• DE&I Commitment
  • Careers
  • SIGN IN
  • Book a Meeting
    Book a Meeting
  • Company
    Learn a little more about us, our values, and our team
    Our Values
    We don't just talk the talk; we live by our core values
    About Us
    Empowering brands to realize their potential with data, insights, and technology
    Leadership
    Meet our leadership team
    Secure Data Architecture
    Our promise of data security and privacy. We keep your data safe from publishers, competitors and bad actors
    Corporate Social Responsibility
    We are committed to making a positive impact on our communities and our planet
  • Platform
    Plan, manage, optimize, and measure your campaigns with our omnichannel platform
    Omnichannel Advertising
    A platform that connects all walled garden media for more effective campaigns
    Data Connectivity
    Make data-driven decisions as you plan and strategize
    AI-Powered Capabilities
    Take your campaigns to the next level by leveraging proprietary AI-based technology
    See the industries we serve
    Learn how our customizable solutions can help with your unique needs
    Explore our partner integrations
    See the media, retailer, and data partners we work with
  • Case Studies
  • News and Events
    Check out recent announcements and see what we’re up to
    Newsroom
    Check out our recent media mentions and announcements
    Events
    Join us for our next conference or webinar
    Omnichannel platform launch
    Read the press release to see how we're helping marketers win the walled gardens
    AI Breakthrough Award
    Skai Named "Best AI-based Solution for Advertising" in 6th Annual Artificial Intelligence Breakthrough Awards Program
  • Resources
    From new releases, to industry trends and best practices, Skai has you covered
    The Breakthrough
    Read the latest blog posts and thought leadership from Skai and other industry experts
    Skai Whitepaper Library
    Explore our whitepapers and reports so you can stay up to date
    Skai Research
    Get in-depth analysis, insights and research on the industry's hottest topics
    Quarterly Trends Hub
    Dive into the latest market insights, industry trends, and predictive analysis
    Holiday Hub 2023
    Your go-to source for holiday marketing tips, tricks, and best practices
Back to Blog

Five Innovative Strategies Retailers Will Use in 2023 to Grow Retail Media Advertising Revenue

Yoav Izhar-Prato, CEO @ Skai

January  27, 2023
Retail Media Advertising Revenue

Note – this article originally appeared in Retail-Today.com’s The State of Retail Media 2023 feature, with industry leaders sharing their thoughts on what 2023 holds for the retail space.


Now the third largest digital advertising channel behind just paid search & social advertising, retail media is forecasted to reach $160 billion by 2027—representing 18% of global digital advertising and 11% of total advertising. 

Before retail media, brands could only address 99% of the digital path to purchase with existing channels. It was that last 1%—the essential part of the customer journey at the very bottom of the funnel within online stores—where marketing exposure ended. But now, with retail media, marketers can influence shoppers within the online store and closer to the point of purchase. 

While retail media has been a game-changer for brands, the impact on retailers may be more significant.  This burgeoning channel represents a new, high-margin revenue stream that is helping them offset the loss of sales from the highly competitive and fragmented online shopping landscape. 

Growing Retail Media Advertising Revenue in 2023

Skai’s 30+ retailer advertising partners include Amazon, Walmart, Target, and Instacart, and I am in the fortunate position of hearing directly about how they plan to fuel growth.

Here are some of the strategies that I’ve heard:

Retail media growth must go beyond search listings

The bulk of the first era of retail media has been keyword-triggered listings in the retailer search engine results pages. To grow ad revenue, retailers will support the adoption of display, video, and CTV, which can help brands reach consumers up the funnel. 

And the treasure trove of first-party shopper data is no longer restricted to ads within the retailer’s website. Marketers can leverage the retailer’s rich browser/buyer-targeting data across the web to drive them back to retailer product pages. This will not just be limited to online ads but also extend to OOH (out-of-home ad formats) within physical stores. 

amazon ppc sponsored products

Tapping into new market segments such as non-endemic advertisers

 Retailers are actively reaching out to brands that don’t even sell products. Endemic retail media are ads that drive users to product pages within those online stores. Non-endemic retail media are ads that drive users to destinations away from the online store. An example of a non-endemic retail media campaign would be an Italian restaurant that advertises a dinner promotion to someone searching a retailer for spaghetti sauce. 

Omnichannel retailers take measurement to the next level

Within retail media publishers, there are those which are primarily digital such as Amazon or Instacart, and ones that are “omnichannel” such as Walmart or Target that have both large online and offline footprints. These omnichannel retailers offer brands the opportunity for closed-loop measurement. For CPGs, a better understanding of the online/offline relationship is absolutely necessary to unlock the next era of their growth. 

