The CPG Guys Podcast: Brand Retail Media Spend Sentiments from CES LIVE with CVS Media Exchange’s Parb Dhariwal and Andrew Lipsman

Release Date: February 2, 2025

In this enlightening episode of The CPG Guys, hosts Peter V.S. Bond and Sri Rajagopalan delve into the evolving landscape of retail media spend, drawing insights from a live discussion at the 2025 Consumer Electronics Show (CES) in Las Vegas. Featuring esteemed guests Parbinder Dhariwal, Vice President and General Manager of CVS Media Exchange, and Andrew Lipsman, founder of Media Ads Commerce and a respected industry analyst, the conversation navigates the future of retail media, the integration of loyalty programs, and the shifting dynamics of marketing budgets.

1. Introduction to the Panelists

Timestamp [04:15] - [04:50]

Peter V.S. Bond kicks off the episode by introducing the panelists:

• Andrew Lipsman: An industry analyst with a wealth of experience at companies like eMarketer and founder of Media Ads Commerce.

• Parbinder “Parv” Dhariwal: General Manager and Vice President for CVS Media Exchange, the retail media arm of CVS Health.

2. Research Findings: Brand Retail Media Investment in 2025

Timestamp [05:41] - [07:24]

Andrew Lipsman presents his recent research, revealing brands' expectations for retail media investment in 2025. He asserts that the past years laid the foundation for a holistic integration of retail media into the broader marketing strategy.

Andrew Lipsman [06:25]:
"This year I think everything that's been happening is an undercurrent. The last couple of years is starting to come together holistically where... you can't just have E commerce off in the corner."

3. Evolution to Full Funnel Retail Media

Timestamp [07:24] - [08:27]

The discussion shifts to the concept of "full funnel retail media," highlighting the transition from solely focusing on lower-funnel E-commerce activities to encompassing upper-funnel strategies like streaming TV and in-store media.

Andrew Lipsman [07:24]:
"You can't just have E commerce off in the corner."

Parbinder Dharawal [08:27]:
"Yeah, well I think the differentiator that we talk about in the retail media space is you have retail media that has loyalty programs and there's retail media that does not have loyalty programs."

4. The Role of Loyalty Programs in Retail Media

Timestamp [09:17] - [10:29]

Parbinder emphasizes the critical role of loyalty programs in enhancing retail media effectiveness. These programs provide valuable consumer data, ensuring high signal fidelity and enabling precise targeting and measurement.

Parbinder Dharawal [09:17]:
"We see a 90 plus percent, one to one match rate on the consumer because of our loyalty program."

Andrew Lipsman [10:22]:
"And that connective tissue is the loyalty program. That data fidelity is everything that fuels the closed loop targeting measurement."

5. Market Growth and Shifts in 2024 to 2025

Timestamp [11:00] - [12:28]

Reflecting on 2024, Andrew notes steady market growth driven predominantly by giants like Amazon and Walmart. Looking ahead to 2025, he anticipates a surge in sophisticated upper-funnel advertising and the burgeoning significance of in-store retail media.

Andrew Lipsman [11:49]:
"We are going to get very sophisticated upper funnel advertising with great targeting data and we're going to see it start to explode on TV screens."

Andrew Lipsman [12:16]:
"It's the TV of the future because it has that scale and the chance to reach people with consumer brand messages in, in a, a high quality environment."

6. In-Store Media Innovations: Digital End Caps and Screens

Timestamp [22:12] - [26:10]

Parbinder details CVS Media Exchange's advancements in in-store media, including the development of digital end caps and screen networks. These innovations aim to enhance consumer engagement and drive incremental sales through high-quality, contextually relevant advertising.

Parbinder Dharawal [25:37]:
"One in five consumers will purchase or make an action as a result of what they see on the screen."

Andrew Lipsman [24:16]:
"That is the most incrementality."

