Retail Media Networks: Monetizing Data and the New Frontier of Shopper Engagement

The Rise of Retail Media Networks (RMNs)

Retail media networks (RMNs) have rapidly emerged as one of the most transformative forces in the retail industry. As traditional profit pools come under pressure and third-party data becomes less accessible, retailers are leveraging their most valuable asset—first-party shopper data—to create new revenue streams, deepen brand partnerships, and deliver highly personalized shopper experiences. The convergence of retail and media is not just a trend; it is a strategic imperative for retailers seeking to remain competitive and relevant in a digital-first world.

Why Retail Media, Why Now?

Several factors are fueling the explosive growth of RMNs:

The Decline of Third-Party Cookies: As privacy regulations tighten and browsers phase out third-party cookies, brands are seeking new ways to reach consumers with precision. Retailers, with their rich troves of first-party data, are uniquely positioned to fill this gap.
Profitability Pressures: With e-commerce margins often thinner than in-store sales, retailers are looking for new profit pools. Retail media offers high-margin revenue opportunities by monetizing digital and physical shelf space.
Demand for Personalization: Shoppers expect relevant, timely, and meaningful experiences. RMNs enable brands to deliver targeted offers and content at the point of purchase, driving both engagement and conversion.

According to Publicis Sapient research, global retail media ad spend is projected to reach $140 billion in 2024, up from $110 billion in 2023. This growth is driven by the increasing importance of first-party data, the decline of third-party cookies, and the need for brands to reach consumers at the point of purchase.

How Retailers Are Monetizing Data

Retailers are evolving from simply selling products to becoming full-fledged media platforms. By harnessing first-party data from loyalty programs, online and in-store transactions, and digital engagement, they can offer brands:

Audience Targeting: Brands can reach highly specific segments based on real purchase behavior, not just browsing history.
Closed-Loop Measurement: RMNs provide brands with direct attribution, showing how media spend translates into sales—both online and in-store.
Omnichannel Activation: Retailers can deliver campaigns across digital properties, in-store screens, mobile apps, and even offsite channels through partnerships.

Leading retailers are building sophisticated data ecosystems, often using clean rooms—secure environments where brands and retailers can match data sets without sharing raw customer information. This enables privacy-compliant collaboration and more effective campaign targeting.

The Role of AI and Clean Rooms

Artificial intelligence (AI) and clean rooms are at the heart of the next generation of retail media:

AI-Powered Personalization: AI enables real-time product recommendations, dynamic pricing, and predictive targeting, ensuring that shoppers see the most relevant offers at every touchpoint. For example, AI-driven personalization can yield a 41% increase in conversions and incremental sales.
Clean Rooms: These secure data environments allow retailers and brands to combine their data sets for deeper insights and more precise targeting, all while maintaining strict privacy controls. Clean rooms are especially valuable for CPG brands, who often lack direct access to audience-level purchase data.

At Shoptalk 2024, clean rooms and AI were among the most discussed topics, with brands like Reckitt leveraging Amazon’s clean room capabilities to identify growth audiences and activate media with measurable incremental impact.

The Convergence of Retail and Media

The boundaries between retail and media are blurring. Retailers are not just selling ad space—they are becoming media companies in their own right. This convergence is evident in several ways:

Shoppable Content: Social platforms like TikTok and Pinterest are integrating with retail media networks, enabling seamless product discovery and purchase within the same experience.
Connected TV (CTV): Retailers are expanding into video and CTV, offering brands new ways to reach audiences with purchase-based targeting and closed-loop measurement.
In-Store Media: Digital screens and interactive displays in physical stores are being used to deliver targeted ads and content, bridging the gap between online and offline engagement.

Challenges: Measurement, Integration, and Scale

Despite the promise of RMNs, several challenges remain:

Measurement and Attribution: While closed-loop reporting is a key advantage, there are still gaps in real-time performance access, on-site viewability tracking, and standardized metrics across networks. Brands and agencies are calling for greater transparency and consistency.
Integration: As more retailers launch their own RMNs, the landscape is becoming fragmented. Brands must navigate multiple platforms, data standards, and buying processes. The need for interoperability and holistic planning is growing.
Inventory and Experience: As retailers become more selective with in-store and digital placements, the competition for premium inventory intensifies. The focus is shifting from quantity to quality—curated, high-impact experiences that drive both brand equity and sales.

Success Stories and Industry Trends

Tesco has launched a third-party marketplace and expanded its Clubcard loyalty scheme, using its data to power both retail media and personalized offers.
Target’s Circle 360 program leverages first-party data to deliver exclusive deals and personalized recommendations, driving retention and new customer acquisition.
Kohl’s partnership with Sephora has brought new demographics into stores, with over 40% of Sephora in-store purchases including another item from Kohl’s, demonstrating the power of data-driven cross-promotion.
Walmart and Amazon are investing heavily in AI and clean room technology to enhance their retail media offerings, providing brands with advanced targeting and measurement capabilities.

The Path Forward: Collaboration and Innovation

To succeed in the new frontier of retail media, retailers, brands, and technology partners must collaborate to create a seamless, effective advertising ecosystem. This means:

Sharing Data and Insights: Building larger, privacy-compliant clean rooms and data marketplaces to enable more powerful targeting and measurement.
Integrating Technology: Ensuring that retail media platforms can connect with broader media buying and analytics tools for holistic planning.
Focusing on Shopper Experience: Balancing monetization with the need to deliver relevant, non-intrusive, and value-adding experiences for shoppers.

Conclusion: Retail Media as a Gateway to Digital Transformation

Retail media networks are more than a new revenue stream—they are a catalyst for broader digital transformation. By unlocking the value of first-party data, embracing AI and clean room technologies, and forging deeper brand partnerships, retailers can create richer, more personalized shopper journeys while driving profitability and growth.

As the retail and media worlds continue to converge, the winners will be those who can harness data, technology, and creativity to deliver measurable value for both brands and shoppers. The future of retail is not just about selling products—it’s about owning the moments that matter across the entire shopper journey.

Ready to explore how retail media can unlock new value for your business? Connect with Publicis Sapient’s retail and data strategy experts to start your transformation journey.