Recently, the fusion of advertising and retail has birthed a dynamic force: retail media. As technology advances and consumer behavior shifts, this burgeoning field offers brands unprecedented avenues to engage and attract potential customers within their shopping journey, whether in-store or online.
Retail media networks have experienced significant growth in recent years, evolving from simple in-store displays to sophisticated online platforms driven by data analytics and personalized marketing strategies. These networks leverage first-party data, allowing brands to target consumers with precision and craft meaningful shopper experiences, ultimately boosting sales and fostering customer loyalty.
Recent industry surveys confirm that most marketers are boosting their retail media budgets. For example, 65% of global brand marketers plan to increase their RMN spend in 2025, reflecting its rising role in omnichannel advertising strategies. This guide updates our understanding of retail media with the latest trends, use cases, and data as the industry continues to mature.
What Is Retail Media? Difference From Retail Media Network
What is retail media? Retail Media refers to the practice of advertising within a retailer’s ecosystem – on its websites, apps, or in-store displays – using the retailer’s own shopper data.
The next question you need to ask yourself in this topic is: What is a retail media network?
A Retail Media Network (RMN) is the platform a retailer offers to advertisers for this purpose. For example, Amazon Advertising and Walmart Connect are RMNs that let brands place ads on Amazon.com or Walmart’s digital properties. These networks can use first-party data (like past purchases, loyalty program activity, and store traffic) to target customers at various stages of their shopping journey.
Key Components of Retail Media
- First-party data: When you think about what is retail media, first-party data is a backbone here, enabling precise targeting through loyalty programs and point-of-sale transactions. In practice, many retailers tie digital ads to loyalty programs, ensuring ads are relevant to what shoppers actually want.
- Ad spend: Marketers allocate significant budgets to retail media due to valuable shopper insights.
- Rich ad inventory: Retailers now offer a broad mix of ad formats. Popular options include Sponsored Products (ads shown on retailer search results or product pages), Sponsored Brands (banner or video ads on category pages), and display/video ads on site or app pages. Nielsen data shows that on Amazon (the world’s largest RMN) roughly 40% of retail ad spend goes to Sponsored Products, followed by 24% for Sponsored Brands, 20% for display, and 16% for video.
- Commerce media: Retail media ads often tie directly to commerce metrics. They can be deployed throughout the marketing funnel – not just at the digital “point of sale.” For instance, brands increasingly use RMNs to drive upper-funnel awareness via display or CTV ads powered by shopper data, then retarget interested users with on-site product ads to complete the sale.
- Digital channels and screens: Includes diverse platforms such as digital ads on websites, apps, and in-store displays.
- Offsite retail media: Major RMNs now let brands take retail data offsite. For example, Amazon’s DSP (Demand-Side Platform) lets advertisers target Amazon shoppers on third-party sites (Facebook, Pinterest, etc.) using Amazon’s data. Similarly, Walmart’s new ad platform (through its acquisition of Vizio’s ad tech) will deliver ads on connected TV and other media. These offsite retail media opportunities mean brands can amplify retail ad messages beyond the retailer’s own site.
Evolution of Retail Media
Originally, retail media was confined to physical stores, utilizing tactics such as in-store displays and point-of-sale promotions. However, the evolution of technology and consumer behavior has drastically shifted the focus to online platforms, where ads can be targeted with greater precision. The growth of digital channels and the sophistication of data analytics have also led to the rise of personalized marketing strategies, making retail media a crucial component in the modern advertiser’s toolkit.
Origins and Growth Factors
Retail media began as a means for brands to capture consumer attention directly at the point of sale, using techniques such as physical displays, promotional offers, and loyalty programs. This direct interaction was an essential part of shopper marketing, allowing brands to influence purchasing decisions at a critical moment. However, the retail media landscape witnessed significant growth as digital channels emerged. The integration of first-party data, collected through loyalty cards and customer interactions, provided retailers with unprecedented insights into consumer behavior. This data became a valuable asset, allowing for the development of targeted strategies that enhanced return on ad spend and provided measurable outcomes, thus attracting more media spend.
