A retail media network (RMN) is a proprietary advertising platform created by a retailer that allows brands to purchase ad inventory and market to customers across the retailer’s owned digital and physical channels. Retail media networks give second-and-third-party brands the ability to purchase ad inventory and market to customers across a retailer’s owned channels with an extremely targeted approach. It is similar to in-store advertising, but done digitally and powered by the retailer’s first-party data.
Shoppers are often more receptive to advertisements when they are already on a retailer’s site. The proximity and relevancy of retail media networks provides a convenient way to target customers through customer segmentation throughout their buying journey, and deliver the right offers at the right time. As third-party cookies deprecate and privacy regulations tighten, retail media networks have become one of the fastest-growing ad channels because they rely entirely on consented, first-party purchase and browsing data rather than cookieless tracking workarounds.
Why Retail Media Networks Are Growing
Retail media is projected to exceed $150 billion globally by 2026 (eMarketer, 2024), making it the third-largest advertising channel behind search and social. Several structural trends are driving this growth:
- Privacy-first advertising — With the decline of third-party cookies and stricter consent management requirements, advertisers need channels built on first-party data. Retailers possess deterministic purchase data tied to logged-in shoppers, which is more reliable than probabilistic audience targeting
- Closed-loop measurement — Retail media networks can connect ad impressions directly to purchase transactions, giving brands attribution clarity that open-web advertising cannot match. This closed loop improves return on ad spend measurement significantly
- High purchase intent — Shoppers browsing a retailer’s site or app are already in buying mode, resulting in higher conversion rates compared to awareness-stage display ads
Benefits of Retail Media Networks for Retailers
For retailers, retail media networks do more than drive incremental sales; they also create a new, highly profitable revenue stream through data monetization of owned first-party data. With the right customer data and insights, retailers can offer targeted advertising that benefits both themselves and their customers, leading to increased customer loyalty and brand advocacy.
Many retail media networks allow retailers and their suppliers to share customer data in a privacy-focused way through data clean rooms. As a result, retail media networks give retailers access to vast amounts of customer insights that help them better understand their customers.
Even stores that are traditionally brick and mortar have benefited by creating new and exciting touch points for customers who prefer to shop online. Brands can do this in a number of ways:
- Digital Shopping Experiences. Digital ad placements on owned web and mobile app properties open up new ways to personalize customer experiences through programmatic advertising with hyper-relevant content and product promotions.
- Brick-and-Mortar Experiences. Retail media networks extend beyond just display advertising channels, as digital media begins to proliferate in-store locations. With geolocation and transactional data, retailers and partner brands can optimize promotion based on shopping behavior and demand across specific regions or store locations.
- Omnichannel Experiences. With connected customer data, retailers can orchestrate seamless customer journeys that tap into individual buying behaviors through omnichannel marketing strategies.
- Campaign Optimization. Brands are able to leverage inventory on retail media networks to test ads, see what works, and who it reaches. Once brands receive access to this data, they can scale successful creative campaigns and measure return on ad spend more effectively.
How CDPs Power Retail Media Networks
Customer data platforms are the data foundation that makes retail media networks effective. Without a CDP, the first-party data that gives retail media its competitive advantage remains siloed across e-commerce platforms, loyalty programs, point-of-sale systems, and mobile apps.
A CDP unifies these sources into persistent customer profiles through identity resolution, connecting anonymous browsing sessions to known purchasers across devices and channels. This unified view enables retail media networks to offer advertisers audience segments based on actual purchase history, browsing patterns, and loyalty status — not just demographic proxies.
CDPs also enable retailers to build and monetize audience segments at scale. Instead of offering brands simple demographic targeting, a CDP-powered retail media network can offer segments like “customers who bought organic products three times in the past 90 days” or “lapsed shoppers who haven’t purchased in six months.” These behavioral segments deliver higher conversion rates for advertisers and higher CPMs for retailers.
For privacy compliance, CDPs centralize consent management across all data sources, ensuring that only consented customer data flows into retail media targeting. This is critical as retailers expand their media networks across regions with different privacy regulations. The CDP acts as the governance layer between raw customer data and the advertising platform, enforcing consent preferences and data usage policies automatically.
FAQ
What is the difference between a retail media network and traditional digital advertising?
Retail media networks use a retailer’s own first-party data and owned channels, while traditional digital advertising relies on third-party data across the open web. Retail media offers closed-loop measurement linking ads to actual purchases, whereas open-web ads depend on probabilistic attribution. This first-party data advantage makes retail media more precise and privacy-compliant.
How do CDPs help retailers build retail media networks?
CDPs unify siloed customer data from e-commerce, loyalty, and in-store systems into targetable audience profiles that power retail media ad targeting. Without a CDP, purchase history, browsing data, and loyalty information remain disconnected. The CDP’s identity resolution connects these signals into unified profiles, enabling behavioral audience segments that advertisers pay premium CPMs to reach.
Why are retail media networks growing so quickly?
Privacy regulations and cookie deprecation are shifting ad budgets toward channels built on consented first-party data, which retailers possess at scale. Retail media also offers closed-loop attribution — connecting ad impressions directly to in-store and online purchases. These structural advantages have made retail media the fastest-growing digital ad channel, projected to exceed $150 billion globally by 2026.
Related Terms
- Ad Exchange — Marketplace infrastructure that powers programmatic retail media buying
- Supply-Side Platforms (SSPs) — Tools retailers use to manage and sell their media inventory
- Demand-Side Platforms — Platforms brands use to purchase retail media ad placements
- Data Monetization — Strategy for retailers to generate revenue from their first-party customer data