7. Measurement Metrics: From ROAS to Incrementality

Timestamp [35:19] - [37:43]

A critical discussion arises around traditional metrics like Return on Ad Spend (ROAS). Andrew challenges the efficacy of ROAS in retail media, advocating for a shift towards incrementality to better capture the true impact of advertising efforts.

Andrew Lipsman [35:19]:
"ROAS that they're still addicted to... it's just a sale that happens to happen afterwards."

Peter V.S. Bond [36:16]:
"In store retail media... it is closed loop performance marketing. It is such a better tool, right?"

8. Shifting Budgets: From Linear TV to Retail Media

Timestamp [31:21] - [34:18]

The conversation explores the potential reallocation of marketing budgets from traditional linear TV to retail media. Both Parbinder and Andrew highlight the increasing effectiveness and measurement capabilities of retail media, making it an attractive alternative for reaching key demographics.

Andrew Lipsman [32:28]:
"I think we're really going to have to see it to understand it. Once you start to see these stores look more like media channels and have a level of ubiquity, that alone is going to do a lot of the heavy lifting."

Parbinder Dharawal [34:18]:
"With the right measurement... I think we can definitely start to shift that."

9. Global Perspectives: US vs Europe

Timestamp [16:00] - [17:58]

Comparing the US market to Europe, Andrew and Parbinder discuss how European retailers, exemplified by Tesco, have successfully integrated in-store media, overcoming challenges that the US market still faces. This contrast underscores the importance of collaboration and strategic investment in retail media.

Andrew Lipsman [16:19]:
"The biggest grocer over there. And they're doing all sorts of in store media."

Parbinder Dharawal [17:58]:
"Whether it's engagement, education, whether it's around disease state awareness, whether there's multiple different ways in which we can bring that narrative into those local communities..."

10. Education and Awareness in Retail Media

Timestamp [15:23] - [28:42]

A recurring theme is the necessity for education and increased awareness among CMOs and brand marketers about the benefits and opportunities within retail media. Parbinder emphasizes the industry's collective responsibility to demystify retail media and demonstrate its efficacy through transparent measurement and case studies.

Andrew Lipsman [26:52]:
"They're still not investing against it enough because they're more expensive like the..."

Parbinder Dharawal [28:27]:
"We have to help people trust the numbers... there's got to be transparency in the way in which we measure."

11. Future Outlook and Conclusions

Timestamp [32:29] - [38:39]

As the episode concludes, both panelists express optimism about the future of retail media. Parbinder highlights CVS Media Exchange's commitment to innovation and measurement, while Andrew underscores the transformative potential of in-store media. The hosts encourage listeners to engage further through available resources and upcoming events, reinforcing the podcast’s role as a pivotal source of industry insights.

Parbinder Dharawal [37:22]:
"Yeah. It is. Awareness is... [emphasis on incrementality]."

Andrew Lipsman [37:43]:
"RCausal modeling... RMNs always pop as by far the most incremental channels by far."

Key Takeaways:

• Full Funnel Retail Media: Transitioning from purely E-commerce to encompassing upper-funnel strategies enhances brand engagement and measurement capabilities.

• Loyalty Programs: Essential for high-fidelity consumer data, enabling precise targeting and effective attribution.

• Measurement Shift: Moving from ROAS to incrementality provides a more accurate assessment of advertising impact.

• In-Store Innovations: Digital end caps and screen networks represent significant opportunities for driving incremental sales.

• Budget Reallocation: Retail media offers a compelling alternative to traditional linear TV, especially with its advanced measurement and targeting.

• Global Best Practices: Learning from European retailers can accelerate the adoption and effectiveness of retail media in the US.

• Education and Transparency: Critical for gaining trust and demonstrating the value of retail media to CMOs and brand marketers.

This episode of The CPG Guys offers a comprehensive exploration of the current trends and future directions in retail media spend, providing valuable insights for brands, retailers, and marketers seeking to navigate the complex digital landscape.