Data as added value

Every penny will come under scrutiny in 2023 as brands strive for profitability. Retailers will be under pressure to make more data available so that their advertiser clients are equipped with the insights they need to optimize their programs. Today, advertisers rely on third-party scraping platforms such as Profitero and Analytic Index for digital shelf analytics like category share. Some retailers are exploring clean rooms—such as Amazon’s has with its Amazon’s Marketing Cloud—as a way for brands to safely co-mingle their proprietary back-end data with highly granular Amazon insights. 

Becoming more programmatic to reduce market friction

Globally, there are over a hundred retailers either offering advertising directly or through technology aggregators. This complexity has resulted in most of the spend being concentrated into a small group of major players. For the channel to truly grow, it will need to become more programmatic and easier to buy across platforms. This is especially true for the retailers outside of the market leaders—it will be difficult for them to accelerate budgets if they don’t make it easier for marketers to work with them.  

The retail media channel is young, but its growth is off the charts, and it’s changing the face of ecommerce.

But, of course, an increase in investments is also bringing on an increase in competition. To truly become advertising publishers, retailers will have to spread their wings and innovate in 2023. 

marketer using incrementality part 2

Now is the time to invest in your retail media technology foundation

As part of Skai’s omnichannel marketing platform, our Retail Media solution empowers brands to plan, execute, and measure digital campaigns that meet consumers when and where they shop. Built with best-in-class automation and optimization capabilities, our unified platform allows you to manage campaigns on 30+ retailers including Amazon, Walmart, Target, and Instacart all in one place.

Client results include:

  • 461% increase in Amazon Ads ROAS and 57% increase in page traffic for Bondi Sands
  • 92% increase in share of voice on Amazon for a Fortune 500 CPG brand
  • 72% increase in revenue for VTech
  • 1,390% year-over-year sales growth for Kamado Joe

We invite you to schedule a quick demo to see all of our cutting-edge retail media innovation for yourself.

Request a Demo of Skai

Related Posts

  • Kroger Precision Marketing Announces Its Retail Media Partnership with Skai
    Read More
  • Woman sitting down at her desk browsing a retail fashion sale with her credit card in hand.
    Dive into the Retail Media Advertising FAQs
    Read More
  • [WATCH] Skai Retail Media Roundtable Webinar, 2022 Vol 1
    Read More
  • A customer on a laptop at a coffee shot is exposed to retail media advertising, which is produced to attract them into buying items.
    The Skai 5: Five Things to Know About Retail Media Advertising This Year
    Read More
  • A pole with an orange ribbon indicates a measurement of distance.
    Amazon Ads Data Lays Down a Marker for Retail Media Advertising
    Read More
  • Mother’s Day 2022 Retail Insights from Walmart Connect
    Read More
  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
  • Share via Email
  • Copy Link
    Copied!
Tags: Amazon, Audience, Create, Data, Measure, Omnichannel, Optimize, Plan, Retail, Retail Media, Target, xTLx

    Subscribe to Updates

    Media that matters.
    Marketing that works.
    © 2023 Kenshoo, Ltd. All Rights Reserved.
    Privacy Policy. Cookie Policy. Recruitment Privacy Policy.
    • Omnichannel Strategy
      • Skai HQ
      • Dynamic Marketing Mix
      • Budget Forecasting
      • Strategic Consulting
    • Walled Garden Advertising
      • Overview
      • Retail Media
      • Paid Search
      • Paid Social
      • App Marketing
      • Auditing
      • Expert Services
    • Marketing Measurement
      • Incrementality
      • Experiments
      • Cross-Channel Attribution
    • Resources
      • Blog
      • Glossary
      • Case Studies
      • Capabilities
      • Skai Research Center
      • Quarterly Trends Hub
      • Training & Enablement
      • Developer Hub
    Privacy Preference

    We use cookies on our website. Some of them are essential, while others help us to improve this website and your experience.

    Privacy Preference

    Save All

    Save

    Accept Only Essential Cookies

    Manage Cookie Preferences

    Cookie Details Privacy Policy Imprint

    Privacy Preference

    Here you will find an overview of all cookies used. You can give your consent to whole categories or display further information and select certain cookies.

    Save All Save Accept Only Essential Cookies

    Back

    Privacy Preference

    Essential cookies enable basic functions and are necessary for the proper function of the website.

