How Retail Media Networks are Changing the Game

The concept of retail media has multiplied from a small opportunity to a $293 billion industry, according to Omdia, changing brand-consumer interactions. Currently, retailers use first-party data and in-the-moment purchase access to transform their platforms into profitable advertising spaces. This gives brands precise targeting, increased engagement and a more transparent return on investment.

And yet, retail media networks (RMNs) have taken off because they solve key problems for advertisers and retailers. Brands need better ways to reach consumers without relying on third-party cookies, and retailers want to maximize their digital real estate. The result? A perfect match.

This new channel for opportunity shows that it can bring in sales and measure how ads are performing, which is something traditional advertising can’t always do. Brands can see what’s working and why their ad spending is worth it. Also, with all the new privacy rules, marketers can’t rely on third-party data as much, making the data retailers have about their customers super valuable. An additional bonus is that brands can reach customers right where many are already buying stuff – online.

One of the biggest perks of retail media is that it’s personalized. Instead of using broad info about people like traditional digital advertising does, RMNs use what shoppers are doing in real time to show them ads that are relevant. If you’re looking for skincare products, you might see an ad for that moisturizer you were checking out earlier instead of just a random beauty ad.

Overall, retail media personalization is a win for consumers, brands and retailers. Shoppers get a more personalized experience and relevant deals. Brands see higher engagement and conversion because their ads are more appropriate. And retailers? They get more ad revenue and build stronger relationships with brands and shoppers.

There are massive success stories that demonstrate the transformative nature of retail media.

• Walmart Connect: Walmart has turned advertising into a significant revenue stream, with a 30 percent growth in ad sales in 2024 alone (Financial Times).
• Kroger Precision Marketing: Even as Kroger navigates its complicated merger with Albertsons, its retail media arm grew by 20 percent in 2024 (Reuters).
• Bunnings In-Store Media: The Australian retailer is expanding its digital ad strategy with 300 in-store LED screens, part of the country’s growing $1.6 billion retail media market (The Australian).

One of the main challenges for retail media is maintaining consumer trust by responsibly handling first-party customer data and complying with regulations. Another challenge is effectively integrating retail media with other digital and traditional marketing efforts. Finally, brands need a consistent way to measure and compare results across different retail media networks, as each network currently has its own analytics and performance metrics.

The retail media world is changing fast, thanks to new tech and how people shop. We’re seeing AI and machine learning get used for ads that hit the mark, online and in-store experiences blend with personalized mobile deals and interactive displays, and retailers and media companies are teaming up more to reach more people with ads and collect more data. Plus, there’s a big focus on using data analytics to see what’s working and what’s not, all while trying to keep things private for shoppers. Technologies like augmented reality (AR) and virtual reality (VR) also open doors for creating extraordinary, personalized brand experiences.

The retail media industry is rapidly evolving and presents many opportunities for retailers, brands and media companies to engage with consumers. All stakeholders can thrive in this dynamic landscape by embracing emerging technologies, utilizing data-driven insights, and maintaining transparency. This shift is encouraging brands to increase their investment in these networks, further propelling industry advancements, with retailers transitioning from simply selling products to curators of purchase-ready shoppers, redefining the future of digital marketing.