Retail Media’s growth is undeniable - but many networks aren’t keeping up.
Retail media networks (RMNs) have become one of the strongest forces in digital advertising. In 2023, global retail media ad spending reached £89.2 billion, accounting for more than 10% of digital advertising. By 2027, this figure is expected to climb to £127 billion, solidifying retail media’s role as a high-margin revenue driver for retailers.
Yet, despite this growth, many RMN’s struggle to deliver real value. Challenges such as fragmented technology, data silos, and inefficient operations often prevent retailers from unlocking the full potential of their networks. Advertisers, in turn, are left questioning their investment.
What separates high-performing RMNs from those that fail to meet expectations? The answer lies in a unified, data-driven and omnichannel approach.
What’s Holding RMNs Back?
- Operational inefficiencies impact revenue
Many retail media networks underestimate their return on ad spend (ROAS) due to measurement gaps. One of the most overlooked factors is the “halo-effect” - the influence an ad has on purchases made outside a retailer's ecosystem. Without proper measurement, advertisers struggle to see the full impact of their campaigns, leading to lower trust and reduced investment.
- A narrow approach to first-party data
Retailers have long positioned first-party data as a competitive advantage. However, data accessibility remains a challenge, with many retailers failing to structure their data in a way that brands can easily activate. Relying solely on first-party data also limits campaign effectiveness, as it provides historical insights but lacks context on broader customer behaviour and intent.
- The ‘frankenstack’ effect - disjointed tech slows performance
Many RMNs rely on a patchwork of disconnected systems, forcing advertisers and retailers to work across multiple platforms to plan, execute, and measure campaigns. This fragmentation leads to inefficiencies, slow reporting, and inconsistent messaging across on-site, off-site, and in-store channels. In some cases, campaign rollout times are delayed by 25%, resulting in lost revenue opportunities.
How Retailers Can Build High-Performing RMNs
Leading RMNs overcome these challenges by focusing on three core areas:
- Unified Platforms Drive Efficiency
Retailers that centralize their media operations see up to a 40% reduction in campaign setup times and a 20% increase in ROAS. A single-platform approach ensures seamless campaign execution across all channels, delivering a better experience for advertisers and customers alike.
- Smarter Data Strategies Improve Targeting
Combining first-, second-, and third-party data enables retailers to move beyond purchase history and understand why customers buy. This results in more precise audience segmentation and higher-performing campaigns.
- AI & Automation Elevate Personalization
Generative AI is redefining personalization at scale, optimizing budgets and dynamically adjusting ad creative in real-time. Early adopters of AI-driven strategies have seen click-through rates increase by 41% and email performance improve by 25%.
Retail Media is No Longer a ‘Nice-to-Have’—It’s a Competitive Advantage
Retailers that embrace technology integration, smarter data use, and AI-driven efficiencies will lead the next wave of retail media growth. The opportunity is clear: those who act now will not only drive new revenue but set the standard for the industry.
For a deeper dive into the strategies powering high-performing RMNs, download the full whitepaper here.
