How Retail Media Networks Drive Growth for Scaling Brands

December 20, 2024

Retail Media Networks (RMNs) are redefining how brands connect with consumers, offering a strategic edge for businesses ready to scale their reach and impact. These platforms, owned and operated by retailers, allow brands to advertise not only on digital assets like retailer websites and apps but also through in-store placements, creating an integrated approach to consumer engagement. 

RMNs, therefore, grant unparalleled access to first-party data, which allows brands to connect with highly targeted, purchase-ready audiences.

For scaling brands, particularly those expanding beyond direct-to-consumer (DTC) models, RMNs offer a unique combination of reach, efficiency, and precision. By enabling hyper-targeted campaigns and integrating seamlessly into the consumer shopping journey, RMNs can drive measurable results and optimize return on investment (ROI).

This article explores how RMNs help brands achieve scalable growth, covering their functionality, key considerations for adoption, and the different ways they act as a growth catalyst.

What Are Retail Media Networks?

At their core, Retail Media Networks are platforms that allow retailers to monetize their digital properties by selling advertising space to brands. These platforms leverage first-party shopper data collected from retailer websites, apps, and in-store interactions. 

This data allows brands to create highly targeted campaigns that align with consumer preferences and behaviors.

Core Functionality

RMNs serve as a bridge between brands and consumers, offering advertising opportunities across a diverse range of digital and physical channels:

  • Retailer Websites: Ads appear as sponsored products, featured banners, or promoted listings within search results, ensuring visibility during high-intent shopping moments.
  • Mobile Apps: Personalized ads are integrated into retailer apps, engaging users while they browse, search, or shop on their devices.
  • Email Campaigns: Brands can be included in targeted, retailer-driven promotional emails, leveraging a retailer’s customer base to reach loyal and engaged shoppers.
  • Connected TV (CTV): Ads are delivered through streaming platforms, enabling brands to target audiences in a visually engaging and less crowded environment.
  • In-Store Digital Displays: Digital screens in physical retail locations showcase targeted ads or promotions, connecting the online and offline shopping experience.
  • Social Media Partnerships: Some RMNs extend their reach to platforms like Facebook, Instagram, and TikTok, allowing brands to leverage retailer data for off-site advertising.
  • Programmatic Ads: Retailers partner with demand-side platforms (DSPs) to deliver programmatically purchased ads on external websites and networks, expanding reach beyond their own ecosystems.

By offering brands access to multiple touchpoints across a shopper’s journey, RMNs ensure that advertising campaigns reach consumers wherever they engage with retail content, whether online, on mobile, or in-store. 

This omnichannel approach helps brands create a seamless and consistent experience that drives awareness, engagement, and conversions.

Examples of Leading RMNs

  1. Amazon Advertising: As the largest Retail Media Network, Amazon provides a comprehensive suite of advertising options, from Sponsored Products, which promote individual items directly in search results, to programmatic solutions that use advanced algorithms and real-time data to automate the buying and placement of ads.
  2. Walmart Connect: Walmart combines its huge physical footprint with digital shopper data, offering hybrid campaigns that link in-store and online behaviors.
  3. Target Roundel: Known for curated placements, Target focuses on creating engaging ad experiences that resonate with its audience.

But there are tons of RMNs catering to various industries and markets for you to choose from. Home Depot and Lowe’s serve home improvement and DIY brands, while CVS and Walgreens are great options for health and wellness advertisers. 

Beyond these, RMNs like Best Buy, Kroger, and Macy’s target niches such as electronics, groceries, and fashion. This diverse ecosystem allows brands to select networks that align with their audience and goals.

RMNs excel at connecting brands with purchase-ready shoppers in a privacy-compliant environment. With the decline of third-party cookies, first-party data from RMNs has become an essential asset for brands seeking precise targeting and impactful advertising.

How to Evaluate If RMNs Are Right for Your Brand

Retail Media Networks are not a one-size-fits-all solution, and they’re best suited for brands that have reached a level of maturity where growth requires scaling into omnichannel strategies. While RMNs offer immense potential, they are typically most impactful for mid-sized to large enterprises

At this stage, brands face the challenge of expanding beyond DTC channels or traditional marketing tactics to achieve the next level of growth.

Budget Considerations

RMNs often use a cost-per-thousand-impressions (CPM) model for digital advertising, with recent rates ranging from $15 to $65, depending on the format and network. For example, on-site display ads fall closer to $15, while CTV placements average around $33. However, in-store promotions typically follow different pricing models.

