The Rise of Retail Media Networks in Grocery: Unlocking New Revenue Streams
The grocery sector is experiencing a profound digital transformation, reshaping not only how consumers shop but also how grocers generate revenue. Among the most significant innovations is the emergence of retail media networks (RMNs)—platforms that enable grocers to monetize their digital assets and first-party data by offering targeted advertising opportunities to consumer packaged goods (CPG) partners. As digital channels become central to the grocery experience, RMNs are unlocking high-margin, incremental revenue streams that were previously out of reach for traditional supermarkets.
Why Retail Media Networks Are Booming in Grocery
Grocery retail is uniquely positioned to capitalize on the RMN opportunity. Unlike other sectors, grocers interact with customers frequently, collecting rich, first-party data across both digital and physical touchpoints. This data—spanning online orders, loyalty programs, in-store purchases, and mobile app interactions—provides a comprehensive view of shopper behavior, preferences, and intent.
As grocers invest in unified commerce platforms and omnichannel engagement, they are able to aggregate and activate this data at scale. The result is a powerful closed-loop ecosystem where CPG brands can reach shoppers with highly relevant, personalized offers at the point of decision—whether online, in-app, or in-store. For grocers, this means the ability to generate new revenue from their digital real estate, while enhancing the customer experience with more relevant content and promotions.
The Building Blocks: Data, Platforms, and Omnichannel Engagement
The success of a retail media network in grocery hinges on three foundational elements:
- 1. First-Party Data:
Grocers’ loyalty programs, e-commerce platforms, and in-store technologies generate vast amounts of first-party data. By unifying this data into a single customer view, grocers can offer CPG partners precise audience targeting and robust measurement capabilities. For example, a leading US grocery chain partnered with Publicis Sapient to build a digital marketing platform that links myriad data sources across the enterprise, enabling CPGs to run campaigns on owned channels and measure real-time performance. This approach led to a 25% increase in conversion and a 75% faster campaign curation process.
- 2. Unified Commerce Platforms:
Modern, API-driven commerce platforms are essential for managing inventory, pricing, promotions, and advertising across all channels. These platforms provide the flexibility to deploy new RMN features—such as programmatic ad placements, sponsored search, and personalized offers—without disrupting core operations. Leading grocers have leveraged these platforms to scale their RMN offerings rapidly, integrating digital shelf, mobile, and in-store experiences.
- 3. Omnichannel Customer Engagement:
The most effective RMNs reach customers wherever they shop. By connecting digital and physical touchpoints, grocers can deliver consistent, personalized advertising—whether a shopper is browsing online, using a mobile app, or walking the aisles. This omnichannel approach not only increases the value of RMN inventory for CPGs but also drives higher engagement and loyalty among shoppers.
Measurable Business Impact: Real-World Results
The business impact of retail media networks in grocery is both immediate and significant. Grocers who have embraced RMNs are seeing:
- High-margin, incremental revenue: One major US supermarket chain, with Publicis Sapient’s support, built a bespoke RMN that generated $100 million in annual media revenue within three years, setting the stage for a billion-dollar business line.
- Enhanced customer experience: By leveraging first-party data, grocers deliver more relevant offers and content, increasing satisfaction and loyalty. For example, a leading grocer’s digital transformation resulted in a 25% increase in conversion and a 4x increase in data processing volume, benefiting both the business and its CPG partners.
- Closed-loop measurement: RMNs provide CPGs with real-time insights into campaign performance, enabling continuous optimization and clear attribution of sales to media spend.
Best Practices for Launching and Scaling Retail Media Networks
Drawing on Publicis Sapient’s experience with leading grocers worldwide, several best practices have emerged for successfully launching and scaling RMNs:
- 1. Start with a Unified Data Foundation:
Invest in a customer data platform (CDP) that aggregates data from all channels and touchpoints. This enables precise audience segmentation, targeting, and measurement—critical for attracting CPG ad spend.
- 2. Build Flexible, API-Driven Platforms:
Adopt modern, cloud-based commerce and marketing platforms that support rapid deployment of new RMN features. Microservices architectures allow for continuous innovation without disrupting core grocery operations.
- 3. Prioritize Omnichannel Integration:
Ensure that RMN offerings span digital and physical environments. Integrate digital shelf, mobile, and in-store media to maximize reach and relevance.
- 4. Deliver Closed-Loop Reporting:
Provide CPG partners with transparent, real-time reporting on campaign performance, including sales attribution and customer engagement metrics. This builds trust and drives repeat investment.
- 5. Foster a Culture of Continuous Innovation:
Embrace agile methodologies and cross-functional teams to iterate quickly, respond to market feedback, and scale successful RMN initiatives across the business.
Publicis Sapient: Your Partner in Grocery RMN Transformation
With decades of experience in digital business transformation and a proven track record in grocery, Publicis Sapient is uniquely positioned to help grocers unlock the full potential of retail media networks. Our end-to-end approach—spanning strategy, technology, data, and experience—enables grocers to monetize their digital assets, drive incremental revenue, and deliver shopper-first experiences that build long-term loyalty.
Ready to transform your grocery business and capture the RMN opportunity? Connect with Publicis Sapient to discover how we can help you build, launch, and scale a retail media network that delivers measurable impact for your business and your CPG partners.