Just a few years ago, the discussion was limited to closed retail media solutions provided by retail groups, but the market has now broken out of those boundaries. New players, new audiences, and open networks are shaping an entirely new playing field for retailers, advertisers, and media agencies alike.
Retail media is expanding in multiple directions
Retail media has already gone global – and in Finland, the development is progressing rapidly. While the biggest online retail media players are most often discussed globally, companies like Sainsbury’s and Carrefour have successfully built omnichannel retail media concepts that leverage both physical and digital channels.
But this is not just a game for large retail chains. Medium-sized and specialized players have also begun to see the potential. In Finland, several initiatives are underway where new networks are being built in environments like SuperPark – settings that enable specific consumer behavior.
“The number of players has started to grow significantly. The number of retailers involved in retail media has exploded, and at the same time, the actors have become much more diverse across different consumer business sectors.” – Teemu Kurri
The definition of “retailer” is expanding – Commerce media becomes a part of everyday life
“The definition of retailer is broadening, and with that, retail media will open up to all advertisers in the future – especially those whose products aren't sold on retailer shelves.” – Hannaleena Koskinen
Although retail media is no longer just the domain of suppliers to retail chains, that doesn’t mean the traditional model is disappearing. On the contrary: retail-owned media will remain, but now there is room for new players alongside them. Open retail media allows visibility for brands not stocked by the retailer but whose target audiences frequent the same environments.
In the U.S., the term "commerce media" is already being used more broadly to describe how all kinds of consumer-facing businesses can benefit from retail media.
New audiences and networks offer advertisers new opportunities
The audience of a single smaller player may not be sufficient for an advertiser on its own. But when these players join forces in networks, advertisers gain access to audiences like health-conscious consumers, drivers, or travelers on a national scale.
The role of the open retail media network is to organize media sales, offer tools for data management, and create a shared inventory.
Even smaller retail media companies can collectively reach consumers based on life situations. ReTALE’s collaboration with SuperPark is a great example of how combining new audiences and networks allows advertisers to reach a natural fit in an active, family-oriented environment.
Non-endemic advertisers are now joining in Finland too
A non-endemic advertiser refers to a brand whose products are not in the selection of a given retailer but still uses that retailer’s channels to reach its audience. The transformation of retail media is now creating space for these brands.
According to research by eMarketer, in the U.S., more than half of major non-endemic advertisers have already tested retail media. In Finland, this change is just beginning, but the enthusiasm to use retail media in this context is high among both advertisers and media agencies.
Finland is a pioneer in omnichannel retail media
Globally, retail media has until recently been a strongly online-driven phenomenon that originated with Amazon and initially continued mostly through retailers’ own digital channels (onsite), later spreading to third-party media (offsite).
In Finland, development has followed its own path: we’ve invested in leveraging digital in-store media at a very early stage, which has made Finland a pioneer in omnichannel retail media.
“The reason for this is likely that e-commerce has never been such a dominant channel in Finland.” – Hannaleena Koskinen
The future of retail media: Open, omnichannel, network-based
The future of retail media is built on openness, omnichannel reach, and network structures. In this development, everyone wins:
- The consumer, who receives more relevant messages at the right moment.
- The advertiser, who gains access to new channels and target groups.
- Retail media networks, which are better able to reach consumers and commercialize customer interactions effectively.
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Watch Teemu's and Hannaleena’s full presentation from the IAB webinar below.
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Written by Hannaleena Koskinen, Chief Commercial Officer, ReTALE by Aller Media Nordics, and Teemu Kurri, Co-Founder & Chief Growth Officer at Doohlabs & Chairman of the Board at Craneworks.
Originally published on the ReTALE blog.
