Mondelez VP: Retail Media Can’t Build Brands Alone
Andrew Lederman, Mondelez’s global VP of digital commerce, delivers a sober assessment: retail media networks are powerful for driving conversion at point of purchase, but they do not replace long-term brand building. His message is straightforward for brand marketers and retailers alike. Treat retail media as a targeted commerce tactic, not a single path to equity.
Beyond The Hype: Proving Value & Incrementality
For Lederman the debate is not about who pays for media budgets. It is about clear measurement of return. Current RMN measurement often falls short because it confounds exposure and true incremental sales. Mondelez calls for robust, independent third-party measurement across retailers to establish incrementality, lift, and attribution that brands can trust.
Without consistent, cross-retailer methodologies, budget allocation becomes defensive and inefficient. Brands should prioritize experiments that demonstrate net new sales and factor those results into investment decisions rather than assuming all RMN activity is additive.
The Imperative for Integrated Strategy
Lederman highlights a common friction point: internal silos within retailers between merchandising teams and media teams. An effective retail media program aligns assortment, pricing, promotion, and ad placements so that commercial priorities are shared. Brands should collaborate with retailers on joint objectives, KPIs, and customer journeys to avoid fragmented efforts that dilute impact.
Future Outlook & The Enduring Role of Equity Media
Looking ahead, Lederman expects more agent-driven commerce and social commerce to shape the landscape, but he maintains that not all effective media is commerce media. Equity media remains essential for long-term preference, distribution, and resilience. Short-term RMN tactics can drive trials and conversions, but sustained brand choice comes from sustained brand investment.
Takeaways for practitioners:
- Invest in independent incrementality testing across RMNs.
- Align retailer merchandising and media objectives before scaling programs.
- Balance short-term commerce spends with ongoing equity-led media.
