The Rise of Retail Media Networks: Challenges and Opportunities in 2023

HyVee's Red Media Launch at GroceryShop 2023

• HyVee's launch of red media was the highlight of the final day at GroceryShop 2023 in Las Vegas.

• Donna Tweeten and Aaron Wiese, the red media presidents, discussed the retail media move and other successful programs under the HyVee umbrella during their presentation.

• HyVee was honored as Supermarket News 2023 retailer of the year, showcasing their industry leadership and success.

• Donna Tweeten expressed confidence in red media's ability to compete with national networks like ABC, NBC, and CBS, positioning HyVee as a trailblazer in the retail media space.

HyVee's Red Media Launch at GroceryShop 2023

Challenges and Opportunities in the Media Industry

• The current landscape of the media industry is facing challenges due to the writers' strike and the upcoming changes in the Screen Actors Guild bill.

• It is estimated that the strike and bill changes could lead to a 30 percent loss in viewership, posing a significant threat to linear TV.

• However, there is still a demand for content in a 30-second format, as evident from the success of platforms like Tick Tock.

• Despite the potential decline in linear TV viewership, there is a continued interest in short-format content with audio-visual messaging.

Challenges and Opportunities in the Media Industry

The Rise of Retail Media Networks

• Retail media networks are emerging as formidable competitors to traditional TV and radio networks like ABC, CBS, NBC, Spotify, and iHeartRadio.

• These networks are not just competing with traditional retailers like Walmart and Albertsons but also with True Media Networks.

• Dollar General's senior vice president and chief marketing officer Chad Fox emphasized that about 80 percent of Dollar General's retail media is conducted through the discount grocer's strategy.

The Rise of Retail Media Networks

Strategic Partnerships with Social Media Giants

• The company has focused on forming strategic partnerships with major social media giants such as Meta and Google, rather than limiting themselves to their own platforms.

• This approach has allowed them to enter into collaborations with other 'walled garden' platforms, expanding their reach and influence beyond traditional boundaries.

• By partnering with these external platforms, they have gained access to a 'clean room' environment for data sharing, random sampling, and the measurement of attribution and incrementality.

• The impact of this retail media phenomenon and the ability to measure attribution and incrementality in such partnerships is considered significant, opening up new opportunities for growth and insight.

• Another key benefit of these partnerships is the extended reach the company has achieved, enabling them to tap into a wider audience and enhance their overall market presence.

Strategic Partnerships with Social Media Giants

The Value of YouTube as an Incremental Reach Platform

• On the open internet, there is a significant number of incremental users and viewers who may not be easily accessible through other platforms.

• While Google is a great partner, YouTube stands out as an incremental reach platform that offers a different way to engage with customers throughout the marketing funnel.

• YouTube provides opportunities for higher-level reach campaigns as well as more conversion-focused strategies, making it a valuable platform for engaging with a diverse audience.

The Value of YouTube as an Incremental Reach Platform

Conclusion:

The GroceryShop 2023 recap sheds light on the evolving media industry and the rise of retail media networks, highlighting the challenges and opportunities that lie ahead. Strategic partnerships with social media giants and the value of YouTube as an incremental reach platform are key factors for industry players to consider.