In-store placements include options like video ads on in-store screens, digital merchandising displays, and proximity ads sent directly to shoppers’ phones based on their location in a store. Best Buy Ads, for example, uses in-store screens and proximity notifications to drive engagement during the shopping journey.

These campaigns often involve flat fees for placements such as end caps, shelf signage, and digital displays, or revenue-sharing agreements based on sales performance. Measurement for these campaigns often relies on surveys assessing ad recall, time spent in-store, and impressions generated through digital displays. 

For brands, the key to success lies in balancing digital and in-store strategies. Premium in-store placements, like digital shelf displays or interactive kiosks, often require higher investment but can significantly enhance visibility and influence purchase decisions. 

By leveraging both digital and physical RMN offerings, brands can create cohesive, full-funnel campaigns that maximize their reach and ROI. 

While this model can deliver strong ROI by targeting high-intent audiences, brands need to ensure their ad budgets are substantial enough to support impactful campaigns. 

In highly competitive industries, achieving visibility may require even greater investment to secure premium ad placements and stand out among rivals.

Operational Readiness

To succeed with RMNs, brands need:

  • Creative Pipelines: The capacity to produce fresh, engaging ad content tailored to each platform.
  • Analytics Tools: The ability to implement tools to monitor performance and optimize campaigns in real time.
  • Collaborative Processes: A willingness to work closely with RMN account teams to leverage retailer insights and maximize impact.

Industry Fit

Certain industries benefit disproportionately from RMNs due to their unique dynamics:

  • Grocery: Frequent purchases and broad shopper bases make precise targeting a game-changer.
  • Beauty: High-consideration purchases thrive with personalized and visually appealing ads.
  • Electronics: Dynamic ads that retarget high-ticket shoppers can accelerate conversions.

Any industry that relies on clear audience segmentation, repeat purchases, or visually engaging campaigns can benefit from RMNs. Whether a brand focuses on home goods, apparel, or specialty niches, RMNs provide the tools to target high-intent shoppers and optimize advertising spend effectively.

This flexibility makes RMNs a great choice for businesses across diverse categories looking to enhance their digital advertising strategy.

RMNs are ideal for brands at a significant growth stage, offering a pathway to move beyond DTC strategies into omnichannel dominance. These networks excel at scaling visibility and fostering retailer relationships critical for growth.

Why Retail Media Networks Are a Growth Catalyst for Scaling Brands

Scaling brands face many challenges as they grow, including increasing their market reach, efficiently allocating ad budgets, and staying relevant in a competitive ecommerce environment. 

Retail Media Networks offer a powerful solution by combining precise targeting, strategic visibility, and measurable results to help brands grow effectively and sustainably. Here’s how RMNs act as a growth catalyst:

First-Party Data

RMNs stand out because they provide access to retailers’ first-party shopper data. This data includes invaluable insights into customer behaviors, preferences, and purchase patterns—data points that brands would struggle to obtain elsewhere. 

Unlike third-party cookies, which are being phased out, this first-party data is privacy-compliant and incredibly precise. 

Using this information, brands can create hyper-targeted campaigns that resonate deeply with specific audience segments, improving both ad relevance and engagement.

Enhancing Visibility

The concept of a “digital shelf” is central to Retail Media Networks. They position brand ads in high-visibility locations, such as search results, product pages, and checkout screens, ensuring that the brand is front-and-center when shoppers are most likely to make a purchase.

This approach mirrors the importance of premium shelf space in physical stores. In-store RMNs extend this visibility through placements like digital displays at end caps, shelf-edge screens, and even interactive kiosks, capturing attention as consumers browse aisles. 

These in-store touchpoints not only reinforce brand presence but also leverage the unique advantage of engaging shoppers at the critical moment of decision-making.

By combining the precision of digital targeting with the immediacy of in-store advertising, RMNs provide brands with a powerful, omnichannel approach to enhancing visibility and driving sales.

Expanding Audience Reach

By tapping into a retailer’s digital ecosystem, RMNs enable brands to connect with high-traffic platforms and uncover new customer segments. 

These networks are especially valuable for discovering high-intent shoppers—individuals who are already considering a purchase and just need a nudge to convert.

Accelerating Sales

Promotional tools like sponsored product ads and dynamic placements seamlessly integrate with the shopping experience, making it easier for consumers to find and buy products. 

