Regional Deep Dive: Retail Media Networks in Europe vs. North America—Opportunities, Challenges, and Growth Strategies
The Divergent Paths of Retail Media Networks in Grocery
Retail Media Networks (RMNs) have rapidly become a cornerstone of digital transformation in grocery, offering grocers and consumer packaged goods (CPG) brands a powerful new revenue stream and a means to unlock the value of first-party data. Yet, the pace and scale of RMN adoption differ markedly between North America and Europe. Understanding these regional dynamics is essential for grocery and CPG leaders seeking to benchmark, localize, or expand their RMN strategies—and for those aiming to capture the next wave of growth in a data-driven retail landscape.
North America: RMNs as a Profitability Engine
In North America, RMNs have quickly evolved from experimental pilots to billion-dollar business lines. Major grocers and mass retailers have built sophisticated, self-service advertising platforms that allow CPGs to target shoppers across digital properties, emails, mobile apps, and even in-store displays. The result: some retailers now generate hundreds of millions in high-margin revenue annually from RMNs, with projections that retail media will soon eclipse television as an advertising platform.
Several factors have fueled this rapid growth:
- Mature loyalty programs and robust first-party data: North American grocers have long invested in loyalty ecosystems, providing a rich foundation for advanced audience segmentation and closed-loop measurement.
- Omnichannel scale and digital traffic: With e-commerce now accounting for 12-15% of grocery sales, retailers have the digital reach to attract significant CPG ad spend.
- A culture of test-and-learn: Retailers have embraced agile, cross-functional teams and a willingness to experiment with new monetization models, from in-store digital displays to AI-driven personalization.
Case in point: A leading U.S. supermarket chain, with support from Publicis Sapient, built a bespoke RMN that delivered $100 million in annual media revenue within three years, creating a scalable blueprint for data monetization and setting the stage for a billion-dollar business line.
Europe: Slower to Scale, but Poised for Acceleration
By contrast, European grocers have been more cautious in their approach to RMNs. While the opportunity is clear, several unique challenges have contributed to a slower pace of adoption:
- Regulatory complexity and data privacy: Europe’s stringent data protection regulations (such as GDPR) require retailers to navigate a more complex landscape for collecting, managing, and monetizing customer data. This has led to hesitancy around advanced targeting and data sharing.
- Fragmented markets and consumer preferences: Europe’s grocery sector is highly localized, with diverse consumer behaviors and a patchwork of national regulations. This fragmentation complicates the creation of scalable, cross-market RMN platforms.
- Less mature loyalty ecosystems: Many European grocers are still building the foundational data assets—such as unified loyalty programs and customer data platforms—needed to power effective RMNs.
Despite these hurdles, the European market is ripe for transformation. The proliferation of RMNs in North America has not yet fully translated to Europe, leaving a significant opportunity for regional leaders to leapfrog competitors by investing in first-party data, advanced targeting, and cross-market collaboration.
Unlocking the Opportunity: Actionable Strategies for European Grocers
To close the gap and realize the full potential of RMNs, European grocers should consider the following strategies:
- Harness First-Party Data for Advanced Targeting
European retailers must prioritize the development of robust first-party data assets. This means investing in loyalty programs, customer data platforms, and consent management tools that enable precise audience segmentation while maintaining compliance with privacy regulations. As industry standards for RMN transparency and targeting mature, those with strong data capabilities will rise to the top.
- Build Scalable, Omnichannel RMN Platforms
Success in RMNs requires more than just digital ad inventory. Grocers should create unified platforms that span web, mobile, email, and in-store touchpoints, offering CPG partners a seamless, closed-loop advertising experience. Investing in in-store digital displays and integrating online and offline data will maximize reach and measurement.
- Collaborate Across Markets and with CPG Partners
Given Europe’s market fragmentation, cross-border collaboration is key. Retailers can partner with CPG brands and even with competitors to create data cleanrooms—privacy-compliant environments for sharing and activating data. These collaborations enable more sophisticated targeting and unlock new value for both retailers and advertisers.
- Hyper-Personalize Ad Experiences
Moving beyond basic segmentation, European grocers should leverage AI and machine learning to deliver hyper-personalized offers and content. Loyalty program members can serve as a testing ground for new promotions, with dynamic ad experiences tailored to individual behaviors and preferences. Generative AI can further enhance creative variation and relevance at scale.
- Embrace a Test-and-Learn Mindset
The most successful RMN launches in North America have been driven by agile, cross-functional teams willing to experiment, iterate, and scale what works. European grocers should adopt a similar approach, piloting new RMN features, measuring impact, and rapidly evolving their offerings.
Real-World Impact: Case Examples
- UK-Based Grocer: At the height of the pandemic, a major UK grocer, with Publicis Sapient’s support, doubled its online order capacity in less than a week, demonstrating the power of agile digital infrastructure and data-driven decision-making. This same infrastructure can be leveraged to scale RMN capabilities.
- Leading U.S. Supermarket: By integrating a digital marketing platform and customer data platform, a top U.S. grocer achieved a 25% increase in conversion rates and $100 million in annual RMN revenue, providing a model for European grocers to emulate.
Publicis Sapient’s Perspective: The Future of RMNs in Grocery
Retail media networks are the single biggest e-commerce profitability play for grocers in 2024 and beyond. As the digital share of grocery sales continues to rise, RMNs offer a high-margin, non-linear revenue stream that can offset the structural challenges of online grocery profitability. For European grocers, the time to act is now: by investing in first-party data, omnichannel platforms, and collaborative data strategies, they can catch up—and even leap ahead—of their North American peers.
At Publicis Sapient, we help grocery leaders design, build, and scale RMNs that drive measurable business impact. Our approach combines deep retail expertise, advanced data and AI capabilities, and a proven track record of digital transformation across both North America and Europe. Whether you’re looking to launch your first RMN or take an existing platform to the next level, we’re ready to help you unlock new sources of value and lead the next era of grocery retail.
Ready to accelerate your RMN journey? Connect with Publicis Sapient to discover how we can help you transform data into growth—regionally and globally.