The insight: Some ad agencies are pushing their clients to be more strategic with their retail media spending due to concerns about the ballooning number of retail media networks (RMNs), high CPMs, and the lack of standardization, per Digiday.
The note of caution comes as retailers push for a greater share of marketing budgets—particularly dollars set aside for national media campaigns—in an attempt to entrench themselves firmly in the advertising landscape.
Growing pains: The biggest concern among agencies is the question of whether spending more with a RMN results in higher sales and increased brand awareness. One anonymous executive told Digiday that “continuing to invest in sponsored products does not always translate to incremental sales,” adding that “there’s a point of diminishing returns.”
