Retail media is growing like a weed – but like a weed, it needs taming.
To begin that process, Albertsons Media Collective, the retail media network (RMN) operated by food and drug retailer Albertsons, released a working draft of a retail media standardization framework on Thursday.
The framework issues general recommendations, such as adhering to the IAB’s guidelines (many RMNs do not meet IAB standards), developing standards for retail media formats and measurement, and working with third-party verification providers for areas like brand safety and fraud (again, many RMNs do not support third-party verification tech that would be standard for most open web ads).
“The white paper is the beginning of the conversation. It’s not meant to be a stone tablet,” said Kristi Argyilan, Albertsons’ SVP of retail media.
Standard, but unique
Of course, not everything can – or should – be standardized.
RMNs will still have their own commercial models and distinct ways of bringing first-party data, audiences and media to market, Argyilan said. The same goes for ad formats related to certain RMNs, such as sponsored brand videos and digital in-store experiences.
But for everything else, please get in line.
RMNs have some foundational issues that stem from going their own way until now. But as long as they can come together and figure out a set of standards, Argyilan said, they’re “poised for that next big wave of growth.”
Catalyzing collaboration
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Consistent RMN standards are needed for retailers to realize their growth potential, according to Argyilan. In talking to Albertsons’ CPG clients, Argyilan found advertisers and agencies sink substantial time and money (including hiring more staff) into decoding the mystery of their scattershot RMN campaigns. Metrics like click-through rate or RoAS and info about audience demos could vary wildly from one RMN to another.
Left to their own devices, RMNs often function as mini walled gardens with no transparency into measurement or performance, beyond an aggregated attribution report provided by the platform.
The outcry for much-needed retail media standards isn’t new. The ANA, IAB, Unilever and more have been vocal about RMNs’ limitations and the need for reliable measurement standards.
Retail media also isn’t the first channel to undergo rapid growth and give rise to a hodgepodge of people who play by their own rules, leading to a call for universal standards.
“Programmatic went through the same thing in the ’90s. Digital advertising overall went through the same thing,” Argyilan said. Organizations like the IAB sprang up to set universal standards for web ads. It’s what the Albertsons framework could be for retail media.
Notably, Albertsons isn’t competing with the IAB. The framework complements the IAB and MRC’s work with the Retail Media Measurement Guide Working Group, according to Argyilan. “It’s a road map meant to support everything that they’re doing so the IAB can move faster.”
