Retail embraces new technology and promises to become an ad platform by 2030

According to DHL's Global Online Shopper Trends Report 2024, sales made by social networks, the so-called social commerce, are expected to reach the US$8.5 trillion mark by 2030. Data like this shows that technological transformation has become essential for retail revenues, which promises to become the largest ad platform on the market in the coming years.

According to Bruno Belardo's, Vice President of Sales US Media, a leading media solutions hub in Latin America, entering the digital world represents a great opportunity for retailers.“It is an industry that has a deep knowledge of consumer behavior and, if it aligns with personalized advertising experiences with proven results, has the chance to be the protagonist of”, he says.

New investmentsMany retailers today have invested in big data and artificial intelligence (AI) to process and segment customer data in real time so that they can develop advertising campaigns that reach their target audience.In addition, there is a strong movement in the industry to incorporate new technological tools into processes that respect consumer privacy, in compliance with regulations such as the General Law on Personal Data Protection (LGPD).

Belardo adds that seasonal dates like Black Friday have also motivated companies to invest in qualified and efficient media strategies, since they have a high potential for traffic and transaction volume. A study by Wake and Opinion Box proves this scenario, revealing that e-commerce is the preferred channel of 58.2% of shoppers during the period, with marketplaces (47.8%) and applications (44.3%) coming just behind. 

“A Black Friday is a perfect time to show advertisers the Return on Investment (ROI) that digital advertising can have for” retail, says the executive.“If retailers measure results and track the complete purchase funnel, from start to finish, every click of users can be the source of an immediate sale”, he adds.

Retail media focusThe rise of retail as an ad platform is also driving its diversification of advertising channels, which can be seen primarily with the warming of the retail media field.Omdia points out that the strategy in question has helped global industry representatives reach US$123 billion in revenue between 2019 and 2023, a figure that is expected to increase to US$293 billion by 2029. 

Belardo explains that the growth of the format is due to its ability to engage consumers in various ways, whether on websites and apps or on external channels such as media Out-of-Home (OOH) and Connected TV (CTV). “Retailers are realizing that the integration between the physical and the digital can lead to more immersive and disruptive campaigns. The result of these experiences?The expansion of the reach, relevance and accuracy of their advertising strategies”, he concludes.