Transition to Online Retail Advertising
The shift from traditional retail environments to online platforms marked a pivotal transition in the retail media. As e-commerce gained momentum, retailers recognized the immense potential of digital channels to expand their reach and engage with their target audiences more effectively.
Retail Media Networks facilitated this shift, enabling advertisers to leverage digital ads, display advertisements, and sponsored products across websites and apps. This transition allowed retailers to utilize digital screens and ad platforms to create dynamic, interactive shopping experiences. With the ability to present tailored content on product detail pages and the digital shelf, brands could better capture consumer attention at every stage of their buying journey.
The Rise of Personalized Marketing Strategies
As online shopping grew, retailers realized they could digitize those displays – placing sponsored ads on their websites and apps – and back them with rich customer data.
This shift accelerated in the 2010s with the rise of ecommerce. Early RMNs were basic: simple on-site banners or promoted listings. But with advances in technology, RMNs have become sophisticated advertising ecosystems. They now rival large media networks in targeting and measurement. For example, Amazon’s ad business – once just keyword search ads – now earned $56.2 billion in 2024, and is projected to top $60 billion in 2025. Walmart’s ad network (Walmart Connect) hit about $4.4 billion in 2024 and is rapidly growing.
The proliferation of digital advertising tools and data analytics has given rise to personalized marketing strategies, a hallmark of modern retail media. Personalized strategies involve tailoring advertising content to align with the interests and needs of specific audience segments. By doing so, brands can increase engagement rates and conversion rates, driving higher sales volumes. The use of sophisticated data analytics enables retailers to continuously refine their strategies, optimizing ad placements, inventory management, and campaign effectiveness. As a result, personalized marketing has become a driving force behind the success of retail media, offering brands a competitive edge in a crowded digital advertising landscape.
Types of Retail Media Ads
Retail media refers to a spectrum of advertising opportunities within retail environments, utilizing both in-store and digital channels to engage potential customers. This method of advertising leverages the assets of retail stores, such as point of sale systems, digital screens, and loyalty programs, to effectively reach shoppers at various stages of the purchasing journey. What is retail media advertising by its types? Retail media ads can be grouped into two primary categories: in-store advertisements and online digital ads (onsite and offsite, each offering unique advantages and reaching customers through different touchpoints.
In-Store Advertisements
In-store advertisements utilize various physical and digital formats within the retail space to influence purchasing behavior. The key to successful in-store advertising lies in its ability to target consumers in a shopping mindset, right when they’re most likely to make a purchase decision.
Common formats include eye-catching displays near checkout counters or strategically placed digital screens throughout the store. Display ads here can highlight promotions, sponsored products, or new items available in-store. The use of loyalty cards and loyalty program data allows retailers and brands to tailor these ads, showcasing offers that resonate with specific customer segments.
Onsite Retail Media
Onsite retail media refers to digital ads that appear directly on a retailer’s own platforms — such as their website or mobile app. This includes sponsored product listings, display banners, carousels, and brand pages that are shown to shoppers as they browse or search. These ads reach consumers when they’re already in a buying mindset, helping brands boost visibility and drive conversions right at the digital point of sale.
Offsite Retail Media
Offsite retail media uses a retailer’s first-party data to target shoppers across external websites, apps, and social platforms. These ads might appear on Google, Facebook, or other programmatic networks and are designed to re-engage past visitors, bring new users to product pages, or raise awareness of a brand or promotion. It combines the power of high-intent retail data with the scale of the open web.
The Role of First-Party Data in Retail Media
First-party data is an essential component of retail media, offering brands and retailers unique insights that drive more personalized and effective advertising strategies. Retail media involves using a retailer’s digital channels to showcase ads, such as sponsored products and display ads, directly to shoppers. By leveraging first-party shopper data, retailers can enhance their media networks, optimizing ad spend and targeting.
