Retail media networks are flipping the script on how retailers make money from advertising. Instead of relying on outside ad platforms, retailers are turning their own websites, apps, and in-store screens into prime ad real estate. Brands love it because they get to reach shoppers using first-party customer data. Retailers love it because it’s a new revenue stream that keeps growing.
Big names like Walmart, Target, and Kroger are already cashing in, and the industry has passed the $100 billion mark for a reason. RMNs give brands a chance to reach people when they’re most ready to buy, and that’s a game-changer.
In this guide, we’ll walk you through how to build a retail media network that works for your business, adds value for your brand partners, and actually enhances the shopping experience for your customers.
What Are Retail Media Networks (RMNs)?
A Retail Media Network is a retailer’s own advertising platform. It helps retailers make money by showing ads in three main places:
- Their website: Including banner ads, sponsored search results, and product listings
- Their mobile app: Featuring sponsored products, display ads, and special offers
- Their physical stores: Using digital screens, shelf displays, and interactive kiosks
When you’re browsing Target’s website, searching for products on Kroger’s app, or walking through Home Depot and spot a screen with an ad—that’s the retail media network at work.
The real magic behind RMNs is the customer data. Retailers know what their shoppers buy, how often they shop, and what catches their attention. That means they can serve up ads and product suggestions that actually make sense.
Shoppers see more relevant options. Brands get their products in front of the right people. Everyone wins.
Here’s why retailers are excited about RMNs:
- They create a new way to make money beyond just selling products
- They improve the shopping experience with relevant products and deals
- They help physical stores compete better against online marketplaces like Amazon
- They offer an alternative to social media and search ads
Why Should You Care About Retail Media Networks?
New Ways to Make Money
- Earn money by selling advertising space to brands
- Create ongoing income beyond just product sales
- Build a steady income source even during slower shopping periods
- Tap into the growing amount brands spend on retail media ads, expected to reach $150 billion worldwide by 2026
Better Customer Experience
- Show relevant product information when customers need it
- Offer personalized deals based on shopping history
- Make waiting in line feel shorter with engaging screen content
- Help customers discover new products through sponsored recommendations
Smarter Business Decisions
- Learn more about what customers like and want
- Understand shopping patterns in stores and online
- Measure how well promotions work
- Track whether ads actually lead to purchases
Digital Signage: The Backbone of Retail Media Networks
While online opportunities get a lot of attention, digital screens form the backbone of in-store retail media networks. These aren’t just static signs anymore – they enable real-time, targeted advertising.
How Digital Screens Help Retail Media Networks:
- Using Customer Data: Uses loyalty program info and purchase history to show the right ads to the right people
- Measuring Results: Tracks important things like how long people look at ads and whether they buy the advertised products
- Multiple Uses: Beyond just ads, screens can help with store navigation and share helpful information
- Working with Online Ads: Connects messages between online ads, social media, and in-store promotions
Big retailers like Walmart, Target, and Home Depot use advanced digital screens to create better shopping experiences while delivering results for the brands that advertise with them.
Need Help Getting Started?
Key Benefits of Retail Media Networks
Good retail media networks combine technology with customer-focused strategies to deliver these key benefits:
In Retail Stores:
- New Income: Make money from advertising alongside regular sales
- Better Customer Understanding: Learn more about how people shop
- More Store Visitors: Bring more shoppers into stores through targeted deals
- Stronger Brand Relationships: Build better partnerships with the brands you sell
For Brands:
- Better Targeting: Reach specific customer groups based on actual purchases
- Clear Results: Track whether ads lead to product sales
- Less Wasted Ad Spending: Avoid showing ads to people who aren’t interested
- Connected Experiences: Keep messaging consistent between online and in-store
For Shoppers:
- Finding Relevant Products: Discover new products that match your interests
- Timely Deals: Get discounts when they matter most during shopping
- Better Store Experience: Enjoy more engaging, helpful store environments
- Personalized Suggestions: See products picked for your preferences
How to Set Up a Retail Media Network
Before diving into implementation, you’ll need these essential building blocks:
Technology Foundation
- Digital Display Options:
- System-on-Chip (SoC) displays for simpler setups
- External media players for advanced features
- Content management system (CMS)
- Analytics and reporting tools
Data Infrastructure
- Key data sources to leverage:
- Point-of-sale transactions
- Loyalty program insights
- Store traffic patterns
- Customer demographics
- Purchase history
Revenue Strategy
- Advertising options:
- Premium store locations
- Homepage takeovers
- Category sponsorships
- Dynamic product promotions
- Seasonal campaigns
Implementation Checklist: Making It Happen
- Plan Your Strategy
- Set clear business goals (revenue targets, engagement metrics)
- Map out the best spots for digital displays
- Create your initial budget
- Get key stakeholders on board
- Choose Your Tech
- Select and test display hardware
- Pick your content management system
- Make sure your network can handle the load
- Set up analytics tools
- Build Your Content Plan
- Write content guidelines
- Create pricing packages for advertisers
- Design basic ad templates
- Plan your promotional calendar
- Train Your Team
- Train staff on basic system use
- Set up troubleshooting procedures
- Create maintenance schedules
- Establish who handles what
Pro Tip: Start with a pilot in one or two stores. It’s easier to fix problems and make improvements before rolling out to all locations.
