The Convenience Technology Vision Group (CTVG) released its newest Vision Report tackling retail media networks (RMNs), getting ahead of one of the hottest topics in retail. The report features an executive summary of the June 14 conversation, the full meeting transcript, and additional resources for further exploration of the topic.

CTVG’s June 14, 2024 quarterly virtual meeting was facilitated by Ed Collupy and featured guest speakers Kevin Struthers, chief product officer and co-founder at Axonet and Doug Baker, vice president of industry relations at FMI (Food Marketing Institute). Their presentation provided an overview of retail media networks and considerations and challenges for operating such programs. CTVG members had the opportunity to share their experiences and perspectives, leading the way in bringing industry voices together on this hot topic.

During the discussion, the group explored the challenges of resource allocation, technology integration, and strategic management to fully realize the benefits of RMNs. While it was identified that large retailers are most apt to realize the benefits of a complete RMN, agencies or conglomerates may be a path forward for those

smaller companies unable to work in-house. The robust discussion underscored the importance of strategic and financial planning, data integration, and ensuring customer relevance. Key takeaways in the report include:

 

Customer Experience Matters

Members considered the shift from third-party media to retailers managing their own content for better brand control and the effectiveness of different promotional methods. Personalized and targeted advertising was emphasized to maintain consumer engagement and loyalty. Concerns were also raised about outdated ads and the challenge of balancing marketing costs while protecting customer relationships, especially with the increasing direct reach of CPG brands to consumers.

Scott Smith, senior director of IT at Parker’s is on board with RMNs as the path to the future saying, “The one-to-one marketing that is relevant to our consumers is the next generation of retail media.”

 

Can Small Operators Scale RMNs?

The discussion highlighted the challenges that smaller and independent retailers face in leveraging retail media. It was suggested that the industry could form cooperatives to achieve the necessary scale to compete with major retailers and attract CPG brands by pooling resources and data. Concerns were raised about relying on third-party providers for advertising, with worries about losing control over branding.

Eastern Petroleum Corporation’s VP of Technology Bill Ridge, shared that “It scares me a little bit about letting our vendor take that advertising and allowing them to kind of do something where I’m more worried about our branding and possibly getting that rolling with our media.”

 

Resource Complexities

CTVG members highlighted resource constraints in marketing and IT departments. Successful implementation requires a strategic, cross-functional approach integrating marketing and IT, along with leveraging AI for efficiency.

Conexxus Board of Advisors Vice Chair Robert Hampton, VP technology services and innovation for Jacksons Food Stores said, “What I’ve found personally is it’s not so much a technology issue and it’s not so much a CPG or somebody wanting to buy the space, it’s do you have the person in marketing, the intermediary to manage all of this for you and to make sure you’ve got the proof of play, data getting out, that you’ve got the right things running at the right time.”

 

Lightning Round Updates From Past Meetings

The meeting also revisited previous CTVG discussions on AI and fighting for tomorrow’s customers. During a rapid-fire round, CTVG Members discussed the application and challenges of AI in retail, highlighting its potential for personalization, price optimization, and solving industry problems. Additionally, members noted the need to balance innovative technologies with practical implementation while competing with larger retailers and QSRs.

To download this and other Vision Group Network Vision Reports, please CLICK HERE

 

About Convenience Technology Vision Group

The Convenience Technology Vision Group (CTVG) brings together invited leaders for quarterly virtual meetings to discuss technology issues impacting the convenience channel. The group addresses trends, challenges and solutions in AI, computer vision, alternative payments, robotics, IoT, blockchain, cybersecurity, data analysis, EVs, food tech, frictionless checkout, digital experiences, workforce management and more. The group is committed to sharing its views and perspectives in order to advance the convenience retailing and mobility industry. CTVG operates under the Vision Group Network, which gathers the collective knowledge and ideas of its members to create a legacy of sharing within the retail community. For more information about CTVG, visit tvgsolutions.com/CTVG or contact us.

 

About Vision Group Network

The Vision Group Network (VGN) brings together, in virtual group meetings, great minds and leaders from all parts of the retail and foodservice industries to create a knowledge base consisting of experience and innovative ideas. The mixture of perspectives, real world experiences and collaboration during VGN’s Convenience Leaders Vision Group (CLVG), Convenience Technology Vision Group (CTVG) and The Vision Group (TVG) meetings provide valuable insights and actionable programs that allow its members to maximize their business opportunities. Electric Vehicles Vision Group (evVG) is launching November 2024.

 

To learn more about the Vision Group Network and to join the mailing list for all Vision Reports visit tvgsolutions.com.