Retail Media Networks

The $166 Billion Opportunity Most Brands Are Botching

Retail media networks — whose leaders include Amazon, Walmart and Target — are expected to make up one-fifth of worldwide digital ad spend in 2024, raking in $140 billion, up from $115 billion in 2023, yet most brands are approaching RMNs with the same mindset they used for traditional display advertising. This fundamental misunderstanding is costing them millions.

Why Most RMN Strategies Fail

The biggest mistake I see brands making is treating retail media networks like glorified banner ad platforms. They're optimizing for the wrong metrics, using one-size-fits-all creative, and failing to understand the unique value proposition of each network.

RMNs aren't just advertising platforms—they're data-driven commerce enablers. The brands that understand this distinction are seeing dramatically different results from their investments.

The Three-Layer RMN Strategy

Successful RMN strategies operate on three levels: onsite optimization (sponsored products and display), offsite expansion (leveraging retailer data for broader targeting), and in-store integration (connecting digital campaigns to physical purchasing behavior).

The retail media space is set for big changes in 2025, with AI, programmatic advertising, and strategic partnerships leading the charge. The most sophisticated brands are already building programmatic capabilities to manage campaigns across multiple RMNs efficiently.

The Non-Endemic Opportunity

53% of US brands have used an RMN where they are not an endemic brand, but this number should be much higher. Non-endemic advertising on RMNs represents one of the biggest untapped opportunities in digital marketing.

If your customer buys diapers at Target, they're probably in the market for baby clothes, car seats, and children's vitamins—products Target might not carry but that your brand could advertise to these highly qualified prospects.

Forecast: Non-endemic RMN advertising will grow 300% by 2026 as more brands realize the power of behavioral targeting based on actual purchase data.