    Show Cookie Information Hide Cookie Information

    Name
    ProviderOwner of this website, Imprint
    PurposeSaves the visitors preferences selected in the Cookie Box of Borlabs Cookie.
    Host(s).skai.io, skai.io
    Cookie Nameborlabs-cookie
    Cookie Expiry1 Year
    Name
    ProviderOwner of this website
    Host(s)skai.io
    Cookie Namewordpress_sec_,wordpress_test_cookie,wp-postpass_*, wordpresspass_*, wordpressuser_*
    Cookie ExpirySession / 1 Year
    Name
    ProviderOwner of this website
    PurposeThis cookie stores selections made by the user in the Accessibe tool in order to maintain those settings on future visits. These cookies help us make our website compliant with our obligations under US law.
    Privacy Policy https://accessibe.com/privacy-policy
    Cookie NameacsbState, acsbReset
    Cookie Expiryn/a

    We use these cookies to enhance functionality and allow for personalisation, such as live chats, videos and the use of social media.

    Show Cookie Information Hide Cookie Information

    Accept
    Name
    ProviderOwner of this website
    Host(s).comeet.co, www.comeet.co
    Cookie Namevisid_incap_, nlbi_#######, incap_ses_, referrer22_00a, incap_ses_1364_2167377
    Cookie ExpirySession / 1 Year
    Accept
    Name
    ProviderOwner of this website
    Host(s).chilipiper.com, skai.chilipiper.com
    Cookie Namefs_uid, CHILI_PIPER_CLUSTER, guest-session, _sp_ses*, _sp_id*
    Cookie ExpirySession / 2 Years
    Accept
    Name
    ProviderOwner of this website
    Accept
    Name
    ProviderOwner of this website
    Host(s)skai.io
    Cookie NamemoduleFormPardotDownload
    Cookie Expiry30 days

    Statistics cookies collect information anonymously. This information helps us to understand how our visitors use our website.

    Show Cookie Information Hide Cookie Information

    Accept
    Name
    ProviderGoogle Ireland Limited, Gordon House, Barrow Street, Dublin 4, Ireland
    PurposeCookie by Google used for website analytics. Generates statistical data on how the visitor uses the website.
    Privacy Policy https://policies.google.com/privacy?hl=en
    Cookie Name_ga, _ga_*, _gat,_gat_*,_gid, GOOGLE_ABUSE_EXEMPTION, AEC, __Secure-ENID, SOCS, CONSENT
    Cookie ExpirySession / 2 Years
    Accept
    Name
    ProviderHotjar Ltd., Dragonara Business Centre, 5th Floor, Dragonara Road, Paceville St Julian's STJ 3141 Malta
    PurposeHotjar is an user behavior analytic tool by Hotjar Ltd.. We use Hotjar to understand how users interact with our website.
    Privacy Policy https://www.hotjar.com/legal/policies/privacy/
    Host(s)*.hotjar.com
    Cookie Name_hjClosedSurveyInvites, _hjDonePolls, _hjMinimizedPolls, _hjDoneTestersWidgets, _hjIncludedInSample, _hjShownFeedbackMessage, _hjid, _hjRecordingLastActivity, hjTLDTest, _hjUserAttributesHash, _hjCachedUserAttributes, _hjLocalStorageTest, _hjptid, _hjSessionUser_2229986, _hjIncludedInPageviewSample, _hjIncludedInSessionSample, _hjAbsoluteSessionInProgress, _hjFirstSeen
    Cookie ExpirySession / 1 Year
    Accept
    Name
    ProviderOwner of this website
    PurposeVWO is AB Testing software that we'll use to test different elements of the website - form placement, nav, different page layouts, etc.
    Privacy Policy https://vwo.com/compliance/cookies-notice/
    Host(s).skai.io, dev.visualwebsiteoptimizer.com
    Cookie Name_vis_opt_exp_{CAMPAIGNID}_goal_{GOALID}, _vis_opt_test_cookie, _vis_opt_exp_{CAMPAIGNID}_combi, _vis_opt_exp_{CAMPAIGNID}_exclude, _vis_opt_exp_{CAMPAIGNID}_split, _vis_opt_s, _vis_opt_out, _vwo_uuid, _vwo_uuid_{CAMPAIGNID}, _vwo_ds, _vwo_sn, _vwo_uuid_v2, _vis_opt_exp_{CAMPAIGNID}_combi_choose, _vwo_referrer, _vwo, _vwo_global_opt_out, _vwo_ssm, uuid
    Cookie ExpirySession / 10 Years

    Marketing cookies are used by third-party advertisers or publishers to display personalized ads. They do this by tracking visitors across websites.

