Skai's annual State of Retail Media study reveals key advertiser insights into digital media's fastest growing advertising channel

Rhea-AI Summary

Skai's 2023 State of Retail Media study reveals significant insights into the evolving landscape of retail media advertising, showcasing trends and challenges faced by marketers. Retail media has rapidly become the third-largest digital advertising channel, growing substantially in recent years. Key findings include:

• 50% of marketers plan to use third-party platforms for managing multiple retailers.
• While 77% are satisfied with data-sharing, fewer than half utilize crucial metrics effectively.
• 37% struggle to demonstrate the incremental impact of their investments.
• 91% coordinate retail media with other digital channels, aided by Skai's recently launched comprehensive platform.

The report emphasizes the need for enhanced capabilities to help advertisers adapt to market changes and optimize performance.

Positive

• Retail media is the third-largest digital advertising channel, indicating strong market growth.
• Skai's innovations aim to address challenges faced by marketers, enhancing data utilization and measurement.
• Introduced Competitive Insights dashboard for deeper analysis and understanding of SOV metrics.
• New customizable reports from Amazon Marketing Cloud improve the understanding of campaign effectiveness.

Negative

• 37% of marketers find it challenging to prove the incremental impact of their investments.
• Less than half of advertisers utilize critical data metrics that could enhance retail media success.

The study reflects marketers' plans for increased investment in retail media despite macroeconomic and measurement challenges

SAN FRANCISCO, April 26, 2023 /PRNewswire/ -- Skai, a leading omnichannel marketing platform, has released its annual State of Retail Media study exploring the current and future challenges and strategies identified by marketers as they navigate retail media advertising. The study was conducted in collaboration with BWG Strategy, an advisory organization that helps brands, manufacturers, and retailers plan and execute their ecommerce strategies.

Within just a few years, retail media has become the third-largest digital advertising channel behind paid search and social, and is projected to continue to grow at an astonishing pace.

In the State of Retail Media 2023 report, Skai asked brand marketers for perspectives on investment trends, campaign activation challenges, measures of impact, retailer prioritization, data usage, and how to coordinate retail media with other advertising channels. Notable findings include:

• Managing multiple retailers remains a challenge, with 50% of respondents saying they have invested or plan to invest in a third-party platform like Skai to help. Skai continues to respond to this challenge by adding support for new networks and AI-powered automation capabilities to the platform. Using Skai, advertisers can today plan, activate and measure programs across more than 100 retailers in one place.
  
  
• 77% of advertisers are happy with retailers' data-sharing capabilities, but less than half are actually using data like share of voice (SOV) metrics or competitive insights most crucial to retail media success. To help advertisers capitalize on valuable data opportunities, Skai has released a new Competitive Insights dashboard enabling deeper analysis of the factors affecting retail media SOV. The dashboard provides competitor keyword and product level intelligence for a comprehensive understanding of how brands stack up against competitors and more nuanced, effective optimization and decision-making.
  
  
• One of the most daunting challenges faced by 37% of respondents is proving the incremental impact of their retail media investment; failure to do so could slow plans for growing the channel. Through Skai, advertisers can now run limitless, customizable Amazon Marketing Cloud (AMC) reports that parse Amazon's huge data sets into easy-to-read visualizations making it easier to understand Amazon campaign incrementality. These reports go beyond standard last-click attribution in the native platform to unlock multi touch models and further insights into customer behavior and journey for performance optimization.
  
  
• 91% of respondents report coordinating retail media activity with other digital ad channels. That's easier than ever on Skai's recently launched omnichannel platform, which features holistic planning, testing, activation, and optimization within and across walled gardens. Now advertisers have access to all supported publishers across channels for one flat fee, along with new AI capabilities for better forecasting, budget planning, creative management, and keyword recommendations.

"The advertising world changes fast, and we're dedicated to improving our capabilities just as quickly. These recent innovations are designed to help advertisers on our platform respond decisively and intelligently to changing market conditions and performance results, giving marketers an edge over their competitors," said Guy Cohen, Chief Product Officer at Skai. "Our latest updates solve many of the challenges that respondents identified in our 2023 State of Retail Media study."

To download the full 2023 State of Retail Media Study, please visit this link here.

About Skai
Skai (formerly Kenshoo) is a leading omnichannel marketing platform that uniquely connects data and performance media for informed decisions, high efficiencies, and optimal returns. Its partners include Google, Meta, Amazon Ads, TikTok, Snap, Walmart Connect, Instacart, Roundel, Criteo, CitrusAd, Pinterest, Microsoft, Apple Search Ads, and more.

For over 15 years, Skai has been trusted by an impressive roster of brands, including Pepsico, Michaels, Reckitt, Daimler, LG, and Vodafone. The company is headquartered out of Tel Aviv, with seven international locations, and is backed by Sequoia Capital, Arts Alliance, Tenaya Capital, Bain Capital Ventures, Pitango, and Qumra Capital. Visit skai.io for more information.

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SOURCE Skai

FAQ

What are the key findings from Skai's 2023 State of Retail Media study?

The study indicates retail media is now the third-largest digital advertising channel and highlights challenges such as investment measurement and data utilization.

How does Skai's platform support retailers and advertisers?

Skai provides tools for managing multiple retailers, data analysis, and comprehensive reporting to optimize advertising performance.

What percentage of marketers face challenges proving the impact of retail media investments?

37% of respondents reported difficulties in demonstrating the incremental impact of their retail media investments.

Is Skai's retail media platform integrating AI capabilities?

Yes, Skai's platform includes AI-powered automation for better forecasting, budget planning, and optimization.