Retail Media Network (Image provided by the Korea Broadcast Advertising Corporation (KOBACO))
SEOUL, Dec. 17 (Korea Bizwire) – Retail Media Networks (RMN), a tool enabling advertisers to track consumer purchasing behavior in real time and deliver personalized ads at optimal moments, is emerging as a transformative force in the advertising industry. Globally established as a key medium, RMN is poised for rapid growth in South Korea.
Global and Domestic Growth Projections
According to a report by the Korea Broadcast Advertising Corporation (KOBACO), the global RMN market is expected to reach $136.1 billion by the end of 2024, with projections of over $176 billion by 2028—a 40% growth.
In the U.S., RMN is predicted to surpass traditional TV advertising spend by 2024, capturing over 21.8% of the country’s total media ad spend by 2027.
Domestically, the RMN market is in its infancy but is expected to grow fivefold within five years. Local players like Coupang, Naver, Lotte, and Shinsegae are enhancing their RMN strategies to compete in this evolving landscape.
The Mechanics and Market Leaders
RMN leverages diverse channels, including websites, apps, partner platforms, and in-store displays, to target consumers with data-driven ads. Global leader Amazon controls 75% of the U.S. RMN market, with competitors like Walmart, Instacart, and Target following suit.
In South Korea, Coupang has adopted AI-powered recommendation systems modeled after Amazon, while Naver utilizes extensive first-party data to offer personalized ads. Lotte is developing an integrated RMN platform across its affiliates, and 11st is building an AI-based personalized recommendation system using SK Telecom’s technology.
Integration with Emerging Technologies
RMN is increasingly merging with connected TV (CTV), social commerce, and digital out-of-home advertising (DOOH) to diversify the advertising ecosystem. CTV strengthens personalized, data-driven advertising; social commerce facilitates real-time interactions and purchases; and DOOH extends the in-store advertising experience.
Redefining Advertising’s Future
“To harness the full potential of RMN, advertisers must adopt data-driven strategies and consumer-centric campaigns,” said Kim Na-kyung, an executive at SM C&C. “RMN will redefine the future of digital advertising, serving as a key driver for a sustainable advertising ecosystem.”
As South Korea accelerates its RMN adoption, the integration of AI and advanced data analytics will be pivotal in shaping the next generation of advertising strategies.
Ashley Song (ashley@koreabizwire.com)
