Listening Pleasures: Analyst Andrew Lipsman explores the future of Retail Media
I recently listened to a fascinating episode of the BRAVE COMMERCE podcast featuring analyst and consultant Andrew Lipsman. In the episode, Lipsman chats with hosts Rachel Tipograph and Sarah Hofstedter about the current state and future trajectory of retail media.
As someone who works in ecommerce and is always trying to stay on top of the latest trends, I found Lipsman’s insights incredibly valuable. A few key points that stood out to me:
The shift from Retail Media 1.0 to 2.0
Lipsman sees 2024 as an pivotal inflection point marking the transition from what he calls “retail media 1.0” to “retail media 2.0”. While 1.0 was dominated by search ads, especially on Amazon, 2.0 will be defined by a “shift into off-site ads” and the “emergence of in-store retail media.”
“2024 is when some other aspects of retail media really start to kick off. The 2.0 era is what I call moving up the funnel and into the store.”
The rise of streaming TV Ads
One specific area Lipsman sees exploding in 2024 is streaming TV advertising powered by retail media data:
“eMarketer just came out with their latest forecast that has streaming TV powered by retail media going from 0.8 billion in 2023 to 3.6 billion [in 2024]. So that’s a pretty big step change in one year.”
As more retailers connect their first-party data to streaming TV ad inventory, CPG brands in particular will have exciting new opportunities to reach shoppers.
Product sampling as media?
Another intriguing point Lipsman makes is around thinking of product sampling as a highly effective but often overlooked form of retail media:
“I think of [product sampling] as the most effective form of media because you actually get to try the product…I’m really excited about what attribution is going to do for product sampling. I think it becomes a really critical piece to the full funnel retail media strategy.”
As retail media networks get more sophisticated with their data and measurement capabilities, CPG brands may be able to close the loop between samples and sales in powerful new ways.
Retailers vs Platforms
Finally, Lipsman digs into how the deprecation of third-party cookies will impact the evolving frenemy dynamic between retailers and platforms like Facebook and Google.
As cookies go away and platform targeting gets less precise, Lipsman expects retail media data, with its direct consumer relationships and purchase data, to become the “better data” powering more and more digital ad buys. It will be fascinating to watch how this shift impacts the balance of power.
This is just a small taste of the many insights Lipsman shares. If you work in retail, ecommerce, advertising or a related field, I highly recommend giving the full episode a listen. It’s well worth 45 minutes of your time to hear one of the sharpest minds in the industry share where he thinks retail media is heading.
You can find the full episode: “The Future of Retail Media with Andrew Lipsman”
