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Retail media is quickly outpacing other areas of digital advertising and is projected to grow 29% by 2025. Despite this trajectory, retail media is still relatively new compared to traditional digital media and operates like a startup in terms of tech capabilities. Sustained growth will require retail media standardization — creating consistent ways to measure and compare ad performance across retail media networks (RMNs). This standardization will be key for RMNs wanting to understand what’s driving the most value and sales for their business.
In an Interactive Advertising Bureau (IAB) study, 62% of ad buyers pointed to standardization as a top growth challenge. The current ecosystem’s inconsistent standards have prevented effective investment in measurement and limited ad buyer participation. Standardization will be necessary moving forward for effective adoption and trust in these new channels.
This article explores the challenges marketers face without retail media standardization and the collaborative efforts needed to establish consistent measurement standards across the industry.
How much standardization currently exists?
Retail media standardization is limited industry-wide, with each RMN using its own metrics and definitions; what one network calls a “conversion” might be defined differently by another. Some retail companies also sell ad space within siloed, walled-garden shopping environments, which makes it difficult for advertisers to compare performance across platforms. As a result, the current landscape lends itself to inconsistency, campaign measurement complications, and an unclear view of return on investment (ROI) across RMNs.
This fragmentation stems from how retailers have historically developed and managed customer data platforms and e-commerce websites independently, causing disparities in the types and quality of customer data available and the technologies used to manage it. Each retailer uses a unique technology stack and customer experience strategies, which means data is collected, utilized, and integrated into advertising platforms differently.
Why is standardization important?
A 2023 State of Retail Media Survey highlighted the industry’s lack of standardization as a significant obstacle to growth. The Association of National Advertisers also found that advertisers can’t fully take advantage of their retail media investments because of inconsistent measurement practices. Standardized retail media measurement practices are critical for growth. By setting consistent measurement standards across different platforms, it becomes easier for various players to:
- Assess how ads are performing
- See which strategies work across RMNs
- Optimize ad spending
- Make informed decisions
- Extract more value from advertising budgets
Ultimately, standardized metrics are a must for improving transparency, strategic effectiveness, and ROI.
Who is promoting standardization?
We’re seeing a collective push for retail media standardization by several industry stakeholders wanting a more cohesive and effective advertising ecosystem. One of the most recent efforts came from the IAB and the Media Rating Council (MRC). These organizations collaborated with brands, agencies, and RMNs to develop new guidelines for standardized measurement practices and have given the ecosystem a proposed common language for retail media measurement.
These guidelines were released in January 2024 to provide a consistent framework for the following across retail media platforms:
- Audience measurement
- Reporting
- Incrementality
- Transparency
- Viewability
- Ad delivery
- In-store advertising
Microsoft Retail Media, an early adopter of the framework, has experienced greater data transparency, accuracy, privacy, and security, which has benefited advertisers and retailers and advanced Microsoft’s position as a retail media industry leader. Widespread adoption of these guidelines has the potential to drive innovation, attract more advertisers, strengthen collaboration, grow the industry, and improve the consumer experience.
The benefits of industry standardization
A standardized retail media framework for performance measurement can benefit advertisers, retailers, media agencies, and other stakeholders in the ecosystem. Here are some ways each entity stands to benefit.
Benefits for retailers
Standardization makes it easier for retailers to demonstrate their credibility and the value of their retail media program. With uniform measurement across channels and campaigns, they can provide clear, comparable data that reflects their impact, builds trust, and encourages advertiser investment. Better campaign management efficiency also reduces the operational burden, so retailers can focus on improving customer experiences and driving sales.
Experian’s Activity Feed helps you measure performance — and understand how ads impact shopping behavior — by providing you with ad exposures in one environment (web or connected TV) that you can connect to an action in another (in-store purchase). Learn more about Activity Feed and see it in action here.
Benefits for media agencies and marketers
With standardized metrics, advertisers and media agencies have an easy, reliable way to compare metrics and assess the effectiveness of various campaigns across RMNs. This “apples to apples” comparison helps them determine which channels are truly driving better ROI so they can effectively optimize spending.
