When you think of “retail media”, it would be tempting to picture the big companies.
Amazon, Target, Walmart, Boots and others are amongst the major retailers to have turned their virtual shelf space into ad inventory, while big brands from the major suppliers are often amongst the ones doing the deals.
But, in this video interview with industry analyst Joanna O’Connell for Beet.TV at ShopTalk 2023, Jagdeep Wadhwani, Director of Ad Sales, Shipt, says smaller upstarts, too, have a big role to play in t evolution of retail media.
Fastest growing segment: Small brands
Wadhwani notes that while the grocery shelf is dominated by large heritage brands, a study by IRI and BCG reveals that “the fastest growing segment on the shelf is actually small brands”.
For small brands looking to succeed in this landscape, Wadhwani suggests focusing on “showing up brilliantly” by ensuring distribution on the shelf and understanding their positioning in search results.
“Search is the cornerstone of a commerce strategy but, as we develop and innovate with new opportunities, display and promotions and offsite media, we start to bring that together,” he says.
He believes that small brands can experience “incredible success in driving top line sales and increasing their category share”.
Changing consumer behavior and future opportunities
Discussing the future of retail media and e-commerce, Wadhwani is excited to see “how certain behaviors really start to become mainstream.”
He points out that only about 15% of total grocery sales are currently same-day delivery, and is eager to see how that number evolves. “I can’t wait to see where that goes, as it just becomes ubiquitous with grocery shopping and how Shipt could play a role in that,” he says.
Acknowledging that consumer expectations are constantly shifting, Wadhwani recognizes that “the way a suburban customer shops may be different from the way a millennial in a big city shops.” He concludes, “All of us here are trying to figure that out.”
To the door
Shipt is a retail technology company and same-day delivery service founded in 2014 by Bill Smith.
The company partners with retailers to offer a personalized shopping experience, delivering items from various stores directly to customers’ doors through a network of shoppers.
In December 2017, Target Corporation announced its acquisition of Shipt for $550 million.
You are watching ‘Inside Commerce: Retail Media & What’s Next? Reports from ShopTalk 2023,’ a Beet.TV Leadership Series presented by Criteo. For more videos from this series, please visit this page.