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As online shopping continues to surge in popularity among consumers, retail media is becoming a go-to strategy for brands. Activating campaigns through retail media partners allows brands to leverage retailers’ first-party customer data for audience targeting. Further, if the retailer has a large digital presence, they can also help execute the campaign on their own retail platform.
Retail media networks are rapidly gaining momentum in the advertising industry, playing a critical role in the expansion of programmatic advertising. However, many marketers are still unfamiliar with how these networks operate and the nuances of buying media in this evolving space.
This article will provide you with a foundational understanding of retail media networks, their significance, and how they can drive growth for your business.
What is a retail media network?
A retail media network (RMN) is a digital advertising framework that includes a variety of channels—such as websites and apps—offered by a retail company to third-party brands for advertising purposes. By purchasing ad space on these networks, brands of all sizes can enhance their digital marketing strategies and reach consumers more effectively because they can access the retailer’s first-party customer data for better targeting.
The retail media sector is experiencing significant growth. As online shopping continues to rise in popularity, retailers are leveraging their digital platforms as valuable tools for brands to connect with and engage shoppers. This approach not only allows marketers to reach more relevant audiences, but also provides brands with insights into consumer behavior and shopping patterns, helping them optimize their retail marketing efforts.
As e-commerce spending continues to climb, investment in retail media network advertising is skyrocketing—with no signs of slowing down. In fact, retail media has become the fastest-growing segment in the advertising industry and is projected to reach $8.32 billion by 2027, accounting for 16% of total digital ad revenue.
How do retail media networks work?
Retail media networks allow brands to purchase ad space across a retailer’s digital channels. These channels can include the retailer’s website, mobile app, or even third-party platforms that partner with the retailer to expand the ad inventory (such as social, CTV, and even DOOH).
This setup is akin to in-store advertising but in a digital format—think of it as the online equivalent of placing a product at eye level on a store shelf.
For example, a retailer might offer ad space on its homepage, category pages, or product detail pages. Brands can use this space to showcase their products to shoppers already interested in similar items. This targeted approach increases the relevance of the ads while preserving—and even improving—the shopping experience for consumers.
The benefits of retail media networks
The benefits of retail media networks are extensive, offering significant value to retailers, brands, and consumers.
- Monetization for Retailers: Retail media networks provide retailers with a new revenue stream. Retailers can generate additional income by selling ad space on their digital platforms while offering brands a valuable advertising opportunity.
- Targeted Advertising for Brands: Brands benefit from access to first-party data, allowing them to create highly targeted campaigns. This data-driven approach ensures that ads are shown to consumers most likely interested in the product, increasing the chances of conversion.
- Enhanced Consumer Experience: For consumers, the ads they see on retail media networks are often more relevant to their shopping journey. This relevance makes the ads feel less intrusive and more like helpful suggestions, improving the shopping experience.
- Measurable ROI: Retail media networks may offer analytics along with third-party reporting, enabling brands to track the performance of their ads in real-time. This transparency allows for continuous optimization, ensuring that ad spend is used effectively.
How IAS helps you run with confidence on retail media networks
While retail media networks offer significant benefits, their success hinges on several critical factors, including brand safety, ad viewability, and the ability to capture consumer attention. This is where Integral Ad Science (IAS) comes into play.
IAS empowers brands to drive powerful performance on retail media networks through transparency, consistent measurement, and actionable insights. With IAS’s measurement and optimization solutions for retail media networks, you can validate your campaigns and optimize them in near real-time to ensure superior results.
We provide comprehensive coverage for both on-site and off-site retail media campaigns, ensuring your ads meet the highest standards of quality and safety. Through optimization, IAS helps you target brand-safe, viewable, and non-fraudulent impressions, with solutions tailored to your DSP.
For measurement, IAS delivers insights on Viewability, Invalid Traffic (IVT), and Brand Safety, enabling you to validate campaign performance. Whether on platforms like Amazon, Walmart, eBay, or Criteo, IAS partners with top retail media networks to ensure consistent, trusted measurement across all your advertising efforts.
IAS’s reporting shares actionable data for retail media networks to bring a holistic approach to your retail media buys with other channels, all within the IAS Signal platform. This consistent measurement across platforms enables more informed decisions, helping brands reach real users, drive better engagement, and optimize for performance.
The future of retail media networks
The future of retail media networks looks promising, with more retailers recognizing the value of leveraging their digital platforms for advertising. As these networks continue to grow, so will the opportunities for brands to connect with consumers in meaningful ways.
With the help of IAS, advertisers can leverage the expansive reach of retail media networks while ensuring viewable, brand safe, and optimized ad placements, leading to superior campaign results in the rapidly expanding retail media sector.
Get in touch today to learn how IAS can help you take the lead in retail media networks.