Maximizing Your Retail Media Networks
What Works
- Placing screens at eye level
- Showing a mix of ads and helpful content
- Regular content updates
- Clear pricing for advertisers
What Doesn’t Work
- Overwhelming customers with too many screens
- Running the same content all day
- Placing screens in low-traffic areas
- Complex advertising packages
Sustainability Initiatives
Environmental consciousness is reshaping retail media approaches:
- Energy-efficient digital display solutions
- Eco-friendly hardware with longer lifecycles
- Reduced paper waste through digital alternatives
- Carbon footprint tracking for comprehensive ad campaigns
- Green messaging that resonates with environmentally conscious consumers
Expert Insight: “The winners in retail media will be those who master both technology and trust. Look for solutions that balance innovation with customer privacy and environmental responsibility while delivering measurable results for all stakeholders.”
Challenges Facing RMNs
Even successful retail media networks face significant hurdles. Here’s what retailers need to watch out for:
Market Competition
The retail media landscape is dominated by giants like Amazon and Walmart, who together control over 50% of the market. For smaller retailers, this means:
- Having to offer competitive pricing to attract advertisers
- Needing unique selling points to stand out
- Finding specific niches or audience segments to target
The Investment Hurdle
Starting a retail media network requires substantial upfront costs:
- Ad platform technology: $500K – $2M
- Data management systems: $200K – $1M
- Skilled team members: $300K+ annually
- Analytics tools and dashboards: $100K+ annually
Measurement & Standards
One of the biggest headaches for brands is the lack of consistent measurement across different retail media networks:
- Each network uses different metrics
- ROI calculations vary widely
- No industry-wide performance benchmarks exist
Privacy & Trust
Modern consumers are increasingly privacy-conscious, creating new challenges:
- 76% of shoppers want control over their data
- Privacy regulations like GDPR and CCPA require strict compliance
- Retailers must balance personalization with privacy
Pro Tip: Success in retail media isn’t just about technology – it’s about building trust. Start with clear privacy policies and transparent data practices. Consider appointing a dedicated privacy officer to oversee data management and compliance.
Future Trends in RMNs
The retail media landscape is evolving rapidly. Here are the game-changing trends shaping its future:
AI Takes Center Stage
Artificial intelligence is revolutionizing how retail media works:
- Real-time personalization of ads based on shopping behavior
- Smart inventory management tied to ad campaigns
- Automated optimization of ad placements and timing
- Predictive analytics for better campaign performance
The Rise of Connected Commerce
Shopping is becoming truly seamless across all channels:
- Ads that follow shoppers from website to store
- Mobile app notifications that sync with in-store displays
- Interactive digital screens that connect to online carts
- Unified measurement across physical and digital touchpoints
Smarter, Faster Technology
The next wave of innovation focuses on efficiency:
- Programmatic advertising that adjusts in real-time
- Edge computing for faster ad delivery
- Enhanced targeting using multiple data sources
- Automated campaign optimization and reporting
Sustainability Takes Priority
Environmental consciousness is reshaping retail media:
- Energy-efficient digital displays
- Eco-friendly hardware solutions
- Reduced paper waste through digital alternatives
- Carbon footprint tracking for ad campaigns
Expert Insight: The winners in retail media will be those who master both technology and trust. Look for solutions that balance innovation with customer privacy and environmental responsibility.
Top Retail Media Networks to Watch
Several retail media networks stand out for their innovation:
- Walmart Connect: Uses the retailer’s huge scale with in-store, online, and off-site advertising
- Amazon Ads: The pioneer in retail media, offering sponsored products, display ads, and video
- Target Roundel: Combines rich customer data with multi-channel capabilities
- Kroger Precision Marketing: Uses purchase data for highly targeted campaigns
- Home Depot Retail Media+: Focuses on DIY and professional customers
- Instacart Ads: Connects food brands with grocery shoppers in real-time
- Albertsons Media Collective: Specializes in grocery-specific targeting
Conclusions
Retail media networks are changing the game. By blending in-store screens, data-driven ads, and personalized shopping experiences, they give retailers a powerful way to connect brands with shoppers who are ready to buy. And as traditional digital advertising gets tougher, RMNs offer a smarter, more direct path to revenue.
From boosting ad dollars to improving the in-store experience, RMNs help retailers stay competitive and future-ready. The key is starting with a clear strategy, using customer data responsibly, and staying flexible as trends evolve.
Curious what a retail media network could do for your business? Let’s build a plan that drives engagement and turns your screens into a serious revenue stream.
FAQ
How much does it cost to implement a basic Retail Media Network?
A basic RMN implementation typically costs between $50,000-$100,000 for a mid-sized store, including digital displays, software, and initial setup. Costs vary based on factors like number of screens, software sophistication, and integration requirements. Larger retailers should expect higher investments for enterprise-level solutions.
Can small retailers compete with large retail media networks like Walmart and Amazon?
Yes, smaller retailers can successfully compete by focusing on their unique advantages. Local retailers often have stronger community connections and more detailed customer insights. They can offer brands highly targeted advertising opportunities to specific demographics or neighborhoods. Success comes from emphasizing quality over quantity and leveraging detailed customer knowledge for precise targeting.
What's the typical ROI timeline for a new RMN?
Most retailers see initial ROI within 12-18 months of implementing an RMN. Early revenue comes from brand advertising partnerships, while long-term returns are driven by increased shopper engagement and sales lift. Success metrics include advertising revenue, increased basket size, and improved customer retention rates.
