Navigating the Evolution of Retail Marketing Structures in the Digital AgeTable of ContentsIntroductionThe Shift in Retail Media's Marketing StructureInnovative Solutions by Forefront BrandsThe Future of Retail Media MarketingConclusionFAQIntroductionImagine you're navigating a rapidly shifting landscape, one where the traditional silos of marketing gradually dissolve, giving way to a more integrated, dynamic approach. This is not a scenario from some futuristic movie; it's the current reality of retail media marketing. Did you know there's a staggering variety of combinations used to run retail media within advertisers, highlighting an industry in flux? This diversity underscores the urgent need for brands to adapt and rethink their marketing structures. This blog post delves deep into the changing patterns of retail media's marketing structure, examining the causes behind this shift, the challenges it imposes on Chief Marketing Officers (CMOs), and the innovative solutions brands are employing to stay ahead.By the end of this exploration, you will have a comprehensive understanding of why traditional marketing models are being reevaluated and how leading brands are navigating this transformation. Whether you're a marketing professional, a brand manager, or simply intrigued by the dynamics of retail media, this post will provide valuable insights into the evolving strategies that define the digital marketplace.The Shift in Retail Media's Marketing StructureThe Catalyst for ChangeThe evolution in retail media's marketing structure is not occurring in a vacuum. A study conducted by the Digital Shelf Institute and Stratably, involving 52 brands, revealed 22 different functional combinations with eCommerce often at the helm. But what's driving this shift? A key factor is the realization that more mature marketing teams are competing over the same ad units due to distinct parts of the marketing team operating in isolation.Breaking Down the SilosFast-Moving Consumer Goods (FMCG) brands traditionally segmented their teams and budgets into defined buckets, creating a fragmented approach. Retail Media, with its capability to target shoppers near the point of sale using first-party data, both online and offline, poses a question: where does it fit within the traditional budget allocation?This dilemma sits at the heart of the challenge for CMOs - finding a way to bridge these silos to enhance retail media's efficacy and optimize budgets.Innovative Solutions by Forefront BrandsCase Study: Kenvue's Unified ApproachKenvue, formerly the consumer healthcare division of Johnson & Johnson, provides a compelling example of how internal changes can foster a more cohesive marketing strategy. Six months into adopting an embedded model, Kenvue has seen significant improvements in decision-making speed and media spend efficiency. This model amalgamates brand, agency, and shopper marketing stakeholders into a singular organization, fostering a unified approach towards media expenditure.Jordan Witmer, Associate Director, Omnichannel Retail Media at Kenvue, emphasizes the agility this model offers, allowing for swift action upon identifying strategies that contribute to business outcomes, a stark contrast to the previous, more hierarchical approach.The Selection of Retail Media NetworksAnother layer of complexity comes with choosing the right Retail Media Networks (RMNs). Kenvue's strategy involves a comprehensive evaluation of potential networks to determine their unique value proposition and how they align with business objectives, moving away from the traditional approach of investing in RMNs based solely on expected outcomes at specific retailers.The Future of Retail Media MarketingThe Rising Importance of Retail Media NetworksThe exponential growth of RMNs highlights the urgency for brands to adapt their marketing structures. A dedicated RetailX Events conference emphasizes the increasing focus on RMNs, demonstrating their significance in the retail media landscape. This event promises to explore experiences ranging from well-established retailers to new entrants, offering insights into the evolving world of retail marketing.ConclusionThe changing structure of retail media marketing marks a pivotal moment in the industry, urging brands to reconsider their approaches to adapt to this new era. The journey of companies like Kenvue illustrates the advantages of adopting a more integrated, nimble strategy that breaks down traditional silos, enhances decision-making, and maximizes the potential of retail media networks.As we move forward, the challenge for CMOs and marketing teams will be to continue innovating, seeking cohesive strategies that leverage the full spectrum of retail media's capabilities. By doing so, they can navigate the complexities of the digital age, ensuring their brands remain competitive and resonate with consumers at every touchpoint.FAQWhat are Retail Media Networks?Retail Media Networks (RMNs) are advertising platforms owned by retailers that allow brands to advertise directly to consumers at the point of purchase, both online and in-store, leveraging the retailer's data.Why is the marketing structure in retail media changing?The marketing structure in retail media is evolving due to the increased competition over ad units, the realization of silo inefficiencies within marketing teams, and the rapid growth and significance of RMNs.How are brands like Kenvue addressing these changes?Brands like Kenvue are addressing these changes by implementing integrated models that break down silos within marketing teams, fostering a unified approach, and adopting a strategic selection process for RMNs to align with their business objectives.What does this mean for the future of retail marketing?The future of retail marketing is likely to see a continued shift towards more cohesive, integrated marketing structures, with a significant focus on leveraging RMNs to target consumers effectively and drive business outcomes.