By reducing friction in the purchase journey, RMNs help brands achieve quicker sales and higher conversion rates.

Omnichannel Presence

One of the key advantages of RMNs is their ability to connect online and offline strategies. Brands can align their digital advertising efforts with in-store promotions, creating a consistent and holistic customer experience that strengthens loyalty and reinforces brand messaging.

Measurable ROI

RMNs provide unmatched transparency in performance tracking. Metrics such as return on ad spend (ROAS), cost per acquisition (CPA), and sales lift allow brands to justify their investments and refine strategies for maximum impact. 

This direct link between ad spend and measurable outcomes is critical for scaling brands that need to optimize every dollar.

Retailer Partnerships

RMNs aren’t just advertising platforms—they’re gateways to stronger retailer relationships. 

Through co-branded promotions and exclusive offerings, brands can align their goals with the retailer’s goals for mutual growth. These partnerships often extend beyond advertising into broader collaborative efforts that help brands scale even further.

Key Steps to Get Started with RMNs

A strategic approach is essential for brands entering the RMN ecosystem. Here are four foundational steps to launch successful campaigns:

Identify the Right Retailer Partners

Choosing the right Retail Media Network begins with aligning retailer demographics and platform capabilities with your brand’s goals. 

For instance, a beauty brand might benefit from Target’s Roundel due to its strong performance in personal care categories, while a grocery brand may find Walmart Connect more suited to their high-frequency shoppers. 

Evaluating factors such as audience overlap, digital traffic, and the retailer’s data offerings will help ensure your campaigns reach the right audience.

Set Clear Goals

Defining measurable objectives is crucial for evaluating the success of Retail Media Network campaigns. Key performance indicators (KPIs) like ROAS, sales lift, and click-through rates (CTR) should align with your overall business strategy. 

If your goal is to drive immediate sales, prioritize metrics like ROAS, but if the focus is brand awareness, impressions and engagement metrics might take precedence.

Leverage Data Insights

RMNs provide valuable first-party shopper data, offering insights into consumer behaviors, preferences, and purchasing patterns. This data allows brands to craft highly targeted and relevant campaigns. 

Use these insights to tailor your ad creatives, highlight top-performing products, and refine placement strategies. 

Brands that effectively utilize this data often see improved ROI and stronger customer engagement.

Optimize Campaign Performance

Launching a campaign is just the beginning. Continuous testing and refinement are crucial to achieving long-term success.

Experiment with various ad formats—such as dynamic banners or sponsored product ads—to determine what resonates most with your target audience. Regularly refresh ad creative to avoid fatigue and keep shoppers engaged, and fine-tune bidding strategies based on performance data to maximize efficiency.

Common Challenges and Solutions

While RMNs offer significant advantages, scaling brands often encounter difficult-to-navigate obstacles:

High Competition

Competition for ad placements can be fierce, especially on platforms like Amazon and Walmart. 

To stand out, brands need compelling creative that aligns with the retailer’s environment. High-quality visuals, authentic storytelling, and exclusive promotions can make a significant difference in capturing shopper attention.

Budget Management

RMNs operate on CPM models, and with rates ranging from $15 to $65, careful allocation is necessary to avoid overspending. 

Focus your ad budget on a few high-performing RMNs rather than spreading resources thinly across multiple platforms. 

This approach ensures a meaningful presence on key networks, driving better ROI and avoiding diminishing returns.

Attribution Complexity

Tracking the effectiveness of RMN campaigns can be challenging, especially when operating across multiple platforms. 

Tools like Triple Whale help brands consolidate performance data from various sources into a single dashboard, enabling marketers to identify which campaigns and channels drive the most value.

Although Triple Whale doesn’t natively integrate with all RMNs, it supports tracking through UTM parameters. By connecting unique tracking identifiers to campaign URLs, marketers can monitor traffic sources, ad spend, and ROAS for non-integrated channels, including offsite RMN campaigns.

For in-store Retail Media Network efforts, attribution often relies on retailer-provided analytics, such as foot traffic, purchase lift, and ad recall surveys. Pairing these insights with UTM-tagged digital campaigns—like QR codes on in-store displays or proximity notifications—helps bridge the gap between digital and physical touchpoints.

By combining tools like Triple Whale with in-store metrics, marketers can gain a clearer picture of campaign performance, allocate budgets effectively, and optimize results across channels.

