The Secret Hopes & Dreams of RMN Leaders [New Research Preview]

The Secret Hopes & Dreams of RMN Leaders [New Research Preview]
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[00:00:00] Kiri Masters: Last week I sat in on a first look at some new research from E-Marketer and Bain, which is a game changer in the sense that a lot of research in the retail media landscape comes from the perspective of the buyer that is [00:00:15] brands and media buyers, as opposed to. Real perspectives from the sellers of retail media, as in the retail media networks themselves.

[00:00:26] This is the first research I've seen, which turns the tables [00:00:30] and asks the leaders of RMNs for their perspective on the promises and challenges of the industry. The full research is forthcoming, but here are my personal highlights from the webinar, which previewed the [00:00:45] research findings.

[00:00:46]

[00:00:47] Kiri Masters: But first I need to educate my American listeners on a concept that seems tragically limited to Australia, and that is the baby Chino.

[00:00:58] Traditionally, this was [00:01:00] served free of charge to cafe patrons who brought small children along, and it is a small beverage in an espresso cup full of warm steamed milk with a cappuccino style chocolate dusting, [00:01:15] and a marshmallow on the side. Now my son loved Baby Chinos and he delighted in the theater of consuming them as well.

[00:01:25] Swiping a marshmallow across the foam, dramatically [00:01:30] dunking it in the warm milk and sucking back the foamy drink. But on a recent jaunt back to Perth, I ordered him a baby Chino at lunch, and he refused it saying. I'm eight years old. I'm not a baby. I'm [00:01:45] not going to drink baby Chinos anymore.

[00:01:47] But partway through lunch, I noticed that the marshmallow had disappeared before we left. I asked him one more time, if he'd drink it, fine, I'll drink it. He picked [00:02:00] up the cup, turned around to make sure no one else is watching and knocked the drink back like a shot of liquor.

[00:02:06] And that's the thing about growing up. You pretend you no longer care about the things that you used to enjoy, even if you'd secretly [00:02:15] still love a warm foamy baby chino with a marshmallow on top. There comes a time when you have to act your age, and that is retail media. Right now,

[00:02:26] One of my highlights from this research is the difference [00:02:30] between public confidence versus the private reality of retail media. Now, retailers are talking a big game about the maturity of their measurement capabilities publicly, even though in the report it is a [00:02:45] self-described pain point.

[00:02:47] Measurement and attribution tops the list of challenges with 48% of respondents citing it as their top challenge. Followed closely by talent gaps and advertiser adoption. [00:03:00] Now nearly half of retail media network leaders. Admitting that measurement is their top challenge isn't just noteworthy. It's a confession that the industry's most basic value proposition remains unsolved.[00:03:15]

[00:03:15] And this aligns with what I hear in private conversations with retail media network leaders who are often hamstrung by tech stacks that aren't fit for purpose.

[00:03:26] New leaders are arriving at retail media networks and [00:03:30] discovering what many suspected that the foundation isn't solid enough to break through a plateau of growth that was initially fueled by redistributing trade spend into retail media without careful planning [00:03:45] around both tech and talent investments, many retail media networks, risk getting stuck in what I've previously called the retail media Doom loop.

[00:03:55] Unable to grow beyond repackaged trade dollars and unable to [00:04:00] justify the investment needed to escape. When your time, budget and team are already maxed out. Keeping up with retailer platforms and [00:04:15] media requirements can feel like a never ending labyrinth. That's why even the best brands bring in an execution partner.

[00:04:23] Acosta Group makes retail media execution simpler. They stay ahead of every platform. [00:04:30] Update tech shift. And media spec, so your campaigns actually show up and perform without draining your team.

[00:04:37] Let Acosta group handle the chaos behind the scenes so you can keep building the brand. Check out Acosta [00:04:45] Group and tell them Retail Media Breakfast Club sent you. That's A-C-O-S-T group.

[00:04:52]

[00:04:53] Kiri Masters: Highlight number two. Agentic AI talk tops the list of future concerns. The silence from [00:05:00] most retailers around agentic commerce feels particularly conspicuous given where it ranks. In the survey data, when retail media network leaders were asked about future disruptive forces, respondents put Gen [00:05:15] AI search disrupting discovery

[00:05:17] As the top potential disrupting force with 36% of respondents saying that was the top issue. The second was AG agentic, AI changing ad buyer decision [00:05:30] making.

[00:05:30] I've been writing and speaking about this topic a lot. Which is what happens to offsite and onsite ad spend in a world where entire segments of the current e-commerce purchase journey is managed by an AI shopping [00:05:45] agent. I would be concerned about my job if I was an RMN head, and if I were a CFO or CEO,

[00:05:52] i'd be concerned about my entire net margin in five years. On the webinar, Steven Newborn, who [00:06:00] is a partner and global leader of Bain's retail media and data monetization solutions practice, he said that retailers will need to experiment with alternate ways of working with brand partners to make up for the shortfall.

[00:06:14] I was [00:06:15] for one, very intrigued by what that could mean, but he didn't elaborate on what those alternatives might look like.

[00:06:22] Either time was running out on the webinar or perhaps even the consultants are still working out the answers.

[00:06:28] So retail media is [00:06:30] entering its awkward phase, no longer the scrappy startup that gets a pass for rough edges, but not yet mature enough to handle the scrutiny that comes with being a $200 billion industry. The things that worked when retail [00:06:45] media was small, like managed services covering for limited self-serve capabilities or trade dollars, masking the need for genuine media buyer adoption.

[00:06:56] Those things won't be acceptable in the future. My son [00:07:00] eventually outgrew baby chinos. Will retail media networks eventually mature ~or will they keep sneaking marshmallows when they think no one's watching?~

[00:07:05] ~Or will they keep sneaking marshmallows when they think no one's watching?~

[00:07:05] Or will they keep sneaking marshmallows when they think no one's watching?

[00:07:09]