Standardization also improves collaboration with retailers and leads to more effective campaigns. Consistent guidelines can help teams create, carry out, and optimize retail media strategies and easily compare platform effectiveness.
Benefits for industry stakeholders
Industry stakeholders like technology providers and regulatory bodies can greatly benefit from standardized retail media measurement practices. Consistent measurement provides a common framework that improves transparency and trust among parties. With reliable and comparable metrics, standardization helps everyone speak the same language when it comes to performance evaluation and decision-making. This uniformity facilitates smoother interactions and partnerships between the buy and sell sides, so it’s easier to negotiate and collaborate.
Strategies for implementing retail media standardization
Standardizing measurement will require industry-wide coordination around several strategies, as outlined in best practices frameworks from standardization proponents like IAB/MRC and the Albertson’s Media Collective.
Unify reporting and performance measurement
To address the lack of standardization in performance metrics, RMNs must adopt uniform definitions and calculation methodologies for key metrics. Unified reporting in retail media requires successful stakeholder collaboration to:
- Agree on critical KPIs and reporting metrics like impressions and conversion rates
- Adopt standardized data formats and reporting tools
- Educate stakeholders
- Ensure data quality and compliance
- Continuously improve based on industry feedback
The IAB/MRC framework provides a basis for standardizing metrics for media delivery and engagement, as well as sales and conversions. This consistency helps advertisers compare performance across platforms effectively, enhancing transparency and decision-making.
Standardize product specifications
It’s important for advertisers to have consistent product specifications, as it makes it easier to create and deploy ads across multiple RMNs. To achieve this, RMNs should align ad formats, file sizes, animations, and video specifications with IAB guidelines. Following these standards will help RMNs eliminate compatibility issues, simplify adoption, and save time and resources. It’s also vital for RMNs to maintain flexibility for unique ad formats in order to encourage innovation while still benefiting from standardized specifications.
Introduce third-party verification and disclose capabilities
Introducing third-party verification for ad placement, fraud detection, brand safety, and competitive separation can improve an RMN’s credibility and transparency. By disclosing the third-party providers used and the types of verification offered, RMNs build trust with advertisers and give them the confidence they need to invest.
Additionally, RMNs should disclose their staffing, processes, technology, inventory management, targeting, creative management, and self-service offerings. Transparency in these areas helps advertisers make informed decisions, optimize ad buys, and increase efficiency. Using existing IAB verification and capability disclosure guidelines ensures reliability and a more trustworthy, efficient advertising environment.
Future retail media standardization trends
The future of retail media is poised for significant growth, especially as standardization guidelines are widely adopted and implemented. Here are some trends we expect to see as retail media ad spending grows.
Widespread RMN adoption and spending
Standardization could spur greater RMN spending and drive broad adoption by advertisers who hesitated before due to concerns about metrics and performance comparability.
New partnerships and collaborations
Standardization may lead to new partnerships that weren’t possible before:
- Brands and retailers might team up to blend advertising and sales data for better-targeted campaigns.
- AdTech companies could also partner with multiple retailers to offer unified advertising solutions.
- Retail media networks and analytics firms could collaborate to provide deep insights into consumer behavior and campaign performance.
- Partnerships among retailers, including smaller ones seeking retail media measurement uniformity, may drive further standardization and create new advertising opportunities across product categories with audience overlap.
Ad format innovation
Agreeing on common standards simplifies how ads are measured and understood. Standardization may drive down costs and free up space for more imaginative, engaging ads in the future. For instance, the IAB/MRC’s common language is helping to promote consistency and clarity and fuel innovation across the board.
Incrementality focus
As standardization becomes more widespread, there may be a growing trend toward incrementality measurement, which measures the additional impact of advertising campaigns compared to what would have happened without them. Standardized metrics can help advertisers accurately gauge and optimize campaign effectiveness and maximize their marketing investments.
Growth of cross-platform ad targeting
Standardization may drive the growth of cross-platform ad targeting. With consistent metrics and measurement standards, advertisers will be able to track and compare their ad performance across platforms more accurately. This unified approach will improve ad targeting precision and ensure a consistent impact across RMNs.
