DoubleVerify report highlights strengths & weaknesses of RMNs

DoubleVerify, a leading software platform for digital media measurement, data, and analytics, has unveiled insights from its eighth annual Global Insights Report, focusing on the performance trends within retail media networks (RMNs). The research encompasses over one trillion impressions from more than 2,000 brands across 100 markets. The study highlights both the potential and the challenges of RMNs as an advertising channel.

Retail media networks utilise a retailer’s first-party consumer data to target audiences through their own platforms and extended networks. This involves two primary types of inventory for advertisers: Owned & Operated (O&O) ads running directly on a retailer's properties, and audience extension ads that extend the reach across the web using the retailer's data.

The research reveals RMNs surpass benchmarks in several critical areas. Notably, fraud rates in RMNs are nearly one-third (31%) lower than DoubleVerify’s overall fraud benchmark. Additionally, brand suitability violations are 10% lower compared to DoubleVerify’s overall benchmark. These findings are promising for advertisers, given the increased investment in retail media as brands look to capitalise on the rich first-party data available within these networks.

Mark Zagorski, CEO of DoubleVerify, commented on the findings: "As retail media investments surge, these are encouraging numbers. In addition to being rich in first-party data, RMNs see lower fraud and brand suitability violations than do other environments. Ultimately, better media quality equates to better ad performance."

While the study highlights the advantages in terms of brand suitability and ad fraud, it identifies challenges in viewability. RMNs exhibit an 8% lower viewability rate than the overall DoubleVerify benchmark. Specifically, O&O inventory within these networks shows a Viewable Rate of just 36%, compared to a significantly higher rate of 73% for audience extension inventory.

This discrepancy in viewability is attributed to the strategic priorities of e-commerce platforms which focus on enhancing the shopping experience and maximising conversions, often at the expense of advertising viewability optimisation. Nonetheless, the report argues that the lower viewability of O&O inventory should not raise significant concern. Data points to O&O inventory effectively reaching shoppers when they are most likely to engage, resulting in engagement rates 183% higher than DoubleVerify’s attention baseline.

"The distinct roles of audience extension and O&O inventory in RMNs necessitate a nuanced understanding of KPIs," added Zagorski. "While audience extension ads boast higher viewability and exposure, it’s important not to overlook the high user engagement profile of O&O inventory."