DMEXCO Column: Quo vadis Retail Media?
A DMEXCO Column by Patricia Grundmann, Chairwoman of the Retail Media Circle (RMC) within the German Association for the Digital Economy (BVDW) e. V.
2024: A Year Like a Well-Stocked Toolbox for Retail Media
For my first BVDW column, I can’t resist starting with a DIY analogy from my role at OBI – even though the focus of this retrospective is different. Nevertheless, 2024 reflects exactly that for me: a year like a well-stocked toolbox. At the association level, we have consistently sought out the right tools to further advance Retail Media, the Media genre in which we believe and for which we are passionate. We have tinkered, tweaked and sometimes improvised – not only creating new things, but also gaining valuable experience. Now, at the end of the year, it’s time to take a closer look at our own DIY work: the projects we’ve realized, the ideas that have inspired us, and the successes we’ve celebrated.
While 2023 was still very much about definition and orientation, 2024 was the year of standards. Standards that give Retail Media an incredible boost as a Media genre. Why? Because standards create transparency. They make reports more comparable, give advertisers better options for budget allocation and optimization, and increase efficiency. All of this leads to more trust and credibility – essential building blocks for the acceptance of Retail Media in the market.
The milestones of 2024
Our first major milestone of 2024 came right at the beginning of the year: the establishment of new Retail Media standards. Together with the “Market Transparency and Standards” Lab in the Retail Media Circle (RMC) of the German Association for the Digital Economy (BVDW), we have defined key metrics such as eCPM (effective Cost per Mille) and ROAS (Return on Advertising Spend). These standards form the basis for more transparency and trust in the market and offer advertisers a clear basis for comparability and performance measurement.
Differentiated ROAS levels: what’s behind them?
In the fall, we took a decisive step with the introduction of differentiated ROAS levels. With the three levels – brand, category and product level – we have created a model that not only presents the advertising impact in a granular way, but also optimizes the control of advertising budgets.
- ROAS 1 (brand level):… products of the brand were purchased in relation to the campaign.
- ROAS 2 (category level):… products of the brand were purchased from the category in relation to the campaign.
- ROAS 3 (product level):… the products advertised in the campaign were purchased.
An example: A campaign for a new series of hand drills not only generates sales for the specific product, but also increases sales of accessories such as drill bit sets or other tools from the brand. While ROAS 3 reflects these direct campaign-related sales, ROAS 2 also captures the positive spillover effects on other products in the brand in the respective category, and ROAS 1 on the entire range.
In addition to the ROAS levels, further standard metrics have been established that apply along the entire marketing funnel. These include both classic awareness and conversion metrics as well as detailed consumer behavior data. The latter go beyond pure campaign performance and offer deep insights into consumer purchasing behavior. The new metrics increase the comparability of Retail Media reports, thereby strengthening the credibility of the entire industry. Advertisers can now target their campaigns even more precisely and plan them more efficiently.
Market Landscape for more structure & Market Guide for more orientation
The publication of the first comprehensive Market Landscape for Retail Media followed in spring. This tool provides a clear structure for a dynamic and rapidly growing market. The landscape categorizes the most important players and technologies in the Retail Media ecosystem, helping to provide a better overview of the diverse possibilities. The market landscape is a particularly valuable tool for new market participants looking for orientation.
Another highlight came in the summer: two more groundbreaking tools were introduced in the form of the KPI matrix and the measurement standards. The KPI matrix enables consistent and transparent performance measurement along the entire customer journey. It not only focuses on individual metrics, but also on the connection between data quality, comparability and trust. Advertisers and agencies benefit from a better understanding of the campaign impact and can make informed decisions.
The fall was then dedicated to knowledge transfer: with the new Market Guide, we have created a comprehensive publication that combines all the relevant information on Retail Media. From definitions to best practices and detailed standards, the guide offers valuable insights for both beginners and industry experts. It serves as reference work that facilitates access to Retail Media and can inspire new target groups to engage with the topic.
Inspiration through cases – Retail Media in action
For me and many colleagues in 2024, the numerous Retail Media cases presented at conferences such as d3con, LZ Retail Media Day or DMEXCO were particularly inspiring. These cases are much more than just success stories – they are living proof of what Retail Media can achieve. They inspire, motivate and demonstrate the enormous potential of this Media genre. Therefore, my appeal to the industry: Make some noise in 2025! Show what Retail Media can do and promote what drives us.
2025: The journey continues
Just as with home and garden projects, there will always be new optimization possibilities and opportunities for further development in the area of Retail Media. 2025 will be the year in which we further expand the foundation we laid in 2024. Our mission? To implement the standards we have created in an even more targeted way, to drive innovation and to promote continuous improvement. And it is our stated goal that even more retailers join us in the Retail Media Circle.
The tools we have developed should not only be used, but also further developed to take Retail Media to the next level. Even more transparency, even more efficiency – that remains our goal. I am convinced that together with the industry, we can realize this potential.
Retail Media is actually more than just a toolbox – it is a whole workshop full of possibilities. I look forward to continuing this journey and am excited about the projects, ideas and successes that await us in the coming year.
