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The IAB has published its first set of standards for retail media at the beginning of December. But are these the new standards Christmas gift advertisers have been waiting for?
Not really.
Brands want standards that will facilitate consumption across multiple retail media networks. In the absence of standardization, it makes sense for brands to spend their budgets with the biggest flagships.
But with standardization, marketers can more easily spend across platforms, giving smaller players an advantage. The standards could be a boon for medium-sized retail media networks like Kevel and CitrusAd.
However, the IAB’s new standards are narrowly focused on defining in-store media types. For example, they establish metrics for ad impressions in physical locations, such as an ad’s “opportunity to see” (OTS) and its slightly more precise cousin, the “likelihood to see” (LTS). Just what the industry needs: a new list of three-letter acronyms.
All IAB standards are essentially voluntary. It is up to the industry to accept them or not. As AdExchanger Senior Editor James Hercher explains, while no retail media network is likely to oppose standardization, some of the biggest players, like Crite and Walmart, are unlikely to push hard for their adoption.
AI in advertising
We end 2024 with everyone’s favorite topic: the rise of generative artificial intelligence in advertising. Assistant editor Victoria McNally asked her sources for their views on artificial intelligence. How will retailers evolve their use of technology in the coming year? And if you expect answers that support the usual hype, get ready for a surprise.
Forget ChatGPT – marketers are sick of AI conversations revolving around chatbots.
Similarly, don’t expect every agency to accept AI-generated ads that are automatically tailored to the individual user. These things aren’t ready for prime time, and there’s no way to tell if that level of AI-powered ad personalization will ever be cost-effective—or even effective from a performance standpoint.
Instead of diving head first into AI, many marketers are tiptoeing in, testing lower-impact applications such as AI-generated subject lines for email blasts.
Still, marketers trust AI more and more each year, according to figures from Advertiser Perceptions. In 2023, only one in four advertisers said they trusted AI to make campaign decisions without human oversight. But this year, half of advertisers said they trust AI without human oversight.
We discuss the implications of that growing confidence. Is it based on a good understanding of the technology behind modern AI tools or are the platforms selling accounts?
