Retail Media Networks (RMNs) are the latest shiny object in the advertising world.
They're not new, but they've certainly evolved.
Gone are the days when "retail media" just meant endcap displays at Target or a retailer coupon at the checkout aisle. Modern RMNs are powered by a valuable asset: shopper data.
And that’s where things get interesting ... and a little tricky.
What is a Retail Media Network?
At its core, a retail media network is an advertising platform owned and operated by a retailer (think Walmart Connect, Roundel from Target, or Amazon Ads). It allows brands to use that retailer’s first-party shopper data to target customers both on and off the retailer’s website or app.
On-site ads – Sponsored product placements, homepage takeovers, search results.
Off-site ads – Retargeting past customers programmatically wherever they are online or streaming.
In-store extensions – Digital screens, shelf talkers, and even those little “you might also like” prompts on your grocery app.
The promise is compelling: “We know who’s shopping with us, and we can help you reach them right before they check out.”
But here’s the problem: many RMNs measure total sales, not true incremental lift.
Off-Site Ads: Beyond Social Media — Why Programmatic Matters
When people think of retail media, they tend to picture ads on the retailer’s site. But the real power of RMNs lies in off-site targeting, and it goes way beyond just Meta and Google.
Modern RMNs let you use that valuable shopper data across the open web, including:
Connected TV (CTV) – Serving targeted ads to shoppers while they’re watching Hulu, Peacock, or any other streaming platform.
Online Video (OLV) – Precision-targeted video ads on YouTube and beyond.
Programmatic Display Ads – Banner ads, native ads, and dynamic creative served across major ad exchanges.
Audio and Podcasts – Serving ads to targeted audiences while they’re listening to Spotify or podcasts.
Here’s where it gets even more strategic: platforms like The Trade Desk (which is our primary DSP) have exclusive agreements with some retail media networks.
That means you can target specific shopper segments using first-party retailer data, but deliver those ads programmatically. Ads don't just run on social platforms, but across the entire digital ecosystem.
This is a game-changer because:
You’re not limited to crowded platforms like Meta and Google.
You can reach shoppers where they’re spending real time, like on CTV or YouTube, in a less saturated environment.
You can control frequency, format, and creative strategy at a much more granular level.
Frankly, an ad on Hulu that’s been dynamically served based on recent shopper behavior is going to hit harder than an ad on a crowded platform like Instagram.
This is why we view programmatic as an outstanding lever for driving actual incremental sales. It’s not just about catching a customer at the shelf anymore, it’s about influencing behavior across the full shopping journey.
Why That’s a Problem
Retailers are essentially grading their own homework. And, they’re using a pretty generous curve.
When you advertise through an RMN, they’ll usually report on “total sales.”
Sounds good, right?
Sales are up, ads are working, mission accomplished.
Not so fast.
The missing piece is incrementality — knowing whether those sales would have happened anyway, even without the ad spend.
RMNs are notoriously weak on this because they:
Include organic sales in the results (someone who was already going to buy that product counts as an RMN “win”).
Target lapsed customers who weren’t actually lapsed (they may have come back anyway).
Are not really scaleable: Most shopper data segments are not large and you can’t invent additional segment customers.
This is where things get murky. Retailers want to take credit for everything.
If someone buys your product, the RMN will gladly tell you it was because of their ad, even if that shopper was already loading up their cart with your product before the ad ever ran.
RMN Spending Is Skyrocketing — But At What Cost?
According to eMarketer, US retail media ad spending will increase by 88.5% between 2024 and 2028 — growing from about $52 billion today to nearly $98 billion!
That sounds like great news for the advertising industry, but it’s not that simple. This isn’t new money.
It’s shifted money.
Marketing budgets aren’t getting larger, they’re just getting reallocated toward retail media networks.
That means other effective media tactics, like out-of-home (OOH), TV, and streaming, are losing budget.
RMNs have high minimums and their data costs are often much higher than other audience segments (including other shopper segments from companies like InMarket)
And that’s a problem.
OOH, for example, remains one of the best tools for driving broad awareness and creating long-term brand equity, especially for newer brands.
But since OOH doesn’t sit within the framework of a retail media network, it’s often the first to get cut.
That’s a mistake.
And there’s another layer of pressure here: if you don’t invest in a retailer’s media network, will you get less shelf space? Less love from the retailer?
It creates a subtle but very real “pay to play” pressure and that’s never a good thing.
Our Take: RMNs Are Useful, But Not Always the Best Bet
Don’t get us wrong, retail media networks have their place and we definitely use them for our clients.
If you need to increase shelf velocity or protect your brand from competitors, RMNs can be effective.
If you are regionally distributed and hoping for more sales, using an RMN to increase performance may have really great long-term results.
But: they’re not a silver bullet, and they often come with inflated results.
How We Approach It:
We don’t just rely on RMN reporting. We use third-party data and external lift studies to measure true incrementality. If sales would have happened anyway, we want to know that.
We balance RMN spend with broader media strategies. Sometimes the better move is investing in upper-funnel tactics like streaming or Meta ads to drive new customer acquisition instead of spending heavily on RMNs, which often just capture existing demand.
We optimize RMN spend, not over-rely on it. RMNs can be effective for in-market shoppers, but driving long-term growth requires more than just conquesting shelf space.
The rise of retail media networks is an exciting shift in how brands can reach shoppers.
But, they’re not a free pass to higher sales.
You have to be smart about how you allocate spend, how you measure success, and how you define a win.
Retail media networks want to own your entire budget, but you don’t have to give it to them.
The brands that win will be the ones that know when to push the gas and when to pivot.
Want to learn more about how to reach shoppers in a meaningful way, let's chat!
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