The Rise of Retail Media Networks: Unlocking New Revenue Streams for Mall Operators and Retailers
In the rapidly evolving retail landscape, mall operators and retailers are facing mounting pressure to diversify revenue streams and adapt to shifting consumer behaviors. One of the most transformative opportunities emerging today is the rise of retail media networks (RMNs). By leveraging first-party data and digital ad space, these networks are enabling property owners and retailers to create high-margin, non-linear revenue streams—reshaping the economics of retail and opening new avenues for growth.
What Are Retail Media Networks?
Retail media networks are digital advertising platforms operated by retailers or mall operators, allowing brands and consumer packaged goods (CPG) companies to target shoppers with highly relevant ads across owned digital and physical channels. Unlike traditional advertising, RMNs are powered by rich, first-party data—collected from loyalty programs, point-of-sale systems, and digital interactions—enabling precise audience segmentation and measurement.
The Business Case: Why Now?
The acceleration of e-commerce, the convergence of online and offline shopping, and the growing importance of data privacy have all contributed to the rise of RMNs. For mall operators and retailers, the business case is compelling:
- High-Margin Revenue: Retail media has become one of the fastest-growing segments in digital advertising, outpacing even search and social. Retailers and mall operators are seeing margins of 40-60% on media network revenue, with some achieving hundreds of millions in annual revenue.
- Monetizing First-Party Data: As third-party cookies become obsolete, the value of first-party data has soared. Retailers and property owners are uniquely positioned to monetize their deep customer insights, offering advertisers access to audiences at the point of purchase.
- Enhancing Shopper Experience: RMNs enable more personalized, relevant promotions and content, driving higher engagement and loyalty while supporting omnichannel journeys.
- Incremental Value for Tenants and Partners: Mall operators can offer their retail tenants new ways to reach customers, driving both digital and in-store traffic and strengthening tenant relationships.
Real-World Impact: A $100 Million Opportunity
Consider the case of a leading American supermarket chain that partnered with Publicis Sapient to build a bespoke retail media network. By unifying data across devices and activating audience segments, the grocer created a platform that delivered trust, transparency, and a higher return on ad spend for CPG partners. The result? The grocer achieved $100 million in annual media revenue within three years—hitting its target ahead of schedule—and is now on track to make data monetization a billion-dollar business line. This success was driven by integrating 16 tools and platforms, leveraging valuable customer intent data, and building a robust operational model for ongoing growth.
Technology and Operational Requirements
Building a successful retail media network requires a thoughtful blend of technology, data strategy, and operational excellence:
- Unified Data Infrastructure: Centralizing and harmonizing data from loyalty programs, POS, web, and mobile channels is foundational. This enables accurate audience segmentation and campaign measurement.
- Ad Tech Integration: Seamless integration with leading ad tech platforms (such as Google Analytics, mParticle, LiveRamp, and cloud solutions) is essential for campaign management, targeting, and reporting.
- Privacy and Compliance: With increasing data privacy regulations, RMNs must ensure robust governance, transparency, and consumer trust.
- Scalable Operations: From campaign planning and creative development to analytics and optimization, a dedicated team is needed to manage the end-to-end process and deliver value to both advertisers and shoppers.
Operational Models: In-House vs. Partnered Networks
Mall operators and retailers can choose from several operational models:
- In-House Networks: Building and operating the RMN internally offers maximum control over data, brand experience, and revenue. This approach requires significant investment in technology, talent, and ongoing management.
- Partnered or Hybrid Models: Collaborating with technology partners or media agencies can accelerate time-to-market and provide access to specialized expertise, while still allowing the retailer or property owner to retain strategic oversight.
The Role of Publicis Sapient
Publicis Sapient has partnered with leading retailers and mall operators to design, build, and scale retail media networks that deliver measurable business impact. Our approach combines deep retail expertise, advanced engineering, and data-driven strategy to create platforms that are:
- Highly Scalable: Supporting rapid onboarding of new brands and advertisers.
- Integrated: Connecting seamlessly with existing commerce, loyalty, and analytics systems.
- Customer-Centric: Delivering personalized, relevant experiences that drive engagement and loyalty.
Looking Ahead: The Future of Retail Media
As retail media networks continue to grow, they are poised to become a core pillar of retail profitability and innovation. By unlocking the value of first-party data and digital real estate, mall operators and retailers can:
- Diversify revenue streams beyond traditional rent and sales.
- Deepen relationships with tenants, brands, and shoppers.
- Future-proof their business models in a privacy-first, omnichannel world.
For property owners, retail executives, and marketers, the time to act is now. The rise of retail media networks represents not just a new revenue stream, but a strategic opportunity to lead in the next era of retail.
Ready to explore how a retail media network can transform your business? Connect with Publicis Sapient’s retail experts to start your journey.