Retail Media Networks (RMNs) are changing how retailers make money from advertising. These networks let retailers sell ad space on their websites, apps, and in-store screens to brands. Major retailers like Walmart and Target now earn significant revenue by letting brands advertise directly to shoppers using the retailer’s own customer data.
This booming industry is worth over $100 billion because it offers something unique: the ability to reach customers right when they’re ready to buy. For shoppers, this means more relevant product recommendations. For brands, it means getting their products in front of the right customers at the right time.
This guide shows you how to build and run a successful retail media network that works for your business, your brand partners, and your customers.
What Are Retail Media Networks (RMNs)?
Think of a Retail Media Network as a retailer’s own advertising platform. It lets retailers earn money by showing ads across three main places: their website, their mobile app, and their physical stores. When you shop at major retailers like Kroger or Target, the ads you see while browsing their website or walking through their stores are part of their retail media network.
The real power of RMNs comes from the retailer’s customer data. When a retailer knows what their customers like to buy, they can show them more relevant ads and product suggestions. This helps both shoppers and brands – shoppers see products they’re actually interested in, while brands reach the right customers.
Here’s why retailers are excited about RMNs:
- They create a new source of profit that’s separate from just selling products
- They improve the shopping experience by showing customers relevant products and deals
- They help retailers compete with online marketplaces like Amazon
Why Should You Care About Retail Media Networks?
💰 New Revenue Streams
- Earn money by selling advertising space to brands
- Create additional income beyond traditional product sales
- Generate revenue even during slower shopping periods
🎯 Better Customer Experience
- Show relevant product information when customers need it
- Help shoppers find deals and promotions easily
- Reduce perceived wait times at checkout with engaging content
📊 Smarter Business Decisions
- Gather data about which products interest your customers
- Understand shopping patterns in your store
- Measure the effectiveness of different promotions
Digital Signage: The Backbone of Retail Media Networks
Dynamic digital signage is the driving force behind RMNs, enabling impactful, real-time advertising and engagement on owned media channels. This is no longer your static retail digital signage anymore.
Roles of Digital Signage in Retail Media Networks:
- Data Integration: Leverages first-party data (e.g., loyalty programs and sales analytics) to craft precise, hyper-targeted campaigns.
- Enhanced Metrics: Tracks performance metrics like dwell time, conversion rates, and ad impressions to optimize campaigns.
- Multi-Functionality: Beyond advertising, digital displays serve as wayfinding tools and information hubs, adding utility for shoppers.
Major players like Walmart Connect and Home Depot, use digital signage within their RMNs to create immersive shopping experiences while maximizing ad revenue for participating brands.
Need Help Getting Started?
Key Benefits of Retail Media Networks
RMNs combine cutting-edge technology with shopper-centric strategies to deliver these key advantages:
- New Revenue Streams: Retailers sell ad space to brands, generating additional income and boosting in-store sales through targeted promotions.
- Improved Shopper Engagement: Interactive and visually appealing content captures attention, keeps shoppers in-store longer, and drives product interest.
- Data-Driven Precision: Using first-party data, RMNs personalize ads to resonate with specific demographics, maximizing impact.
- Future-Proofing Retail Spaces: By mimicking online shopping’s personalization and interactivity, RMNs help brick-and-mortar stores stay relevant in the digital age.
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
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.
Conclusions
Retail Media Networks, are revolutionizing the retail experience by combining the power of digital signage, data-driven advertising, and shopper engagement.
With benefits ranging from increased revenue to enhanced in-store experiences, RMNs help retailers future-proof their business in a competitive landscape. By starting small, leveraging data, and staying adaptable to trends, retailers can unlock the full potential of RMNs and drive meaningful results.
Contact an experienced digital signage consultant to explore customized strategies that maximize shopper engagement and ad revenue.
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.
