THE RMN ASCENDANT GROUP: NAVIGATING THE FUTURE OF RETAIL MEDIA
WHAT IS THE RMN ASCENDANT GROUP?
In the ever-evolving world of Retail Media Networks (RMNs), an exclusive gathering known as the RMN Ascendant Group has emerged. This invite-only network comprises the crème de la crème of RMN leaders, agencies, and tech companies, intentionally kept small with around 75 members. These professionals convene twice a year to delve into the industry’s most pressing issues. Earlier this year, Dave Glaza, CEO of DIGITS, had the honor of participating in the inaugural event, which took place in Manhattan, followed by a subsequent session in Palo Alto, California.
THE KEY TAKEAWAYS FROM DIGITS
Here are some critical insights that emerged from the RMN Ascendant Group Boot Camp, which shed light on the RMN landscape:
THE RMN INDUSTRY IS POISED FOR TREMENDOUS GROWTH
The RMN industry has witnessed significant growth, yet it anticipates even more unprecedented expansion on the horizon. RMN Wave 3 is on the rise, and three key statistics were repeatedly emphasized:
- The RMN industry currently generates $42 billion in revenue, and it’s projected to reach an aggregate revenue of $100 billion within a few years.
- A staggering 90% of retailers are planning to establish or launch an RMN within the next two years.
- By 2030, a remarkable 50% of retailer profits are expected to stem from secondary sources like media.
THE IMPERATIVE OF A LOYAL CUSTOMER BASE
The number one factor contributing to the success of any RMN is the presence of a loyal customer base. While this may sound fundamental, it’s a critical component that should not be overlooked. The core business drives both customers and data, and it’s more advantageous to cater to a niche, dedicated customer base that’s truly valued rather than pursuing a broader, less loyal audience. This principle underscores the need for media companies to have a compelling reason to engage with your specific audience.
MEDIA AGENCIES’ DILEMMA IN A MULTI-FACETED RMN ENVIRONMENT
Media agencies are grappling with the challenges of operating in the multi-faceted world of RMNs. A recurring sentiment at the conference was, “We don’t need another RMN.” This situation has resulted in a segmentation in operations. Rather than relying on a single DSP (Demand-Side Platform), media agencies are now utilizing a combination of retailer-managed services, third-party providers like DIGITS, and self-service programmatic platforms such as Trade Desk. This division has led to concerns regarding an oversaturation of RMNs. Whether this is merely a result of agencies finding their roles more challenging or if it genuinely harms brands and the industry remains a topic of debate.
THE INEVITABILITY OF TECH AND PROCESS CONSOLIDATION
Tech and process consolidation are on the horizon. Various platforms like Pacvue, Skai, and Flywheel have already developed consolidation engines for paid search. It’s only a matter of time before a solution emerges to consolidate managed services, display, offsite marketing, and more. Potential candidates include established players like Criteo or Citrus, or perhaps a new entrant. The challenges voiced by agencies and brands indicate that opportunities are ripe for those who can streamline these processes.
THE RISE OF AI IN CREATIVE CAMPAIGNS
Artificial Intelligence (AI) is about to revolutionize creative campaigns. While today’s campaigns typically encompass one to four creative versions, the future holds the promise of true personalization with hundreds or even thousands of customized versions, tailored to individual customer preferences. This is where AI comes into play. AI can generate creatives and align them with customers, promising to propel offsite personalization light years ahead of its current state within the next two years.
As the Retail Media Network landscape continues to evolve, attendees at the RMN Ascendant Group Boot Camp have gleaned crucial insights into this dynamic industry. The future of retail media is rife with promise, and those who adapt and innovate stand to benefit from this exciting transformation. At DIGITS, we are committed to leading the way and driving success in this ever-changing landscape.
CONTACT DIGITS
Are you ready to explore the future of Retail Media Networks and stay ahead of the curve? Reach out to DIGITS and join us on this journey towards retail media excellence.
Dave Glaza, Founder & CEO of DIGITS , remains committed to bringing digital capabilities to physical stores! Join us in this quest for omnichannel marketing on LinkedIn:
https://www.linkedin.com/in/davidglaza/
Follow DIGITS on LinkedIn:
https://www.linkedin.com/company/digits-agency/
