Understanding Retail Media
Retail media refers to the advertising opportunities that retailers offer across their owned and operated platforms, such as websites, apps, and physical stores. Similar to traditional media outlets, retailers now leverage their customer data and digital infrastructure to help brands reach targeted audiences. These ads can be either on-site—appearing on a retailer’s own properties—or off-site, where a retailer’s customer data is used to target consumers across external platforms like social media or connected TV.
Retailers also provide advertisers with services including analytics dashboards, campaign management tools, and self-service platforms, making these networks attractive to brands looking for performance-driven marketing strategies.
What Is a Retail Media Network?
A retail media network is the platform or system a retailer implements to offer advertising services. While the terms “retail media” and “retail media network” are often used interchangeably, the latter refers specifically to the infrastructure that enables these advertising capabilities.
Examples include Amazon Advertising, Walmart Connect, Target’s Roundel, and Kroger Precision Marketing. These networks allow brands to connect with audiences using rich first-party data and closed-loop measurement.
Retail vs. Commerce Media
Industry experts often use “commerce media” to describe the broader scope of retail media, especially as non-retail platforms like Uber and Chase Bank enter the space. This terminology reflects the increasingly diverse environments where transactions occur, including social media and digital marketplaces.
Forrester analyst Sucharita Kodali advocates for this shift, suggesting that commerce media better captures the essence of today’s advertising landscape.
Why the Retail Media Boom?
The rise of retail media is being dubbed the “third big wave of digital advertising,” following search and social media. Retailers are capitalizing on their first-party data and existing customer relationships to generate new streams of revenue. In 2022, global retail media revenue hit $101 billion, representing 18% of all digital ad spend.
Retail media offers brands a powerful mix: audiences with strong purchase intent, immediate sales data, and the ability to directly link ad impressions to product sales.
Retailers Rushing to Join
Retailers are rapidly launching media networks to capitalize on this booming opportunity. Amazon led the charge, generating nearly $38 billion in 2022. Following suit, Macy’s earned $105 million from its network just one year after launch. By 2023, every top 10 U.S. retailer had established a retail media network.
Walmart’s media arm, Walmart Connect, brought in $2.7 billion in 2022, while Target’s Roundel and Best Buy’s Retail Media+ continue to grow their influence.
Top Retail Media Networks
Amazon commands 77% of retail media ad spend in the U.S., followed by Walmart Connect, eBay Ads, and Target’s Roundel. However, the market is diversifying, with many retailers generating over $100 million annually from their media arms. Other notable networks include:
- Albertsons Media Collective
- Kroger Precision Marketing
- Carrefour Links (Europe and LatAm)
- Instacart’s Carrot Ads
Non-retail companies like PayPal, Uber, and Expedia are also entering the space, further expanding what qualifies as a retail media network.
Retail Media Solutions and Partners
Retailers can choose to build their networks in-house or partner with solution providers. Instacart’s Carrot Ads, for example, offers a white-label solution for retailers, giving them access to ad tech and sales expertise without the need to start from scratch.
Dollar General partners with platforms like Bridge, LiveRamp, and The Trade Desk, while Uber collaborates with Omnicom Media Group to enhance data-driven targeting across its media properties.
Types of Retail Media
Retail media generally falls into three categories:
- On-site: Ads on a retailer’s website, app, or email campaigns.
- Off-site: Ads on third-party platforms using retailer data.
- In-store: Physical ads displayed on screens, audio systems, or end-caps inside brick-and-mortar stores.
On-site vs. Off-site Advertising
While most early retail media efforts focused on on-site ads, the real power comes from off-site advertising—where first-party data is used to target consumers across the open web. This includes connected TV (CTV), social media, and digital video. Retailers like Walmart and Kroger are expanding into these areas, offering closed-loop measurement and high return on ad spend (ROAS).
For instance, Nordstrom reports that 60% of its retail media revenue now comes from off-site placements, and Lowe’s has integrated with Yahoo’s demand-side platform to deliver off-site experiences.
In-Store Retail Media: The New Frontier
As digital channels saturate, in-store media is emerging as the next big opportunity. With most retail sales still occurring in physical locations, advanced networks are looking to digitize in-store environments.
Technologies from companies like Cooler Screens and Samsung enable dynamic, privacy-safe ad displays within stores. These placements not only reach customers at the point of purchase but also provide valuable data on foot traffic and purchases.
Retailers like Hy-Vee and Kroger are already investing in in-store digital screens, while Sam’s Club is integrating advertising into its Scan & Go checkout experience.
The Road Ahead
Retail media is no longer a niche strategy—it’s a cornerstone of modern advertising. As brands seek more efficient, data-driven ways to reach consumers, retailers are uniquely positioned to deliver measurable, high-impact campaigns. Whether on-site, off-site, or in-store, retail media is set to redefine the advertising landscape for years to come.
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.