Here’s how first-party data plays a role in retail media:
- Target audience: Tailor content based on detailed customer insights.
- Ad inventory optimization: Use data to decide where and when to display ads effectively.
- Loyalty programs: Enhance through personalized offers, boosting engagement.
- Better analytics: Provides critical insights for shopper marketing strategies.
Retailers use this data to power commerce media on their digital shelves, narrowing in on what drives sales. Moreover, media companies and media owners can leverage first-party data to improve their advertising platforms, offering more valuable ad spaces.
In summary, first-party data is a key driver in refining the capabilities of Retail Media Networks. It empowers retailers and brands to create more targeted, efficient, and impactful advertising campaigns.
Prominent Retail Media Networks
Retail media networks have revolutionized how brands connect with consumers in the digital age. These networks utilize retail platforms, equipped with rich first-party data, to showcase tailored advertisements. By aligning ads strategically within a retail environment, brands can engage consumers more effectively throughout their shopping journey. Leading the charge in this strategic advertising evolution are major players like Amazon Advertising and Walmart Connect. Each of these networks empowers advertisers to harness advertising platforms and data analytics to refine their marketing efforts. Through precise targeting on digital shelves and product detail pages, these networks can enhance shopper marketing and increase ad spend efficiency.
Amazon Advertising
Amazon Advertising stands as a powerful example of successful retail media. By providing brands access to Amazon’s extensive digital channels and first-party shopper data, it offers a unique opportunity to reach a broad yet targeted audience. Amazon’s infrastructure is optimized for precise advertising strategies that include everything from Sponsored products on product detail pages to display ads across their digital shelves. Brands can tap into the extensive reach of Amazon, achieving better visibility and conversion rates by using Amazon’s robust advertising platforms. The seamless integration of their point-of-sale data and loyalty program insights allows advertisers to deliver highly personalized experiences to shoppers.
Walmart Connect
Walmart Connect is another significant player in the landscape of retail media networks. This platform provides advertisers access to Walmart’s considerable repository of first-party data, enabling highly targeted and efficient advertising campaigns. With a focus on enhancing shopper marketing, Walmart Connect leverages digital advertising to connect brands with consumers at various touchpoints, including digital shelves and offsite retail media. The platform allows media owners to use data analytics to optimize ad inventory, ensuring that ads are presented to the right audience at the right time. Walmart Connect provides a comprehensive solution for brands aiming to elevate their commerce media strategy and maximize their digital ad spend.
Addressing Operational Complexities
Addressing operational complexities in a business setting involves navigating a variety of challenges that can hinder efficiency and productivity. These complexities often span multiple areas such as logistics, supply chain management, resource allocation, and process optimization. Each aspect requires careful attention to ensure seamless operation.
Key Areas To Address
- Supply chain management: Efficient supply chains require robust systems for tracking, forecasting, and managing inventory to mitigate risks and minimize disruptions.
- Resource allocation: Proper distribution of financial and human resources is critical for achieving optimal outcomes.
- Process optimization: Streamlining processes through automation or software solutions can drastically improve efficiency and reduce errors.
- Data management: Leveraging data analytics to drive decision-making processes enables companies to respond swiftly to market changes.
Strategies For Success
To stay competitive and responsive, it’s essential to implement technology solutions that enable real-time communication and monitoring. These tools provide instant visibility into operations, allowing teams to quickly identify and address issues as they arise. By leveraging advanced platforms and data analytics, organizations can make informed decisions faster and maintain smooth workflows.
Equally important is fostering a culture of continuous improvement and innovation. Encouraging employees to share ideas and experiment with new approaches creates an environment where growth and adaptation become part of everyday work. This mindset helps companies evolve with changing market demands and drives long-term success by constantly refining processes and solutions.
Finally, developing cross-functional teams plays a crucial role in proactive problem-solving. When individuals from different departments collaborate, they bring diverse perspectives and expertise that enable early identification of operational challenges. These teams can work together to design effective solutions, prevent issues from escalating, and ensure alignment across the organization’s goals and priorities.
