Regional Deep Dive: Retail Media Networks in Europe—Opportunities, Challenges, and Success Stories
Unlocking the European Retail Media Opportunity
Retail Media Networks (RMNs) are rapidly transforming the global retail landscape, offering retailers a powerful new way to monetize first-party data, deliver hyper-targeted advertising, and unlock high-margin revenue streams. While North America has led the charge, Europe remains an underpenetrated market—presenting a significant opportunity for forward-thinking retailers to establish themselves as leaders in this fast-growing space.
At Publicis Sapient, we have partnered with retailers across the globe to design, launch, and scale RMNs that drive measurable business impact. Our experience in the European market reveals unique dynamics, regulatory considerations, and sector-specific opportunities that can help retailers turn data into dollars—while building trust and loyalty with their customers.
The European RMN Landscape: Unique Dynamics and Untapped Potential
Despite the global momentum, many European retailers have been hesitant to invest heavily in RMNs, often due to uncertainty around returns and the complexity of navigating diverse markets and regulations. However, this hesitancy has created a window of opportunity:
- Underpenetration: The proliferation of RMNs seen in the US has not yet fully translated to Europe, leaving room for regional players to become category leaders.
- First-Party Data Advantage: European retailers possess rich, high-quality first-party data from loyalty programs, e-commerce, and in-store transactions—an invaluable asset as third-party cookies disappear.
- Regulatory Environment: Europe’s stringent privacy regulations (such as GDPR) require a privacy-first approach, but also build consumer trust when handled transparently and ethically.
Key Strategies for European Retailers
1. Harness First-Party Data for Advanced Targeting
European retailers must move beyond basic segmentation and leverage their first-party data for precise audience targeting. This means unifying data across digital and physical channels, breaking down silos, and investing in modern customer data platforms (CDPs) that enable real-time personalization and closed-loop measurement.
“It’s becoming more and more necessary for European retailers to harness their first-party data for more advanced targeting strategies. Implementing more precise audience segmenting is what will elevate not only your RMN, but any digital advertising.”
2. Build a Compelling Value Proposition for CPG Partners
RMNs thrive on collaboration with consumer packaged goods (CPG) brands. By offering transparent, measurable, and privacy-compliant advertising solutions, retailers can attract CPG partners eager to reach engaged audiences. Data cleanroom collaborations—where retailers and brands combine data in a privacy-safe way—are fueling the next generation of advanced targeting and campaign effectiveness.
3. Hyper-Personalize Ad Experiences
Loyalty programs are a goldmine for RMNs, but most retailers still use broad segmentation. By further segmenting loyalty members and using AI-driven insights, retailers can deliver highly relevant offers and content, increasing engagement and return business. Generative AI can further enhance this by dynamically creating tailored ad copy and visuals based on real-time customer data.
4. Expand Marketplaces and Monetize In-Store Audiences
European retailers can extend RMN reach by integrating with e-commerce marketplaces and leveraging in-store digital signage. In-store audiences, often larger than digital, present unique opportunities for targeted advertising—especially when combined with loyalty and purchase data.
5. Prioritize Privacy and Compliance
With Europe’s strong focus on data privacy, building trust is paramount. Retailers must implement transparent consent mechanisms, communicate data usage clearly, and ensure that personalization delivers tangible value to customers.
Sector-Specific Recommendations
- Grocery: Use RMNs to combat brand switching and drive loyalty, leveraging purchase history and real-time data to deliver relevant offers. Closed-loop measurement is key for CPG partners.
- Department Stores: Connect supply chain data with retail media to optimize supply and demand, especially as fast-fashion and returns proliferate.
- B2B Retail: Digitize sales processes and use RMNs to reach younger, digitally native buyers through marketplaces and hybrid sales models.
- Convenience Stores: Monetize frequent visits with loyalty-based promotions, in-store screens, and app-based advertising, using closed-loop measurement to prove ROI.
Success Stories: Publicis Sapient in Action
Transforming a Leading Grocer’s Data into a $1B Opportunity
A major grocery retailer partnered with Publicis Sapient to monetize their data through a custom omnichannel RMN. By unifying first-party data, integrating 15+ tools and platforms, and providing real-time, closed-loop reporting, the grocer achieved 15x revenue growth and established a scalable foundation for future data monetization—demonstrating the transformative potential of RMNs.
Accelerating Revenue for a Supermarket Chain
We helped an American supermarket chain build a bespoke RMN that unified data across devices and channels, activated specific audience segments, and delivered a high-margin, non-linear revenue stream. The result: $100 million in annual media revenue within three years, with a clear path to $1B.
Data-Driven Grocery: Personalization and Media Revenue
For another global grocer, Publicis Sapient implemented a robust CDP and digital marketing platform, enabling a 25% increase in conversion, 75% faster campaign curation, and a fourfold increase in data processing. The RMN became a cornerstone of their digital strategy, supporting both business growth and partner collaboration.
Actionable Steps for European Retailers
- Assess Your Data Landscape: Identify and break down silos to create a unified, privacy-compliant data foundation.
- Invest in Modern Platforms: Deploy cloud-based CDPs and composable architectures for agility and scalability.
- Develop a Business Case and Roadmap: Quantify the RMN opportunity and build a phased plan for launch and scale.
- Foster CPG Partnerships: Offer transparent, measurable, and privacy-first advertising solutions.
- Leverage AI and Advanced Analytics: Use AI for segmentation, personalization, and campaign optimization.
- Prioritize Privacy and Trust: Embed data governance and transparent consent into every aspect of your RMN.
Why Publicis Sapient?
With decades of experience in digital business transformation and deep expertise in retail, Publicis Sapient is uniquely positioned to help European retailers unlock the full potential of RMNs. Our SPEED framework—Strategy, Product, Experience, Engineering, and Data & AI—ensures end-to-end execution, from vision and roadmap to implementation and ongoing optimization. We partner with clients to deliver measurable results, accelerate time-to-value, and build future-ready retail businesses.
Ready to unlock new revenue streams and lead the European RMN revolution? Connect with Publicis Sapient’s retail experts to start your transformation journey today.