90% marketplace traffic generated by mobile users
In-store retail media’s ad spend of $240 million in 2023 will triple by 2027.
Over 90 percent of marketplace traffic and purchases are generated by mobile users, contributing to the mobile usage and social media traffic in retail media.
Laure De Vienne, Vice President of Digital Media at Flywheel Southeast Asia, highlighted that the global retail media market is set to increase by 60 percent, reaching $160 billion by 2027.
According to De Vienne, with over 90 percent of marketplace traffic and purchases generated by mobile users, the impact of mobile devices on consumer shopping behaviours and preferences with Southeast Asia is more pronounced.
"The growth of social comments and consumer preference for video contents is more dynamic," De Vienne added, saying that retailers are increasingly leveraging social media platforms to engage with their audience, employing strategies that resonate with the digital-savvy consumer base.
Looking ahead to 2024, De Vienne identified three top trends in retail media including the evolution of live commerce, marked by the use of live streaming for product demonstrations and interactive shopping experiences.
"Live commerce evolution, particularly in Southeast Asia, with platforms like TikTok showing aggressive growth, is contributing to the trend of social commerce," she explained.
Secondly, marketing automation is emerging as a key trend, allowing brands to streamline and optimise their marketing efforts. This includes automated campaigns and personalised messaging to drive more efficient customer communication. The investment in marketing technologies and automation capabilities is also on the rise.
Influencer marketing continues to be a strong trend, as De Vienne cited, especially in markets with heavy social media usage like the Philippines.
"Collaborations with local influencers remain vital for brands to engage their audience," she emphasised. The focus on sustainability and consumer-centric strategies is also shaping the retail media landscape.
However, the challenge of data management in retail media cannot be overlooked. De Vienne acknowledged, "Real-time insights are essential, and slow data processing can be a bottleneck."
She explained that the inconsistency in data across different channels in the region leads to fragmented customer experiences. To address this, she suggests implementing technologies for real-time analytics and investing in scalable infrastructures. Additionally, strategies for cross-channel data consistency are crucial to ensure synchronised customer data across online and offline touchpoints.