Data & Collaboration are Key
Recent research from ISBA, the UK advertisers’ body, calls on retailers to prioritise transparency and collaboration with suppliers as their retail media networks expand. With the UK digital retail media market forecasted to reach £5 billion by the end of this year, transparency around data and media operations has become an increasing focus for brands and marketers alike.
The study recommends retailers establish shared governance frameworks and invest in specialists to govern retail media effectively. Providing suppliers with access to more comprehensive data is critical to help advertisers assess the performance and value of their investments in these platforms. Retailers are encouraged to be selective when choosing media partners, acknowledging their emerging role not just as merchants but also as media owners. Additionally, breaking down internal silos between commercial and marketing functions within retail organisations is seen as essential for better collaboration and media execution.
The Evolving Power Dynamic
FMCG and CPG suppliers are no longer passive participants in the retail media environment. As clients, they increasingly demand clear accountability for media plans and results. This shift reflects a realigning of power where suppliers seek greater control and transparency over their campaigns. Dan Larden of ISBA highlights that brands now leverage data transparency to challenge and refine media strategies, fostering a more balanced relationship.
Thomas Gosschalk, Global Industry Engagement Lead at PepsiCo, notes that this evolving dynamic could trigger a structural transformation within FMCG marketing practices, emphasizing shared responsibility between retailers and suppliers. Suppliers’ insistence on transparent data exchanges shifts the market culture towards openness, ultimately benefiting all parties by enabling more informed decision-making and ROI measurement.
A New Mandate for Retail Media Growth
The continued growth and success of the UK’s retail media market rest on the industry embracing transparency and collaboration. Both retailers and suppliers must adopt a mindset that values shared governance, open data exchange, and aligned commercial and marketing strategies. Clear communication and accountability pave the way for optimised media investment and sustainable sector expansion, driving value for brands, retailers, and consumers alike.
