Digital Commerce Revolutionized: Retail Media Advertising as Utility

Retail media is hard, but worth it. Its the third revolution in digital advertising and in almost every way, it's more interesting than the previous two. It's advertising as utility, helping consumers find what they are looking for. At the end of October, Omnicom, a global media, marketing and communications holding company, acquired Flywheel for $835 million to serve advertising across more than 400 digital marketplaces. This signals the recognition of the importance of digital commerce and retail media advertising by the big holding companies, who have been playing catch-up. They now need to demonstrate to clients that they are ready to support marketing through digital channels.

The acquisition is part of an undeniable trend of money moving into the retail media market, as it is the fastest growing segment of all digital ad spending. In the same week as the Flywheel acquisition, performance marketing platform Skai released data showing a 10% quarter-on-quarter growth in retail media spend, with a 34% year-on-year increase.

Retail media is not only about advertising, but also creative, SEO, inventory management, refund management, pricing, and more. This means agencies and marketers have to become better at the organic part of retail media, in order to move the needle on revenue and EBITDA. With the Flywheel acquisition, the other players in the market that are still sub-scale or just getting to scale will have an exciting time, as the other holding companies have to move.

Retail media is hard, but worth it. It's advertising as utility, helping consumers find what they are looking for. The acquisition of Flywheel by Omnicom signals the big holding companies' recognition of the importance of digital commerce and retail media advertising. It's an undeniable trend, with retail media being the fastest growing segment of digital ad spending, and with data showing a 10% quarter-on-quarter growth in spend, and a 34% year-on-year increase. This trend is not only about advertising, but also creative, SEO, inventory management, refund management, pricing, and more, which means agencies and marketers have to become better at the organic part of retail media. With the Flywheel acquisition, the other players in the market will have an exciting time, as the other holding companies have to move.

Originally reported by Martech: https://martech.org/omnicoms-flywheel-acquisition-signals-the-start-of-a-revolution/
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