A strategic approach to these complexities not only improves current operations but also positions businesses to better adapt to future challenges.
Navigating Data Privacy Concerns
Retail media refers to the practice of advertisers reaching consumers directly using retailers’ first-party data, often through digital channels like digital screens or online platforms.
One key advantage of retail media is access to first-party shopper data, such as through loyalty cards, allowing for precise targeting and shopper marketing. However, ensuring the protection of this data is paramount. Companies must adhere to strict privacy regulations and foster consumer trust by implementing robust data analytics and protection measures.
Key challenges in data privacy:
- Consent management: Obtaining and managing consent from users for data collection.
- Data security: Protecting data from breaches and unauthorized access.
- Transparency: Clearly communicating how data is collected and used.
Ad platforms and media owners are re-evaluating their strategies to prevent privacy issues while still offering effective targeting options to advertisers. By doing so, brands can maximize their ad spend, enhance the digital shelf presence of sponsored products, and maintain consumer confidence in an ever-evolving commerce media environment.
Emerging Trends in Retail Media
Retail media is experiencing rapid evolution, driven by advancements in digital technology and data analytics. The fusion of traditional point of sale advertising with digital advertising platforms is creating a robust ecosystem for brands and retailers alike. This transformation is spearheaded by new trends that focus on leveraging first-party data, optimizing ad spend, and enhancing shopper engagement through strategic media placements. As media companies and retailers embrace these changes, they create dynamic opportunities for growth and innovation in retail media. These trends not only offer a new dimension to advertising but also redefine how brands reach and interact with their target audiences.
Planned retail media spending is on the rise across industries, as brands recognize its power to influence shoppers at the point of purchase. The automotive sector is leading this growth, while industries like retail and financial services are adopting a more gradual approach.
Find out more about Retail Media trends here!
Programmatic Buying
Programmatic buying is revolutionizing how advertisements are purchased and placed in the retail media space. This automated buying process uses sophisticated algorithms to purchase digital advertising space in real-time. By integrating first-party shopper data, retailers can tailor ad placements more effectively, ensuring that the right messages reach the right audiences at the right time. This level of precision helps brands optimize their ad spend, making it a cost-effective solution for targeting specific customer segments. Programmatic buying also streamlines the process of managing ad inventory, allowing brands to efficiently utilize digital screens and display ads across diverse platforms. Additionally, it enables brands to swiftly adjust their marketing strategies in response to consumer behavior and market trends, enhancing agility and responsiveness. As programmatic buying continues to advance, it will play an integral role in shaping the future of retail media advertising, empowering brands and retailers to maximize their digital advertising efforts through data-driven insights.
Final Word
Retail media is growing rapidly, and it’s transforming how brands engage with shoppers. It’s not just about ads anymore — it’s about using smart data, the right tools, and being where your customers are. If you’re considering starting or expanding your retail media strategy, having the right platform is crucial. Adtelligent offers a platform that helps both retailers and brands maximize their ad space, track results in real-time, and grow revenue smartly and flexibly.
FAQ
What Is Retail Media Role?
Retail media refers to advertising that takes place on a retailer’s digital platforms — such as websites, apps, or in-store screens — allowing brands to reach shoppers close to the point of purchase using first-party data.
What Is the Difference Between Retail Media and Traditional Media?
Retail media targets consumers directly within the shopping environment using data-driven, digital placements, while traditional media (like TV, radio, or print) focuses on broader, less targeted brand awareness outside the point of sale.
Is Amazon Retail Media?
Yes, Amazon is a major player in retail media. Its platform, Amazon Ads, allows brands to promote products through sponsored listings, display ads, and video ads across Amazon’s ecosystem using rich shopper data.
Is DoorDash a Retail Media Network?
Yes, DoorDash has evolved into a retail media network by offering advertising opportunities within its app and platform, helping brands promote food, beverages, and even non-food items to high-intent consumers.