Data Monetization and Retail Media Networks: Unlocking New Revenue Streams in E-commerce
The New Imperative for Retailers
As e-commerce continues its rapid ascent, retailers face a dual challenge: sustaining growth while achieving profitability. The digital shift has brought new opportunities, but also intensified margin pressures, especially for e-commerce-only and grocery retailers. In this environment, data monetization and retail media networks (RMNs) have emerged as powerful levers for unlocking new revenue streams and driving competitive advantage.
Why Data Monetization and Retail Media Networks Matter
Retailers today sit atop a goldmine of first-party data—rich insights into customer behaviors, preferences, and purchase journeys. As third-party cookies decline and privacy regulations tighten, this data becomes even more valuable, not just for internal optimization, but as a foundation for new business models. Retail media networks, built on this data, enable retailers to offer brands targeted advertising opportunities at the point of purchase, creating a win-win for all parties:
- Retailers generate incremental, high-margin revenue.
- Brands gain access to high-intent audiences and closed-loop measurement.
- Consumers receive more relevant, personalized experiences.
Global retail media ad spend is expected to reach $140 billion in 2024, reflecting the urgency for retailers to act or risk being marginalized in a crowded market. The most successful RMNs offer unique value—exclusive data, innovative ad formats, and seamless integration with e-commerce platforms—while fostering collaboration between retailers, brands, and technology partners.
The Business Case: From Data to Dollars
1. Monetizing First-Party Data
Retailers can leverage their owned data to:
- Create unified customer profiles by integrating transactions, site behavior, loyalty, and demographic data.
- Offer brands and suppliers access to anonymized, privacy-compliant insights for campaign targeting and measurement.
- Power new products and services, such as personalized credit offers, auto-replenishment, or subscription models.
2. Building a Retail Media Network
A robust RMN enables:
- Onsite and offsite advertising placements, including sponsored search, display, and video.
- Joint marketing campaigns with brands, leveraging retailer data to target lookalike audiences and drive conversions.
- Real-time reporting and closed-loop attribution, demonstrating the impact of media spend on sales.
66% of shoppers say they’ve bought something online after seeing it advertised, underscoring the effectiveness of retail media when powered by first-party data.
3. Personalization and Customer Experience
Data-driven personalization is not just a marketing tactic—it’s a revenue driver. Retailers using AI and analytics to deliver tailored offers, recommendations, and content see higher engagement, conversion, and loyalty. For example, loyalty-driven purchases have increased by nearly 30% at leading grocers through real-time, targeted offers based on past purchases and behaviors.
4. Operational and Strategic Benefits
Beyond direct monetization, data insights inform:
- Inventory optimization and demand planning
- Dynamic pricing and promotions
- Supply chain efficiency
- Store layout and digital experience enhancements
Overcoming Challenges: From Siloed Data to Connected Ecosystems
While the potential is clear, many retailers struggle to operationalize data monetization and RMNs due to:
- Siloed data across channels and departments
- Legacy technology and fragmented martech stacks
- Organizational misalignment and lack of digital talent
- Privacy, security, and regulatory concerns
The solution lies in building a connected data ecosystem—integrating customer, transactional, and operational data on a unified platform. This enables seamless data sharing with partners in a privacy-safe environment (e.g., clean rooms), supports advanced analytics, and accelerates time-to-market for new media products.
The Path Forward: Publicis Sapient’s Approach
Publicis Sapient partners with retailers to unlock the full value of their data and build scalable, future-ready retail media networks. Our SPEED capabilities—Strategy, Product, Experience, Engineering, and Data—enable:
- Data Strategy & Governance: Assessing data maturity, designing privacy-compliant frameworks, and establishing data-sharing protocols.
- Platform Development: Implementing customer data platforms (CDPs), analytics, and media network infrastructure.
- Analytics & AI: Deploying advanced analytics for audience segmentation, personalization, and campaign optimization.
- Ecosystem Partnerships: Facilitating collaboration between retailers, brands, and technology providers to maximize reach and impact.
- Change Management: Upskilling teams, aligning stakeholders, and embedding a culture of data-driven innovation.
Success Stories: Retailers Leading the Way
- Big-box and grocery leaders have launched RMNs that now account for a significant share of incremental profit, often delivering 50 to 150 basis points of revenue as net new or adjacent streams.
- Grocers and e-commerce-only retailers are leveraging retail media to offset thin margins, with investments in business intelligence, analytics, and personalization driving both media and core retail growth.
- Platform-based retailers are expanding their ecosystems, enabling partners to advertise, sell, and innovate within their digital environments, further monetizing data and customer relationships.
Key Takeaways for Retail Leaders
- Act Now: The window to establish a differentiated retail media network is closing as the market matures. Early movers are capturing the lion’s share of brand budgets and consumer attention.
- Invest in Data Foundations: Unified, high-quality first-party data is the bedrock of successful monetization and media strategies.
- Prioritize Personalization: AI-driven, context-aware experiences drive both media revenue and long-term loyalty.
- Foster Collaboration: Success requires alignment across marketing, merchandising, IT, and external partners.
- Measure and Optimize: Closed-loop attribution and real-time analytics are essential for demonstrating value to brands and optimizing performance.
Ready to Unlock New Revenue Streams?
Retailers who embrace data monetization and retail media networks are not just offsetting margin pressures—they are building the next generation of digital business models. With the right strategy, technology, and partnerships, your organization can turn data into a sustainable engine for growth.
Connect with Publicis Sapient to learn how we can help you design, build, and scale your data monetization and retail media network strategy—unlocking new value for your business, your partners, and your customers.