Commerce media
Commerce media is changing retail advertising with its focus on verified data and real-time transaction insights, making campaigns more efficient. This shift could push for more uniform measurement standards across platforms and level the playing field. As commerce media gains traction, its emphasis on targeted advertising and ROI measurement might pave the way for universal metrics and clearer guidelines across retail networks.
Where does this leave modern advertisers?
Retail media is still at a crossroads. If standardization doesn’t occur soon, its growth may slow. For now, advertisers are resorting to custom strategies or relying on whichever network they feel is most effective for their products. They are likely to continue investing significantly in retail media, maintaining or increasing spending in the next year.
Although RMNs continue to be challenging without formally recognized standardization guidelines, the proposed IAB/MRC guidelines provide an effective starting point.
Join forces with a strategic RMN partner
RMN success requires overcoming complicated technical hurdles that may exceed non-media business capacities. Managing data complexities, resolving identities, utilizing audience insights, and ensuring precise measurement requires specialized expertise and technologies.
We recently announced a solution tailored for RMNs. This offering enhances RMNs’ strength in first-party shopper data by using Experian’s #1 ranked identity and audience services. Our solution helps RMNs unlock expanded customer insights, enriched audiences for activation, identity resolution for cross-channel audience targeting, and real-time measurement and attribution. This comprehensive solution is designed to help RMNs capture more advertising revenue.
If your organization could benefit from a partner with the requisite technological tools and insights into the retail media landscape, contact us to discover how we can help you achieve RMN success.
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In the digital age, print coupons are dinosaurs, right? Not one bit. In fact, according to Experian Simmons, users of printed coupons — those obtained from newspapers, magazines, mail, etc.—outnumber users of digital coupons by a margin of almost 3-to-1. As of February 14, 2011 (the latest date for which data was available at the time of this post), 68% of all U.S. adults said their household uses print coupons, a number that has remained relatively unchanged during the past five years. 68% of all U.S. adults said their household uses print coupons, a number that has remained relatively unchanged during the past five years. By comparison, Experian Simmons also reports that 22% of all U.S. adults say their household uses digital coupons obtained from email or the Internet. That figure may be lower than the usage reported for any measured type of print coupon, including those handed out in or near stores, but adoption of digital coupons is growing: in 2005, just 12% of American adults used digital coupons. Smartphones adoption will continue to propel digital coupon use to historic highs in the months and years to come. According to an analysis featured in the 2010 U.S. Household Consumer Trend and Benchmark Report, 34% of U.S. iPhone owners use digital coupons compared with just 21% of non-iPhone owners. Interestingly, use of print coupons among iPhone owners doesn’t suffer a bit. In fact, as of February 14, 2011, 68% of iPhone owners reported that their household used print coupons versus 64% of non-iPhone owners, making it obvious that merchants should give their customers an option of using both print and digital coupons. For further consumer insights, download the 2010 U.S. Household Consumer Trend and Benchmark Report, which includes trends on economic outlook by household income, charitable contributions and planned automobile purchases.
