The holiday season is the most critical period for retailers and consumer products (CP) companies, with digital traffic and transaction volumes reaching their annual peak. Yet, as the cost of customer acquisition rises and margins remain under pressure, leading organizations are looking beyond traditional sales to unlock new revenue streams. Enter retail media networks—a fast-growing, high-impact opportunity to monetize digital and omnichannel traffic, especially during the holidays, by transforming retailer-owned digital real estate into valuable advertising platforms for brands.
Retail media networks allow retailers to leverage their digital assets—websites, apps, loyalty programs, and even in-store screens—to offer advertising opportunities to CP brands and third-party sellers. This model is not just a nice-to-have; it is rapidly becoming a core pillar of profitability. For many retailers, retail media can drive 1-5% of total revenues as incremental, high-margin income, providing a much-needed boost in a margin-constrained environment. During the holiday season, when site traffic and app engagement surge, the value of these advertising placements increases exponentially.
Retailers with significant digital traffic—often those with 10 million or more monthly unique visitors—are particularly well-positioned to benefit. The ability to offer targeted, data-driven advertising to brands at the point of purchase, or even earlier in the discovery journey, is a compelling proposition. For CP brands, retail media networks offer a way to reach high-intent shoppers, influence purchase decisions, and access closed-loop measurement that is difficult to achieve on traditional ad platforms.
The success of a retail media network hinges on its ability to attract and deliver value to brand partners. Brands are increasingly seeking alternatives to traditional digital advertising, especially as third-party cookies are phased out and privacy regulations tighten. Retailers can offer brands access to rich first-party data, high-quality audiences, and the ability to activate campaigns close to the point of sale.
To stand out, retailers should:
The true power of retail media networks lies in their ability to leverage first-party data for precise targeting and personalization. Retailers have a unique view of customer behavior across digital and physical channels, including purchase history, browsing patterns, loyalty status, and more. By integrating this data into their media offerings, retailers can help brands reach the right shoppers with the right message at the right time.
This data-driven approach not only improves campaign performance but also enhances the customer experience. Shoppers are more likely to engage with relevant, personalized offers—especially during the holidays, when they are actively seeking inspiration and deals. Retailers that invest in modern data infrastructure, composable architectures, and advanced analytics will be best positioned to deliver on this promise.
Retail media networks are most effective when integrated into a broader commerce ecosystem that includes marketplaces and omnichannel experiences. As retailers expand their online marketplaces, they create more opportunities for brands and third-party sellers to participate in retail media programs. Sponsored product listings, brand stores, and targeted promotions can all be monetized, driving incremental revenue for the retailer and visibility for the brand.
Omnichannel integration is equally important. The holiday shopper journey is rarely linear—customers may discover products online, research on mobile, and purchase in-store or via curbside pickup. Retailers that can connect media placements across digital and physical touchpoints, and measure their impact holistically, will deliver superior value to both brands and shoppers. In-store digital screens, personalized offers at checkout, and app-based promotions are just a few ways to extend retail media into the physical world.
In an environment where e-commerce margins are under constant pressure from fulfillment costs, returns, and promotional activity, retail media networks offer a rare source of high-margin, scalable revenue. Unlike traditional retail sales, where margins can be razor-thin, media revenue is largely incremental and can be reinvested to fund digital transformation, improve customer experience, or offset rising costs.
During the holiday season, the stakes are even higher. Retailers that can effectively monetize their digital traffic—without compromising the shopper experience—will not only boost short-term profitability but also build a foundation for long-term growth. For CP brands, retail media offers a way to break through the holiday noise, reach high-intent audiences, and drive measurable sales lift.
For retailers and CP companies looking to capitalize on the retail media opportunity this holiday season and beyond, consider the following steps:
The rise of retail media networks represents a fundamental shift in how retailers and CP brands think about digital monetization, especially during the holiday season. By leveraging their unique assets—traffic, data, and customer relationships—retailers can unlock new sources of high-margin revenue, while brands gain powerful new tools to reach and convert shoppers. As the lines between media, commerce, and experience continue to blur, those who invest in retail media now will be best positioned to thrive in the next era of digital retail.