‘There’s a point of diminishing returns’: Why retail media’s reckoning is said to be on the horizon

With more than 200 retail media networks (and counting) and finite media dollars, agency executives say a retail media reckoning may be on the horizon. Retail media networks (RMNs) have been touted as the industry’s latest silver bullet. But given that glut of competition, agency execs say they’re advising clients to be more calculated with their RMN spend.

In conjunction, retailers are asking for more ad dollars, gobbling up advertiser’s trade/shopper marketing budgets and turning their attention to budgets dedicated to national brand marketing efforts to ultimately make more money. Retailers hope off-site ad opportunities will reposition them from performance marketing channels to one-stop-ad shops.

Retailers are increasingly asking for bigger media spend commitments, agency execs say, and advertisers are grappling with how to keep pace.

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