On this week's episode of The MadTech Podcast, Alexander Lund, founder & CEO of Mamuka ApS, joins ExchangeWire head of content John Still and COO Lindsay Rowntree to discuss Tesco's latest Retail Media move, Amazon capitulating to the EU over product promotion, revised ad growth forecasts, and more.

Tesco refresh media platform to bring ‘precision at scale’

Do you think that this strategy will make Tesco a Retail Media leader?

Tesco have expanded their Media and Insights Platform by signing partnerships with a number of “offsite” media owners. The platform, which was launched last year in partnership with DunnHumby, uses Clubcard and in-store data to help brands build stronger relationships with their customers, and has already been used by 450 top UK brands, according to the grocery giant.

The new deals, which include partnerships with ITVX, Pinterest, and The Trade Desk, aim to enable brands to reach consumers through new channels, and will be supported by clean room data provided by InfoSum and LiveRamp.

Tesco have also announced plans to provide more onsite advertising opportunities for brands, both in-store and on their website and app, including more sponsored ad placements, as well as “revitalised” special offers pages and enhanced brand zones. The retailer are continuing to roll out their SmartScreen Network and in-store Connected Displays.

Amazon agree to EU changes around product promotion

Are you optimistic that the DMA can curtail the power of Big Tech?

Amazon has reportedly agreed to change how they promote their own-brand products on their online marketplace. The move could resolve a long-running antitrust dispute by the European Union; launched in 2019, the investigation sought to determine whether the ecommerce giant used granular retailer data to give their own offerings a boost in contravention of EU law.

According to a report from the FT, Amazon has agreed to promote competitor brands in the “buy box” found at the top of the marketplace’s page, making them more prominent to customers. The agreement is expected to be officially announced on 20th December and to last for five years, therefore meaning that it must conform to the upcoming Digital Markets Act (DMA).

Some consider the news to be an indication that Big Tech firms could be successfully reined in by the DMA, as Amazon could be incentivised to maintain the changes they make to avoid being fined 10% of their annual turnover under the Act. However, others are wary of celebrating just yet, noting that it’s unclear what changes Amazon may make to ameliorate concerns surrounding how they handle merchant data.

2023 advertising growth forecasts revised downwards

How do you think advertisers can prepare for these more muted predictions? Which areas do you believe are in the best position ahead of 2023?

Prominent advertising firms have adjusted their predictions for global advertising growth in 2023, suggesting that it may be slower than previously forecast.

Media investment firm Magna now predicts that media owners’ ad revenue will increase by 4.8% to USD$833bn (~£679.5bn) next year, a drop from the 6.3% predicted in June. Meanwhile, media and data behemoth GroupM has forecast that global advertising revenue will rise 5.9% next year, a drop from its earlier estimation of 6.4%. 

GroupM also noted that it anticipates growth in China to be stymied due to the country’s pandemic-related lockdowns, with a report from the company reading, “One could make the argument that we are in a global post-Covid 19 ‘war’ period marked by the after-effects of government fiscal policy and major supply chain disruptions, and not in a dot-com bubble type recession”. The company went on to state “That’s why we are not seeing the universal downturn—not yet anyway—of 2008 or even 2001, despite most companies reminding us that they are proceeding with an abundance of caution.”