Retail media exceeds benchmarks on brand suitability, fraud, and engagement, potentially fueling higher-performing ads.
DoubleVerify (DV) announced a preview of findings from its eighth annual global insights report, which analyses media quality and performance trends across more than one trillion impressions from over 2,000 brands in 100 markets. The proprietary research uncovered the opportunities of and challenges for retail media networks, which continued to gain popularity with their rich consumer data and ability to reach audiences at the point of purchase, especially as cookie deprecation approaches.
A retail media network (RMN) is an advertising channel offered by a retailer that leverages their first-party consumer data to target audiences on their own properties and extended networks. RMNs combine two types of inventory for advertisers: owned & operated (O&O)—ads that run on the retailer’s own sites or apps; and audience extension—ads that use the retailer’s first-party data to reach shoppers across the web.
Brand Suitability & Ad Fraud
DV’s findings reveal that RMNs over-index for media quality in terms of brand suitability and ad fraud, with fraud rates nearly one-third (31 per cent) lower than the DV overall fraud benchmark and brand suitability violations lower by 10 per cent than the DV overall brand suitability benchmark.
“As retail media investments surge, these are encouraging numbers,” said Mark Zagorski, CEO of DoubleVerify. “In addition to being rich in first-party data, RMNs see lower fraud and brand suitability violations than do other environments. Ultimately, better media quality equates to better ad performance”.
Viewability & Engagement
While RMNs saw better than average brand suitability and fraud rates, viewability across RMNs is 8 per cent lower than the DV viewability benchmark. Specifically, RMN O&O inventory had an average viewable rate of just 36 per cent, while RMN audience extension inventory scored considerably higher, at 73 per cent. This discrepancy reflects the strategic focus of e-commerce platforms, which prioritise enhancing the shopping experience and maximising conversions, with advertising viewability optimisation often taking a backseat.
Regardless, the low viewability score of O&O RMN inventory should not be a cause for concern. DV discovered that O&O inventory effectively targets shoppers when they are most likely to engage, resulting in engagement rates 183 per cent higher than DV’s attention baseline.
“The distinct roles of audience extension and O&O inventory in RMNs necessitate a nuanced understanding of KPIs,” added Zagorski. “While audience extension ads boast higher viewability and exposure, it’s important not to overlook the high user engagement profile of O&O inventory”.
The report employed DV technology to analyse over one trillion impressions, both pre and post-bid, and offered a detailed market-by-market analysis for North America, LATAM, EMEA, and APAC. The report also covered video and display impressions from January to December 2023 across desktop, mobile web, mobile app, and connected TV (CTV). The study also included a global survey conducted by Sapio, polling 1,000 advertisers across North America, LATAM, EMEA, and APAC.
