About three-quarters of chief marketers expect to increase their digital retail media budget in the coming year, a new survey has revealed.
The poll of senior marketers from across the globe by Campaign found 47 per cent said they would be increasing their budget by more than 25 per cent, while just under a third (29 per cent) said they expected to see it rise by less than 25 per cent. A total of 24 per cent said there would be “no change” to their level of investment.
When asked within which part of the marketing budget digital retail media falls, the largest proportion of respondents said advertising, followed by trade and promotional sales, CRM and “other” budgets.
Overall, digital retail media is either “very important” or “somewhat important” to the marketing agenda for three-quarters of marketers. The remainder said they were not involved in digital retail media.
The survey forms part of a wider analysis of senior marketers’ priorities in the coming year, including spending on digital, the importance of data and strategy focus.
The full results and commentary are available exclusively for subscribers to The Knowledge in Campaign’s annual CMO Outlook report, the first part of which is published today.
Speaking to Campaign about the survey findings on digital retail media, Ali Jones, Co-op’s customer director, said that brands’ external advertising budgets would likely be pulled back to increase spending on digital retail media, which effectively comes under “shopper marketing”.
She added: “I am hearing that those lines are blurring, that retail media – and retail digital media – is providing an option that complements, or replaces in some respect, some of the external advertising. So some of that money can go into what was traditionally a ‘shopper marketing’ budget.”
Morrisons is increasing the advertising space it offers not only in physical stores but also across more digital channels, including through its Morrisons on Amazon service and rapid delivery partners.
Last year Tesco expanded its advertising inventory across its own platforms and offering brands audience insights from its 20-million-person Clubcard customer loyalty database.
The CMO Outlook survey was conducted in partnership with R3 between May and June, with 21 global marketers spanning the financial, retail, technology, FMCG, pharmaceutical and electronics sectors taking part.