Real-Life Examples of Success

Delta Children: Dominating Search Visibility with Walmart Connect

Delta Children, a leading supplier of baby and children’s furniture, was looking to launch a new line of cribs and ensure they appeared prominently on the first page of search results. 

To achieve this, the company partnered with Trellis, a Walmart Connect Technology Partner, to launch Sponsored Brands campaigns. 

By focusing on time-based bidding during peak hours, optimizing budgets, and refining their keyword strategy, Delta Children effectively captured shopper attention at critical moments.

The results were striking. ROAS increased by 34%, CTR rose by 46%, and conversion rates improved by 48%, driving a 25% increase in units sold. 

SharkNinja: Winning the Holidays with Target Roundel

SharkNinja, a household appliance brand, wanted to reach new customers throughout their shopping journey during the holiday season.

Target Roundel crafted a full-funnel strategy, combining CTV, social media, and onsite display ads. 

By utilizing Target’s first-party data, SharkNinja was able to identify and engage with high-potential audiences at each stage of the funnel.

This multi-channel approach drove a 16% year-over-year sales increase and achieved a 324% higher click-through rate on Facebook compared to industry averages.

And 91% of purchasers from the CTV ads were new customers—13% higher than the brand’s historical benchmarks. 

Loftie: Building Awareness and Sales on Amazon Ads

As a small business offering premium sleep products, Loftie faced the challenge of competing with larger brands while communicating the value of its smart alarm clock. 

By using Amazon’s Sponsored Products, Sponsored Brands, and Sponsored Display ads, Loftie was able to build awareness and attract high-intent shoppers during the holiday season.

The campaign emphasized video ads to showcase the product’s unique features—combining a white noise machine, Bluetooth speaker, and alarm clock in one. This strategy resonated with shoppers, delivering a $5.66 ROAS and placing Loftie in the 75th percentile for click-through rates within its category. 

The campaign not only boosted sales but also positioned Loftie as a premium product for sleep solutions.

Future Trends in Retail Media Networks

AI in Advertising

Artificial intelligence is revolutionizing how brands use RMNs by enabling advanced capabilities that were once out of reach. 

AI algorithms analyze vast amounts of first-party data from RMNs to identify patterns in customer behavior, such as frequently purchased products or browsing habits. This allows brands to deploy hyper-personalized ads, such as recommending complementary items (e.g., promoting baby toys to shoppers browsing cribs). 

AI also supports real-time ad placement adjustments, optimizing campaigns based on current traffic, time of day, and shopper activity to improve click-through and conversion rates. 

Predictive analytics, powered by AI, helps brands anticipate trends, like seasonal demand spikes, allowing for proactive inventory and budget allocation.

Retailer-Specific Innovations

Retailers are expanding Retail Media Network offerings with innovative formats and integrations designed to reach consumers across diverse channels. 

Walmart Connect has integrated with CTV platforms, enabling brands to deliver ads to streaming audiences who are already in Walmart’s ecosystem. These ads pair seamlessly with in-store promotions, creating a cohesive customer journey. 

Similarly, Target’s Roundel program offers influencer collaborations and interactive video ads, which help brands engage younger audiences on social platforms like Instagram and TikTok. 

Retailers are also exploring immersive ad formats, such as augmented reality (AR), where shoppers can virtually “try on” a product before purchasing it, blending commerce with entertainment.

Maximizing Growth Through Retail Media Networks

For scaling brands, RMNs provide not only an opportunity to connect with high-intent consumers but also a way to redefine their growth trajectory by leveraging precision targeting, rich insights, and collaborative retailer partnerships.

As shoppers demand more personalized, seamless, and relevant experiences, brands must rise to the challenge of meeting these expectations at every stage of the customer journey. RMNs offer the tools to do just that.

Brands that engage with RMNs now have a unique opportunity to shape the future of how they connect with consumers, foster loyalty, and drive sustainable growth.

About the Author: As the Director, Marketing at adQuadrant, Nick Grant leverages more than 20 years of experience working across a variety of tech verticals. Nick grew up in California and earned his BS in Business with a concentration in Entrepreneurship. After college, he relocated to Seattle to pursue his passion for startups, where he worked at various dot-coms before co-founding a successful visual strategy agency in 2010. Now back in California, Nick spends his time hiking around San Luis Obispo County with his wife and son, honing his talent as a concert photographer, and perfecting his handstand skills.

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