Spiders, Rams, Seminoles, Golden Eagles, and Bulldogs. This is one way to describe the diverse collection of Cinderella teams that have advanced to the Sweet 16 in this year's NCAA men's basketball tournament. Four of these teams, the University of Richmond, Virginia Commonwealth University (VCU), Florida State, and Marquette, take their double-digit seeds to the next round in hopes of reaching the Elite 8. Butler, last year's Cinderella story, is seeking a visit to the Final Four for the second straight year. Interestingly, Richmond, VA is the home market for two of the Sweet 16 teams. These are the University of Richmond and VCU. Even more interesting is the fact that these two teams are on a collision course. With wins in the next round they would meet in the Elite 8 for a prized spot in the Final Four. With their surprise victories in the tournament so far, what these teams have in common is being labeled “bracket busters.” A more extensive market analysis uncovers other similarities, plus some notable differences. Here are highlights from profiles of the home market areas for this year's Cinderella teams using data from Experian's Mosaic consumer lifestyle segmentation system and Experian Simmons market research. The following statistics are based on the home markets of the five Cinderella teams. All four Cinderella teams hail from markets with above average interest in college basketball. Milwaukee, home of 11th seeded Marquette, has the highest concentration of adults who are interested in college basketball (28.1%). This is 11 percent relatively higher than percentage for the total U.S. Milwaukee also has the highest percentage of adults who said they watched last year's men's NCAA Division I tournament (17.3%). This is a relative six percent higher than the total U.S. The 10th seeded Florida State Seminoles hail from Tallahassee, which has the second highest percentage of adults with an interest in college basketball (26.9%). Richmond, where both 11th seeded VCU and 12th seeded Richmond are based, is just behind Tallahassee when it comes to the percentage of adults who are interested in college basketball (26.7%). Indianapolis has the lowest percent of residents who are interested in college basketball (26.3%), but that's still a relative four percent higher than the U.S. as a whole. Although interest should be very high this year, Richmond and Indianapolis (15.8% each) have the lowest percentage of adults who watched last year's tournament. Cinderella Team Market Snapshots Richmond, VA Home market of: Richmond Spiders, VCU Rams Sweet 16 opponents: Kansas, Florida State The top two segments in Richmond representing 30% of the market's households are: Metro Minority Communities (18.1%) comprised of married couples and single-parent minorities earning above average incomes from a mix of service industry and white-collar jobs in transportation, health care, education, and public administration. Urban Commuter Families (11.5%) comprised of upscale, college educated Baby Boomer families and couples living in single detached homes in city neighborhoods on the metropolitan fringe. Other interesting facts: Most over-represented segment is Metro Minority Communities (3.8 times the national average) Percent of adults with interest in college basketball is 26.7% Percent of adults who watched last year's men's college basketball tournament is 15.8% Tallahassee, FL Home market of: Florida State Seminoles Sweet 16 opponent: VCU Rams Similar to Richmond, the top two segments in Tallahassee are Metro Minority Communities (14.8%) and Urban Commuter Families (6.9%). The two segments that account for the next highest share of households are: Struggling City Centers (6.7%) comprised of young, single and single-parent minority renters living in low-income city neighborhoods. Rural Southern Living (6.5%) comprised of lower-income blue-collar couples and families living in sparsely settled mobile home communities. Other interesting facts: Most over-represented market segment is College Town Communities (6.2 times the national average) Percent of adults with interest in college basketball is 26.9% Percent of adults who watched last year's men's college basketball tournament is 16.8% Milwaukee, WI Home market of: Marquette Golden Eagles Sweet 16 opponent: North Carolina Tarheels The top segment in Milwaukee representing 11.2% of households is Urban Commuter Families (as described above). The two segments that account for the next highest share of households are: Small-town Success (10.5%) comprised of white collar, college educated, middle-aged working couples living in newly developed subdivisions outside the nation's beltways. Steadfast Conservative (9.3%) comprised of high-school educated mature singles and couples living in middle-class urban blue-collar neighborhoods. Other interesting facts: Most over-represented market segment is Successful Suburbia (3.6 times the national average) Percent of adults with interest in college basketball is 28.1% Percent of adults who watched last year's men's college basketball tournament is 17.3% Indianapolis, IN Home market of: Butler Bulldogs Sweet 16 opponent: Wisconsin Badgers There are four equal size segments that account for just over 30% of Indianapolis households. These include Steadfast Conservative (8.9%), Urban Commuter Families (7.8%), and Small-town Success (7.1%). All three of these segments are also among the top five in Richmond, Tallahassee, and Milwaukee. What makes Indianapolis unique from the other three markets is a higher percentage of New Suburbia Families (7.2%). These are young, affluent working couples with pre-school children concentrated in fast-growing, metro fringe communities. Other interesting facts: Most over-represented market segment is Successful Suburbia (2.8 times the national average) Percent of adults with interest in college basketball is 26.3% Percent of adults who watched last year's men's college basketball tournament is 15.8%
