As advertising continues to be more competitive, brands are always looking for fresh ways to stand out and connect with their audience. Enter Retail Media. It might be a new term for some, but its promise is straightforward: offering brands a unique way to engage consumers and make a lasting impression. So, what exactly is Retail Media? And more importantly, why should brands be paying attention? In this blog we will explain:
At its core, Retail Media refers to brand advertising within the digital platforms of retailers. This could mean promoted products in search results, sponsored product listings, or even display ads on a retailer's app or website. The primary aim? To influence potential buyers at the most crucial phase of their shopping journey: the point of purchase.
Imagine you're a consumer searching for a hair conditioner on an online retailer's platform. Among the numerous options, a sponsored product catches your eye, bearing a brand you've been curious about. The integration of this advertisement into your shopping experience makes you more likely to consider purchasing the product. This seamless experience is the power of Retail Media.
When we talk about Retail Media Networks (RMNs), we're venturing into a unique blend of AdTech cultivated by retailers themselves.
Essentially, RMNs are comprehensive digital systems encompassing a retailer's various platforms, from primary websites to mobile applications. Through these networks, brands are afforded the distinct opportunity to engage with consumers in a more targeted manner, directly within the context of their shopping environment.
This integration allows for a more informed and consistent interaction with consumers, supporting them throughout their decision-making and purchasing processes.
Though Retail Media might seem new on the advertising block, it's making waves. On average, advertisers are spreading their interests across roughly four RMNs. In fact, over the last year, 27% have transitioned their spending from one RMN to another with many industries and brands expected to increase their ad spending to US$25 billion by 2023.
McKinsey research shows that 73% of advertisers plan to boost their RMN investments in the upcoming year, accounting for 10-15% of their total media budget.
RMNs blur the lines between shopping and advertising, creating seamless interactions that offer brands a clear window into consumer behaviour. As e-commerce continues to evolve, the value of these networks becomes even more critical.
Retail Media can be transformative when done right. It's not just about visibility—it's about building lasting connections through relevance, story, and convenience.
Brands today have access to a wide mix of ad formats tailored for both online and in-store environments.
As demand rises, several major players have led the way in Retail Media innovation:
Retail Media and RMNs are reshaping how brands connect with consumers in the digital era. It’s no longer just about showing up—it’s about showing up meaningfully. Brands that lean into this strategy will be better positioned for sustainable growth and long-term loyalty in a crowded e-commerce world.
Want to know how best to incorporate Retail Media into your marketing strategy? Check out our best practice guide.