It’s not an exaggeration to suggest that retail media is creating the biggest shift in digital advertising since programmatic became a thing. It’s rising so quickly that by 2027, emarketer projects that retail media will come within striking distance of Social to become the second largest marketing channel in terms of ad spend. That’s remarkable considering how the channel has only been around for several years.

What is Retail Media?

In the past few years you may have noticed ad space pop up on retailer websites such as Amazon or Walmart. They’re usually sponsored product placements that are included in search results or featured on a specific product listing. This ad inventory and the data that is used to fill them are called retail media.

One thing brands like so much about retail media is that these ad placements are very close to a point of purchase. When consumers are in full purchase mode, brands have a new opportunity to get their products in front of them.

But it’s not just about the ad placement. Advertisers using retail media get access to a retailer’s anonymized search and purchase data. This means they can serve highly relevant ads, knowing more about a user’s specific product interest and whether or not they’ve already purchased it. Interestingly, this data can also be used on ads running elsewhere on the internet so campaign impressions are not limited by the amount of traffic a retailer has on their own site.

What are Retail Media Networks?

Retail Media Networks or RMNs are the retailer’s assets including ad inventory on their e-commerce website or app and their first-party data including but not limited to purchase data, that they make available to brands & agencies to serve ads with. Amazon’s website and app that host multiple types of ad space alongside product search results for example, are an RMN. 

RMNs are not strictly limited to retailers, however. They may be hosted by a third-party publisher on a retailer’s behalf or they may be deployed on another commerce-driven  service, like Instacart, Marriott or Uber Eats. The term Commerce Media is used to more broadly describe these networks.

Why is Retail Media Important?

As third-party cookie deprecation continues, advertisers need reliable sources of First-Party Data. For the uninitiated, that’s data collected with user consent, giving the retailer permission to use it. The consumers in question have agreed to share their data for advertising purposes, usually in the process of registering for a profile with a retailer or service.  

Not only does retail media give advertisers a privacy-friendly solution, but it also offers purchase data that gives a more accurate picture of what a consumer is looking for.