Tournament play begins this week in the 2011 NCAA Men's Division I Basketball Tournament, which means office productivity is likely to take a hit as fans jump online to watch live streams of games being played during working hours. With online viewing options expanded to mobile and other digital platforms this year, fans have more avenues than ever to get their March Madness fix. In fact, according to a recent estimate by Challenger, Gray & Christmas, total online tournament viewership during work hours is likely to reach 8.4 million hours during this year's tournament. In this latest installment of Experian Marketing Services' continuing March Madness consumer coverage, we'll profile the work life of online game streamers. Is there one down the hall or in the next cube? The answer is almost certainly “yes,” but the “who” may surprise you. According to Experian Simmons, just over 5% of all U.S. adults and nearly a quarter of adult NCAA men's tournament viewers (24%) qualify as likely online game streamers. For the purpose of this analysis, likely online game streamers is defined as those U.S. adults who watched the last NCAA men's basketball tournament who also sought out sports information online or watched online video in the last 30 days. These likely online game streamers must have also visited either cbssports.com or espn.com in the last 30 days. Fully 79% of likely online game streamers are employed either full-or or part-time, with 59% working 40 or more hours a week. Department managers and IT staff-have reason to be concerned about a loss in productivity during March Madness: fully 79% of likely online game streamers are employed either full-or or part-time, with 59% working 40 or more hours a week. Don't be so quick to suspect that colleague who always shows up late and goes home early as a game streamer. A safer bet would be the guy who's always at his desk when you get in and still there when you head out. In fact, one-in-ten adults who work more than 40 hours a week (11%) are likely online game streamers, meaning they're more than twice as likely as the average adult to be checking out the game online. Remote employees who work at home often get a bad rap with office “suits” sometimes assuming their pajama-clad colleagues fall prey to distractions. Actually though, Americans who work from home are no more or less likely to be likely online streamers than those who don't work from home. Likewise, the self-employed are no more or less likely to be online game streamers than laborers who work for “the man.” Interestingly, Experian Simmons found a direct correlation between company size and a worker's chance of being a likely online game streamer. Specifically: Those who work in companies with fewer than 100 employees are 17% less likely than the average American worker to be likely online game streamers. Those who work in companies with between 100 and 499 employees are just two percent less likely than average to be likely streamers while those employed by companies with between 500 and 999 employees are eight percent more likely to be online game streamers. Employees of companies with 1,000 or more employees are the most likely culprits with the group on average being 17% more likely to be likely online game streamers. As such, it's no surprise that Fortune 500 companies are the most at risk of having offices full of online streamers during March Madness. Employees of Fortune 500 companies are fully 66% more likely to be online game streamers than those who Americans employed by a non-Fortune 500 company. Finally, the best insight into whether your office mates are streaming basketball games online instead of working is by looking at their paycheck (not that we encourage that of course). Specifically, as income rises, so does one's chance of being an online game streamer: Employed Americans who personally earn less than $25,000 annually are the least likely to be online game streamers, scoring 50% below average on this metric. Those who earn between $25,000 and $49,999 are only 15% less likely to be game streamers. If you know or suspect that your colleague earns upwards of $50,000 a year, it's a good idea to keep an eye on them for the rest of the month; workers with incomes between $50,000 and $74,999 are 33% more likely than average to be likely game streamers and those who earn between $75,000 and $99,999 are 75% more likely to be likely game streamers. Your colleagues earning $100,000 or more annually are the most likely to be streaming online, with those personally taking home between $100,000 and $149,000 being a whopping 164% more likely than the average employee to be streaming games online. And those earning $150,000 or more annually being fully 176% more likely to be online game streamers. Moreover, one-in-five adults who earn $150,000 a year or more fall into our likely online game streamers segment compared with just 5% of all U.S. adults. The first match-up to be played during the traditional workday tips off at 12:15 EDT on Thursday March 17th when West Virginia takes on the winner of the second round-one play-in game. Armed with this information, you should be able to catch-or join-your office's online game streamers in the act.