What is a retail media network?
A retail media network is a platform managed by a retailer or third-party publisher that displays ads using the retailer’s first-party shopper data. These networks span various channels, such as retailer websites, mobile apps, streaming services, and email campaigns. They also include physical stores and partner platforms, like social media and digital billboards.
Who’s in the game?
Retail media networks are run by digital-first retailers (e.g., Amazon), marketplaces (e.g., eBay), mass merchandisers (e.g., Costco), grocery chains (e.g., Kroger), department stores (e.g., Macy’s), category specialists (e.g., The Home Depot), and delivery services that support retailers (e.g., Instacart).
The pressure on agencies and brands
Retail media networks (RMNs) are becoming a dominant force in advertising, but many brands don’t realize how their budgets are allocated without their knowledge. Agencies are increasingly pressured to funnel client money into RMNs, often due to incentives that don’t align with the brand’s best interests. Major players like Amazon, Walmart, and Target are pushing for significant budget commitments, creating unease in the industry.
Who benefits?
Are brands actually benefiting from this? Or are they just playing along in a system where their media buys are more about hitting quotas than delivering results? With over 200 RMNs out there, it’s becoming harder to tell what’s really going on. Agencies that once focused solely on buying media for clients are now selling it as well. But here’s the kicker—brands often have no clue that these deals are happening. This leads to major conflicts of interest. You think your ad spending is being optimized, but is it just about meeting a secret target?
Why it matters?
When brands don’t have clear insight into where their money is going, everyone loses. The whole system is full of hidden incentives, undisclosed rebates, and questionable measurement practices. As retail media networks are expected to take up 20% of U.S. ad spend by 2027, brands must be vigilant and demand transparency.
It’s time to ask tough questions and take control of your ad spend. Without clear insight, you could be funding someone else’s gain.
