Retail media is transforming the way brands reach shoppers, offering highly targeted advertising within retailer ecosystems. But what is retail media, and how does it differ from retail advertising as a whole?
In this blog, we’ll break down what retail media is, how it works, and the key components you need to understand in order to successfully integrate your retail media strategy into your broader marketing plan.
What is retail media?
Retail media is advertising placed directly within a retailer’s ecosystem—on their website, app, or even in-store digital displays—right at the point where customers are shopping. It allows brands to reach consumers with highly relevant ads just as they’re making purchasing decisions, making it one of the most powerful forms of digital advertising today.
Why is retail media important?
As third-party cookies phase out, marketers need new ways to target consumers effectively—enter retail media. At its core, retail media takes advantage of a retailer’s first-party data, which means ads can be targeted based on actual shopping behavior instead of relying on increasingly unreliable third-party tracking.
What this means is that advertisers can benefit from rich levels of consumer data in order to better target customers without actually having access to that data while also allowing advertisers to advertise at the point of purchase. And this, in turn, means better campaigns, better customer journeys, and better ROI.
As online shopping increases and third-party cookies disappear, retail media is rapidly shifting from a niche tactic to a core part of the modern marketing strategy. To capitalize, giants like Amazon and Walmart have invested heavily in their own retail media networks (RMNs).
Retail media vs retail advertising
Marketing is full of overlapping terms, and retail media and retail advertising are often used interchangeably. However, as marketers, it’s important to distinguish between the two.
Retail advertising refers to any advertising that promotes products within a retail environment. This includes both traditional and digital formats, such as in-store ads (posters, shelf displays, digital screens), or sponsored promotions within stores.
In contrast, retail media is a specific type of retail advertising that focuses on digital, data-driven advertising within a retailer’s ecosystem. Largely, this is dominated by the retail media networks that let brands advertise both on and off-site, using the retailer’s first-party data, as described above.
Essentially, retail advertising is a general term covering all promotional activities happening in or around a retailer, while retail media is a subset of retail advertising focused on digital, highly targeted advertising within a retailer’s ecosystem.
Key components of retail media marketing
Retail media marketing consists of several key components that work together to help brands reach high-intent shoppers within retailer ecosystems. Below are the main elements that define this fast-growing space.
Retail media networks
Retail media networks are platforms owned and operated by retailers such as Amazon, Walmart, Target, and Kroger. These networks allow brands to advertise directly within the retailer’s digital or physical environments, ensuring their products appear in front of relevant shoppers. Ad formats include sponsored product listings, display banners, video ads, and email promotions. RMNs provide valuable audience insights and closed-loop attribution, allowing advertisers to see how their ads influence purchases.
Example: Walmart Connect, Amazon DSP.
Third-party retail media platforms
Not all retailers build their own retail media networks from scratch. Some partner with third-party platforms to manage, optimize, and scale their retail media efforts. These external platforms provide brands with tools for ad placement, audience targeting, performance tracking, and measurement across multiple retailers. They help bridge the gap between retailers and advertisers, making it easier to run efficient campaigns across different retail ecosystems.
Example: Criteo, which collaborates with retailers to enable retail media campaigns across multiple sites.
Programmatic ecosystem Integration
Some retail media networks are connected to the programmatic advertising ecosystem, allowing brands to buy ad inventory through demand-side platforms (DSPs). This enables automated, data-driven ad buying, ensuring that brands can target shoppers efficiently across different retail sites and beyond. Programmatic integration increases the scale of retail media campaigns while maintaining precise audience targeting and measurement capabilities.
Together, these components form the foundation of retail media marketing, allowing brands to capitalize on retailers' first-party data and reach shoppers at the moment of purchase.
Retail advertising examples in retail media
Retail media allows brands to place highly targeted retail ads within a retailer’s digital ecosystem, reaching shoppers when they are actively considering a purchase. Below are some key examples of how retail advertising works within retail media platforms.
Sponsored product ads
If a shopper searches for “organic shampoo” on a retailer’s website, a natural hair care brand can place a sponsored product ad at the top of the search results. This ensures the brand’s product is seen first, increasing the chance of a sale. These ads blend seamlessly with organic listings, making them highly effective.
Display and banner ads
Retailers also offer banner ads on category pages, homepage promotions, and even personalized product recommendation sections. For instance, if a shopper frequently buys protein powder, they might see a display ad for a new protein bar brand while browsing their favorite retailer’s website or app.
Video ads & rich media
Some retailers offer video ads within their digital properties, such as product detail pages, checkout pages, or even streaming platforms they own. A brand selling cookware, for example, might place a short recipe video ad on a grocery retailer’s website.
Making your retail media strategy part of your marketing strategy
A retail media strategy isn’t just an add-on—it should be a fully integrated part of your overall marketing plan. As third-party cookies phase out and brands look for more reliable ways to reach high-intent shoppers, retail media offers a powerful, data-driven solution that delivers results at the point of purchase.
By leveraging Retail Media Networks (RMNs) like Amazon and Walmart, or using third-party retail media platforms such as Criteo, brands can optimize ad spend, improve visibility, and track real sales impact. However, retail media works best when combined with paid search, social media, influencer marketing, and organic content strategies to create a seamless omnichannel approach.
To stay competitive, brands must align their retail media investments with their broader marketing goals, ensuring a consistent presence across multiple touchpoints. By doing so, they can maximize conversions, drive brand growth, and make the most of retail media’s unique ability to connect advertising with actual sales.