    Show Cookie Information Hide Cookie Information

    Accept
    Name
    ProviderPardot
    PurposeCookie name associated with services from marketing automation and lead generation platform Pardot. The visitor value is the visitor_id in your Pardot account. This cookie is set for visitors by the Pardot tracking code.
    Host(s).pardot.com, pi.pardot.com, skai.io
    Cookie Namepardot, visitor_id*, lpv*
    Cookie ExpirySession / 10 Years
    Accept
    Name
    ProviderMeta Platforms Ireland Limited, 4 Grand Canal Square, Dublin 2, Ireland
    PurposeCookie by Facebook used for website analytics, ad targeting, and ad measurement.
    Privacy Policy https://www.facebook.com/policies/cookies
    Cookie Name_fbp,act,c_user,datr,fr,tr,m_pixel_ration,pl,presence,sb,spin,wd,xs
    Cookie ExpirySession / 1 Year
    Accept
    Name
    ProviderLinkedin
    Cookie Namelidc, li_gc, lang, AnalyticsSyncHistory, UserMatchHistory, li_sugr, bcookie, TDCPM, TDID, bscookie, ln_or
    Cookie ExpirySession / 1 Year
    Accept
    Name
    ProviderSkai
    Cookie Nameken_gclid
    Accept
    Name
    Provider6sense
    Cookie Name_gd_session, _an_uid, _gd_visitor, _gd_svisitor, 6suuid
    Cookie ExpirySession / 400 Days
    Accept
    Name
    ProviderGoogle Ireland Limited, Gordon House, Barrow Street, Dublin 4, Ireland
    PurposeCookie by Google used for conversion tracking of Google Ads.
    Privacy Policy https://policies.google.com/privacy?hl=en
    Cookie NameIDE, 1P_JAR, NID, _gcl_au, OTZ, test_cookie
    Cookie ExpirySession / 400 Days
    Accept
    Name
    ProviderOwner of this website
    Cookie NamePHPSESSID, sid, okto-autoposter-XXX, oktgid, oktsid, oktlogid-XXX, oktolead-XXX-Email, oktolead-XXX-Company, oktolead-XXX-FirstName, oktolead-XXX-LastName, oktolead-XXX-Phone, oktolead-XXX-Country, oktolead-XXX-Url, oktolead-XXX-State, oktolead-XXX-Comment, optout
    Cookie ExpirySession / 2 Years

    Content from video platforms and social media platforms is blocked by default. If External Media cookies are accepted, access to those contents no longer requires manual consent.

    Show Cookie Information Hide Cookie Information

    Accept
    Name
    ProviderWistia
    Host(s).wistia.com
    Cookie Namecb_anonymous_id, _sp_ses.2b40, _li_dcdm_c, __hssrc, _gcl_au, _clsk, hubspotutk, _sp_id.2b40, __hssc, __hstc, _uetsid, _uetvid, _gid, _ga, _ga_GQR109DZ3Y, _lc2, fpi, _ex-pricing-cta, _fbp, cb_group_id, cb_user_id, _clck
    Cookie ExpirySession / 400 Days
    Accept
    Name
    ProviderMeta Platforms Ireland Limited, 4 Grand Canal Square, Dublin 2, Ireland
    PurposeUsed to unblock Instagram content.
    Privacy Policy https://www.instagram.com/legal/privacy/
    Host(s).instagram.com
    Cookie Namepigeon_state
    Cookie ExpirySession
    Accept
    Name
    ProviderOpenstreetmap Foundation, St John’s Innovation Centre, Cowley Road, Cambridge CB4 0WS, United Kingdom
    PurposeUsed to unblock OpenStreetMap content.
    Privacy Policy https://wiki.osmfoundation.org/wiki/Privacy_Policy
    Host(s).openstreetmap.org
    Cookie Name_osm_location, _osm_session, _osm_totp_token, _osm_welcome, _pk_id., _pk_ref., _pk_ses., qos_token
    Cookie Expiry1-10 Years
    Accept
    Name
    ProviderTwitter International Company, One Cumberland Place, Fenian Street, Dublin 2, D02 AX07, Ireland
    PurposeUsed to unblock Twitter content.
    Privacy Policy https://twitter.com/privacy
    Host(s).twimg.com, .twitter.com
    Cookie Name__widgetsettings, local_storage_support_test
    Cookie ExpiryUnlimited
    Accept
    Name
    ProviderVimeo Inc., 555 West 18th Street, New York, New York 10011, USA
    PurposeUsed to unblock Vimeo content.
    Privacy Policy https://vimeo.com/privacy
    Host(s)player.vimeo.com
    Cookie Namevuid
    Cookie Expiry2 Years
    Accept
    Name
    ProviderGoogle Ireland Limited, Gordon House, Barrow Street, Dublin 4, Ireland
    PurposeUsed to unblock YouTube content.
    Privacy Policy https://policies.google.com/privacy?hl=en&gl=en
    Host(s)google.com
    Cookie NameCONSENT
    Cookie Expiry6 Month

    Borlabs Cookie powered by Borlabs Cookie

    Privacy Policy Imprint