investment. Retail media is now the no. 4 in terms of digital media investment, and likely will surpass TV to take the third spot within a few years” – Mert Damlapinar, Principal, CPG Business Consulting, EPAM Continuum.