The Digiday Podcast: Digiday at Cannes – Ad Networks Take Center Stage

Release Date: June 17, 2025

Introduction

In this episode of The Digiday Podcast, host Kameka McCoy engages in a comprehensive discussion with Peggy McCann, Chief Media Officer of GSD&M AD Agency, focusing on the evolving landscape of retail media. Recorded live at the prestigious Cannes Lions International Festival of Creativity, the conversation delves into the current state, growth, and future directions of retail media networks, highlighting their increasing significance in the digital marketing ecosystem.

The Rising Prominence of Retail Media Networks

Kameka McCoy initiates the conversation by addressing the burgeoning presence of retail media networks at Cannes, noting their rapid evolution and expanded roles. Peggy McCann underscores this trend, stating, “[Retail media networks] are predicted to actually surpass linear TV spending this year” (01:20). She highlights the maturation of these networks over the past two years, transitioning from obscure entities to key players with dedicated subcategories at Cannes Lions, signaling the industry's heightened recognition and investment.

Investment Trends and Ad Format Innovation

The discussion shifts to the financial aspects, with Peggy McCann revealing a projected 15% year-over-year increase in retail media network spending (02:32). She emphasizes the shift from purely lower-funnel conversion tactics to a more sophisticated, full-funnel approach. "They really have a role within the full funnel ecosystem," McCann explains (02:20). This evolution is marked by the introduction of new ad formats focused on discovery and emotional engagement, aiming to recreate the tangible, experiential aspects of physical retail environments that initially drew consumers.

Sustained Impact and Industry Maturation

Addressing whether retail media is more than a fleeting trend, McCann affirms its staying power, contrasting it with past fads like the Metaverse. “Retail media's staying power being here at Cannes” suggests a long-term integration into the marketing fabric (04:03). She attributes this durability to the foundational value of retailers' first-party data and the subsequent efforts to monetize and leverage this asset effectively. Initially, the challenge was in fragmenting and managing spend across multiple retail networks, but recent advancements in programmatic buying on the open web have streamlined this process, allowing for greater scalability and optimization.

Strategic Partnerships and Enhancing Measurement

A significant portion of the conversation revolves around the necessity for robust measurement and attribution within retail media. McCann highlights the critical need for understanding incremental lift and customer acquisition metrics, stating, “We do need help from the retailer networks to help us truly understand what is that incremental lift that we're getting in new customers” (06:19). Moreover, she discusses the importance of flexibility in marketing strategies amidst economic challenges like inflation and tariffs. Retail media networks are seen as pivotal partners in navigating these uncertainties, offering solutions such as Walmart’s curated baskets and Instacart’s smart carts to enhance consumer value and brand loyalty.

Tailored Conversations and Client-Centric Strategies

McCann shares her strategic approach to engaging with retail media networks at Cannes, emphasizing one-on-one meetings tailored to the unique needs of her diverse clients, including those in CPG and financial services (08:13). She addresses client feedback, noting a strong push for extending retail media presence beyond on-site platforms. For instance, she mentions collaboration with Instacart’s smart carts to integrate in-store experiences with digital engagement, aiming to scale utility and reach. Additionally, partnerships like Dick’s Sporting Goods with Roku exemplify innovative uses of data to expand advertising reach into Connected TV (CTV), thereby enhancing campaign effectiveness.

Flexibility in Negotiations and Rapid Adaptation

Flexibility emerges as a cornerstone of successful retail media partnerships. McCann articulates her primary objective at Cannes: advocating for adaptable negotiation terms to accommodate fluctuating budgets and swift pivots necessitated by economic pressures. “Having the flexibility to optimize in a programmatic way is really helping us quite a bit” (14:57) she explains. This adaptability extends to modifying messaging, media placements, and audience targeting based on real-time economic indicators, ensuring that marketing efforts remain responsive and effective amidst uncertainty.

Balancing Business and Networking at Cannes

Beyond strategic discussions, McCann reflects on the value of stepping away from daily operational challenges to engage in broader, forward-thinking dialogues at Cannes (16:39). Participating in panels and learning from other marketing leaders provides her with fresh perspectives on combating consumer fragmentation—a growing concern as consumers diversify their content consumption across multiple devices. By integrating media and creative strategies, GSD&M AD Agency aims to counteract this fragmentation, fostering deeper brand connections and driving incremental customer acquisition.

Future Outlook and Continued Engagement

Looking ahead, McCann anticipates that the partnerships between retail media networks and other major brands or media entities will drive the next wave of innovation. While pop-up activations may not necessarily grow in size, the synergy between retailers and their partners is expected to create more substantial and impactful marketing initiatives (18:30). This collaborative approach is poised to enhance inventory scalability and deliver more comprehensive marketing solutions.

Conclusion

As The Digiday Podcast episode concludes, Peggy McCann shares her plans to attend additional panels and reconnect with industry peers, underscoring the importance of both continuous learning and networking in driving successful retail media strategies. Her insights at Cannes reflect a dynamic and maturing retail media landscape, one that is poised to play an increasingly central role in the digital marketing ecosystem.

Key Takeaways

• Retail Media Networks' Growth: Projected to surpass linear TV spending, indicating their rising importance.
• Full-Funnel Marketing: Transition from lower-funnel tactics to comprehensive marketing ecosystems.
• Data Utilization: Leveraging first-party data for scalable, programmatic advertising solutions.
• Flexibility and Adaptation: Essential for navigating economic uncertainties and optimizing marketing strategies.
• Strategic Partnerships: Collaborations with brands and media entities to enhance reach and effectiveness.
• Future Innovations: Anticipation of more integrated and impactful marketing initiatives through partnerships.

Notable Quotes

• “Retail media networks are predicted to actually surpass linear TV spending this year.” – Peggy McCann (01:20)
• “They really have a role within the full funnel ecosystem.” – Peggy McCann (02:20)
• “We do need help from the retailer networks to help us truly understand what is that incremental lift that we're getting in new customers.” – Peggy McCann (06:19)
• “Having the flexibility to optimize in a programmatic way is really helping us quite a bit.” – Peggy McCann (14:57)

This detailed summary captures the essence of the conversation between Kameka McCoy and Peggy McCann, providing valuable insights into the current and future state of retail media networks as discussed at Cannes.