The Power of Retail Media in the Global Retail Market

How Technology Impacts and Predicts Challenges for the Next Years in the Retail Market

In 2024, the marketing and retail landscape is poised for a transformative shift, driven by the rapid adoption of innovative technologies and a renewed emphasis on sustainability and customer experience. Digital technologies are increasingly integrated into the operations of companies in the retail and consumer goods sector.

One of the secrets to retail success has been advertising, a practice dating back several decades. As online sales have become prevalent, Retail Media has emerged as a standout marketing strategy, enabling brands to advertise within e-commerce platforms and marketplaces.

According to Bain & Company, global investments in Retail Media are projected to reach $140 billion by 2026, with double-digit annual growth. However, it’s important to note that this estimate may not be precise as it may not include data from all countries, especially China. Statista reports that by 2022, global investment share had already reached a staggering 21%, with major players including Amazon, Alibaba, JD, Apple, and eBay. Amazon stands out as a top destination for global advertising investments, positioning itself as a powerful search engine alongside Google.

Immersive Technologies in Retail

Following the ChatGPT boom, there’s been a rapid advancement in implementing Artificial Intelligence (AI) solutions in this segment. Worldwide, entire marketing campaigns—text and images—are now created using AI. We can now forecast demand with an accuracy previously unimaginable without AI, alongside e-commerce site recommendations and intelligent product delivery to customers.

In Brazil,the annual Twilio report highlights that Brazilian companies are ahead of their North American counterparts in adopting AI for sales, with 86% using it for personalized recommendations. AI is also applied for customer support and data analysis. Personalization drives revenue, with 71% of Brazilian consumers preferring brands that offer customized interactions. However, data activation remains a challenge, with only 16% of companies believing they have the necessary data. Effective data use can result in a 54% increase in consumer spending and greater brand loyalty.

With rising demand, delivery quality becomes a competitive advantage in this sector—implementing solutions in the operational chain is inevitable. act digital has a successful case in retail using RFID (Radio Frequency Identification) technology.

Retail in the Crosshairs of Malware and IoT Data Hijacking

Such industry prominence brings security challenges. Research highlights risks in security cameras, routers, and other network devices, alongside increased social media usage in the sector. The study pointed out Cloud threats in the retail sector. It confirmed that Internet of Things (IoT) botnets, remote access tools, and infostealers—a malware category focused on collecting personal information such as passwords, logins, card data, wallets, cookies, and documents—were the main malware families deployed by attackers targeting retail last year.

To ensure online shopping security for users, here are simple tips from Paulo Azevedo, Head of Enterprise Architecture & Cybersecurity at act digital:

  • 1 | Research the establishment’s reputation on business review sites, and the internet in general.
  • 2 | Check if the website displays a padlock icon next to the URL (web address): if it does, it’s trustworthy!
  • 3 | Always use a virtual card and avoid saving your card details on websites, as this protects you in case of a platform breach.

If your company needs to review its operational chain or even enhance security and compliance in the technologies used, reach out to our team of experts.

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