Seventy-three percent of advertisers expect to spend more on retail media networks (RMNs) in the upcoming year, according to a report from consulting firm McKinsey. Spending on retail media varies significantly across categories, with beauty anticipated to experience the highest spending uptick of 90%. In total, beauty, specialty and apparel and footwear, general retail, CPG and household, and CPG and grocery will see a 73% increase in spending overall.
This is all happening against the backdrop of universal spending cuts, as businesses attempt to reduce costs in many areas of the business. Despite potential recession, retailers are still investing heavily in retail media, as RMNs offer the most potential to provide insight on the customer journey and shopper demographics.
RMNs are expected to make up 10-15% of media spend.