Summary of "Why Retail Media is Still Grappling with Definition and Spending Uncertainties" – The Digiday Podcast

Release Date: April 8, 2025
Host/Author: Digiday
Episode Title: Why Retail Media is Still Grappling with Definition and Spending Uncertainties

Introduction and Context

In this episode of The Digiday Podcast, hosts Kameka McCoy and Tim Peterson delve into the evolving landscape of retail media amidst economic uncertainties. They explore how factors like tariffs, the TikTok ban, and the exponential growth of retail media networks are reshaping strategies for brands, agencies, and publishers in the digital age.

Economic Uncertainty: Tariffs and TikTok Ban

The discussion opens with the impact of recent economic headwinds, including the extension of the TikTok ban and new tariffs imposed on Chinese goods. Kameka comments on the lack of April Fool's jokes from brands, attributing it to the prevailing economic tensions.

Kameka McCoy [00:23]: "Speaking of economic uncertainty, TikTok bans and tariffs, those are actually three of the things that we'll be talking about in today's juicy scoops."

Tim adds insights into the political maneuvering surrounding TikTok, highlighting how attempts to stabilize the platform through potential deals have been derailed by reciprocal tariffs.

Tim Peterson [05:07]: "Wall Street Journal reported that Oracle was leading a group of US investors to acquire TikTok, but tariffs led China to reject the deal, pushing us back into what we’re calling 'TikTok Ellipse.'"

The hosts underscore the broader economic implications, noting that tariffs are affecting a wide range of products and industries, complicating media buying and marketing strategies.

Growth and Definition of Retail Media Networks

Kameka introduces the guest, Amy Owen, Chief Commerce Officer at Canesso, to discuss the burgeoning number of retail media networks, which have surged from around 200 to over 250 in recent years. Amy provides a historical perspective on retail media, tracing its roots back to in-store promotions and evolving into a complex digital ecosystem.

Amy Owen [19:24]: "Retail media is unique because it's entirely tied to the store or merchandise. Everything, whether it's advertising or merchandising, revolves around selling a product either online or in-store."

Amy differentiates between various categories within retail media, including commerce media and aggregators, emphasizing the importance of understanding these distinctions for effective budget allocation.

Joint Business Planning (JBP) and Flexibility in Partnerships

A significant portion of the episode focuses on Joint Business Planning (JBP), a strategic approach akin to upfront deals, where brands and retailers collaborate closely to optimize media spend amidst economic challenges. The conversation highlights the necessity of flexibility in these agreements to navigate uncertainties like rising tariffs and fluctuating consumer behaviors.

Kameka McCoy [33:10]: "If we bring in third-party measurement platforms and there's no standardization in definitions, how do I measure the impact of my ad spend?"

Amy responds by outlining strategies for harmonizing metrics and establishing common standards to evaluate the effectiveness of retail media investments.

Amy Owen [46:21]: "We've created a tool that integrates the retail landscape, allowing us to harmonize media spend with actual sales data, providing a standardized view of effectiveness."

Acquisition of Infosum by WPP

Tim shifts the conversation to recent industry developments, notably WPP's acquisition of Infosum, a data technology provider. This move, along with similar acquisitions by Publicis and Omnicom, signifies a strategic push by major agency holding companies to strengthen their data capabilities and secure long-term client relationships.

Tim Peterson [12:50]: "Having more access to clients' data gives agencies more security and enables smarter ad spend decisions, fostering more sticky, enterprise-level relationships."

Amy explains that Infosum's approach to federating data, as opposed to centralizing it, offers a distinctive advantage in managing client data securely and effectively.

Amy Owen [13:00]: "Infosum's federated data model allows clients to maintain control over their data, which differentiates it from other data-centric acquisitions."

Standardization and Measurement Challenges

The lack of standardization in measuring retail media effectiveness poses significant challenges for marketers. Amy emphasizes the need for a common dictionary and standardized metrics to assess return on ad spend (ROAS) accurately.

Amy Owen [25:08]: "Retailers each have their own definitions and methodologies for metrics like incremental ROAS, making it difficult to compare performance across different networks."

Kameka highlights the frustration among marketers trying to justify increased spending without clear, standardized measurement frameworks.

Kameka McCoy [43:23]: "If we bring in third-party measurement platforms and there's no standardization in definitions, how do I measure the impact of my ad spend?"

Amy suggests that agencies can develop their own harmonized metrics or work directly with retailers to understand their specific methodologies, thereby creating a more unified approach to measurement.

Strategic Partnerships and Future Outlook

The episode concludes with a focus on the importance of strategic partnerships over transactional relationships in the retail media space. Amy advocates for holistic approaches that consider not just media spend but also merchandising, content, and technology to drive comprehensive growth.

Amy Owen [39:24]: "We want to look at total commerce, not just media. This means integrating content, merchandising, and technology to ensure all aspects work together to drive sales."

The hosts and guest agree that continuous adaptation and strategic collaboration are essential for navigating the dynamic and often inconsistent landscape of retail media.

Conclusion

The Digiday Podcast wraps up by reinforcing the ongoing challenges and opportunities within retail media. As brands and agencies grapple with economic uncertainties, regulatory changes, and a rapidly expanding array of retail media networks, the need for clear definitions, standardized measurements, and flexible, strategic partnerships remains paramount.

Kameka McCoy [48:25]: "Constant change is the only consistency in this industry."

Amy echoes this sentiment, emphasizing the enduring evolution of retail media and the necessity for stakeholders to remain agile and collaborative.

Amy Owen [48:32]: "Retail media has been around for decades and continues to evolve. We're always adapting to stay effective."

This episode provides a comprehensive exploration of the current state of retail media, highlighting the complexities and strategic necessities for navigating an increasingly digital and economically volatile environment.