Data Monetization and Retail Media Networks: Unlocking New Revenue Streams for E-commerce Retailers

Introduction

As e-commerce continues to claim a larger share of total retail sales, retailers face a persistent challenge: digital channels, while essential for growth, often deliver thinner margins than traditional brick-and-mortar operations. In this environment, mature digital retailers are seeking innovative ways to drive profitability. One of the most promising strategies is data monetization—leveraging rich first-party data assets to create new revenue streams through retail media networks, onsite and offsite advertising, and advanced analytics.

Publicis Sapient has been at the forefront of helping retailers operationalize these capabilities, enabling them to offset margin pressures and build sustainable, high-value digital businesses. This page explores the business case for data monetization, outlines the steps to build a retail media platform, and discusses the organizational and technical enablers required for success. We also address critical considerations around privacy, data governance, and the strategic importance of first-party data.

The Business Case for Data Monetization in Retail

E-commerce profitability remains elusive for many retailers. Research shows that nearly half of retailers with both online and physical stores report lower profitability in e-commerce compared to in-store sales, and a significant portion say their digital channels are not meeting profit targets. As traditional levers like cost-cutting and price increases reach their limits, retailers are turning to data monetization as a new growth engine.

Why Data Monetization?

• New Revenue Streams: Retailers can generate incremental income by selling advertising space on their digital properties, sharing anonymized data with partners, or enabling targeted marketing campaigns for brands.
• Enhanced Customer Experience: By leveraging data for personalization and targeted offers, retailers can improve engagement and loyalty, driving higher conversion rates and customer lifetime value.
• Competitive Differentiation: Retailers with robust data capabilities can offer unique value to brand partners, such as access to exclusive audiences or advanced analytics, setting themselves apart in a crowded market.

The Rise of Retail Media Networks

Retail media networks (RMNs) are rapidly becoming the fastest-growing advertising channel globally. By enabling brands to reach shoppers at the point of purchase—using retailers’ first-party data—RMNs offer highly effective, measurable advertising solutions. Global retail media ad spend is projected to reach $140 billion, driven by the decline of third-party cookies and the increasing value of first-party data.

Building a Retail Media Platform: Key Steps

1. Consolidate and Activate First-Party Data
   • Integrate data from e-commerce, loyalty programs, in-store transactions, and digital touchpoints to create a unified customer view.
   • Invest in customer data platforms (CDPs) and data lakes to enable real-time segmentation and targeting.
2. Develop Advertising Products and Inventory
   • Offer a range of ad formats, including sponsored product listings, display ads, and personalized offers, both onsite (on the retailer’s website/app) and offsite (across the open web and social platforms).
   • Enable self-service tools for brands to plan, execute, and measure campaigns.
3. Establish Measurement and Analytics Capabilities
   • Provide brand partners with transparent, actionable insights on campaign performance, sales attribution, and audience behavior.
   • Use advanced analytics and AI to optimize ad placements and maximize ROI for both retailers and advertisers.
4. Ensure Privacy, Compliance, and Data Governance
   • Implement robust data governance frameworks to manage consent, data sharing, and regulatory compliance.
   • Build trust with consumers by being transparent about data usage and offering clear privacy controls.
5. Create Organizational Alignment and Talent
   • Break down silos between marketing, merchandising, IT, and data teams to enable agile, cross-functional collaboration.
   • Invest in upskilling and hiring talent with expertise in data science, ad tech, and digital product management.

Organizational and Technical Enablers

Technology Foundations

• Unified Data Architecture: A modern, cloud-based data infrastructure is essential for integrating and activating data across channels.
• APIs and Clean Rooms: Secure data sharing with partners and advertisers can be enabled through APIs and privacy-safe data clean rooms, allowing for collaboration without compromising consumer privacy.
• AI and Automation: Machine learning models can drive personalization, dynamic pricing, and campaign optimization at scale.

Operating Model Shifts

• Cross-Functional Teams: Success in data monetization requires breaking down traditional silos and fostering collaboration between business, technology, and analytics functions.
• Agile Ways of Working: Rapid experimentation and iterative product development are key to staying ahead in the fast-evolving retail media landscape.

Privacy, Data Governance, and the Power of First-Party Data

With the deprecation of third-party cookies and rising consumer expectations around privacy, first-party data has become a strategic asset. Retailers must prioritize:

• Transparency: Clearly communicate how customer data is collected, used, and shared.
• Consent Management: Implement tools for customers to control their data preferences.
• Regulatory Compliance: Stay ahead of evolving privacy laws and industry standards.

Retailers that build trust and demonstrate responsible data stewardship will be best positioned to unlock the full value of their data assets.

Publicis Sapient’s Experience: Operationalizing Data Monetization

Publicis Sapient has partnered with leading retailers to design, build, and scale retail media networks and data monetization strategies. Our SPEED capabilities—Strategy, Product, Experience, Engineering, and Data—enable us to deliver end-to-end solutions, from data platform modernization to organizational transformation and go-to-market execution.

We have helped clients:

• Integrate disparate data sources to create a single customer view
• Launch self-service retail media platforms for brand partners
• Develop advanced analytics and measurement frameworks
• Establish privacy-first data governance models
• Upskill teams and embed agile, cross-functional ways of working

Conclusion: The Path Forward

Data monetization and retail media networks represent a transformative opportunity for e-commerce retailers to drive profitability and create new value for customers and partners. By investing in the right technology, talent, and operating models—and by prioritizing privacy and data governance—retailers can unlock sustainable, high-margin revenue streams and secure their place in the future of digital commerce.

To learn how Publicis Sapient can help your organization operationalize data monetization and retail media, contact us today.

Relevant Links

• Global Retailers' E-commerce Investment Priorities and Profitability Challenges: Insights from the Publicis Sapient & Salesforce Ipsos Report
• Omnichannel Excellence in the Nordics: Overcoming Investment Barriers and Driving Profitability
• Las Cuatro Palancas de la Rentabilidad en E-commerce: Un Enfoque para Ejecutivos Latinoamericanos (LATAM)
• Data Monetization and Retail Media Networks: Unlocking New Revenue Streams in E-commerce
• The Future of the Digital Store: Robotics, Automation, and the New In-Store Experience
• E-commerce Profitability Playbook: Sector-Specific Strategies for Grocery, Apparel, and Electronics
• Les Quatre Piliers de la Rentabilité du E-commerce : Optimiser la Performance Digitale en Europe (Europe)
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• Global Retailers' E-commerce Investment Priorities and Profitability Challenges: Insights from the Publicis Sapient & Salesforce Ipsos Report
• Omnichannel Excellence in the Nordics and Australia: Regional Approaches to E-commerce Growth and Profitability
• Las Cuatro Reglas de Oro del Retail Moderno: Claves para Ejecutivos en América Latina (LATAM)
• E-commerce Profitability in the Grocery Sector: Unique Challenges and Digital Solutions
• El Futuro del Retail en América Latina: Rentabilidad, Experiencia y Omnicanalidad (LATAM)