The retail media and marketplace landscape is evolving rapidly, driven by factors like the rise of e-commerce, the increasing adoption of connected devices, and the ongoing shift towards a more personalized and data-driven shopping experience. As we look ahead to 2024, here are five key predictions for this dynamic and exciting space:
5 Retail Media & Marketplace Predictions For 2024
1. Continued Growth of Retail Media Networks:
Retail media networks, which allow brands to advertise directly on the websites and apps of major retailers, are expected to experience continued explosive growth in 2024. According to Insider Intelligence, retail media ad spend in the US alone is projected to reach a staggering $59.61 billion by the end of the year, representing an increase of more than 20% year-over-year. This growth is being fueled by a number of factors, including the vast amount of data that retailers collect on their customers, the increasing effectiveness of programmatic advertising platforms, and the growing recognition of the value that retail media can provide to brands in terms of reaching targeted audiences and driving sales.
2. Emergence of New Marketplace Players:
The traditional marketplace landscape, dominated by players like Amazon and eBay, is facing increasing competition from a new wave of entrants. These new players are often focused on specific niches or cater to particular demographics, and they are leveraging innovative technologies and business models to differentiate themselves from the established players. For example, social commerce platforms like Instagram and TikTok are increasingly becoming marketplaces in their own right, allowing brands to sell directly to consumers through their social media feeds. In 2024, we can expect to see even more new marketplace players emerge, offering unique shopping experiences and challenging the dominance of the existing giants.
3. Focus on Privacy and First-Party Data:
With the increasing scrutiny of third-party data collection practices, retailers and marketplaces are placing a greater emphasis on collecting and leveraging first-party data. This data, which is collected directly from customers through their interactions with the retailer or marketplace, is much more valuable and privacy-compliant than third-party data. In 2024, we can expect to see retailers and marketplaces invest heavily in building out their first-party data infrastructure and capabilities. They will also be looking for new and innovative ways to use this data to personalize the shopping experience, target advertising more effectively, and improve customer loyalty.
4. Integration of Physical and Digital Stores:
The lines between physical and digital retail are continuing to blur. In 2024, we can expect to see even more retailers integrate online and offline experiences. This could include things like using in-store beacons to trigger targeted ads on customers’ smartphones, allowing customers to order online items for pickup in store, or even using virtual reality (VR) to allow customers to virtually try on clothes or tour products before they buy them. These integrated experiences will create a more seamless and convenient shopping experience for customers, and they will also help retailers to collect valuable data that can be used to personalize the shopping experience and drive sales.
5. Rise of Voice Commerce and Conversational AI:
Voice commerce, which allows customers to shop using voice commands, is still in its early stages, but it is expected to grow rapidly in the coming years. According to Juniper Research, global voice commerce transactions are expected to reach $80 billion by 2024. This growth is being driven by the increasing popularity of smart speakers and voice assistants like Amazon Alexa and Google Assistant. In 2024, we can expect to see retailers and marketplaces invest more in developing voice commerce capabilities, and we can also expect to see the development of more sophisticated conversational AI technologies that can provide customers with a more natural and engaging shopping experience.
These are just a few of the predictions for the retail media and marketplace landscape in 2024. It is an exciting time to be in this space, and it will be interesting to see how these trends continue to evolve in the months and years to come.
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