Retail Media Networks are digital advertising platforms operated by retailers, leveraging first-party data to target shoppers in retail environments. They enable brands to deliver ads near the point of purchase, measure ROI effectively, and personalize customer interactions. RMNs are a cornerstone of modern retail marketing, offering a unique combination of precision and scale.
History of RMNs:
The concept of RMNs began in the early 2000s when e-commerce giants like Amazon started monetizing their websites with sponsored product ads called Sponsored Product Listings. This marked the shift toward first-party data use in targeted advertising.
By the 2010s, brick-and-mortar retailers joined the game, recognizing the value of combining digital tools with their customer insights. Walmart Connect (then Walmart Media Group) and Target's Roundel were among the pioneers.
Today, RMNs are a multibillion-dollar industry, driven by the decline of third-party cookies and the need for precision targeting.
Sponsored product ads displayed during online searches reach shoppers when they are actively looking to purchase. Amazon integrates these with in-store promotions at Whole Foods, offering a unified digital and physical experience.
Combines digital ads and personalized in-store promotions, such as digital shelf tags, to bridge online and brick-and-mortar sales. Walmart’s closed-loop attribution connects ad performance directly to purchases.
Leveraged Ulta Beauty’s RMN for eco-conscious beauty promotions.
Integrated in-store promotions with digital ads, achieving a 40% lift in online sales and 25% increased foot traffic.
RMNs are uniquely positioned to support a full-funnel marketing approach, from top-of-funnel awareness to bottom-of-funnel conversions and post-purchase loyalty. By targeting customers at each stage, brands can create cohesive and effective campaigns.
Use sponsored product listings Sponsored product listings and display ads to build awareness.
Focus on seasonal campaigns aligned with retailer promotions for visibility.
Include Geo-targeting to promote products in regions with higher demand for beverages.
Implement retargeting campaigns for mid-funnel shoppers who visited but didn’t purchase.
Offer personalized product recommendations based on browsing or purchase history.
Use Criteo or Amazon DSP (Demand-Side Platform) to serve ads dynamically tailored to consumer behavior.
Build loyalty through post-purchase campaigns, offering discounts on complementary items. Integrate RMN campaigns with broader omnichannel efforts like Instagram, email, Google Ads, TikTok, and Connected TV. Use business intelligence tools like Tableau or Looker to link RMN performance data with broader sales metrics.
Personalizes grocery shopping experiences by serving ads based on shopping lists and in-app behavior. Integrates in-app ads with in-store grocer promotions, driving engagement across channels.
Pairs personalized digital ads with in-store kiosks and QR codes that offer interactive promotions. Comprehensive attribution measures both online and in-store impact.
Used Kroger Precision Marketing to launch geo-targeted ads and in-store promotions, achieving a 30% uplift in sales and boosting brand visibility.
Maximizing RMN performance requires careful selection of platforms, creative optimization, and ongoing performance tracking. With a test-and-learn approach, brands can refine campaigns to achieve the highest return on investment.
Select RMNs that align with your audience and goals.
Use basic KPIs like CTR and ROAS to measure initial performance.
Conduct A/B tests for ad formats (e.g., image vs. video) to determine what resonates with your target audience.
Craft tailored creatives for each RMN, ensuring relevance and visual appeal.
Allocate budgets strategically across platforms, focusing on high-performing campaigns.
Use tools like Google Analytics 4 or Amazon Attribution to track cross-platform customer journeys.
Apply real-time optimization to scale successful campaigns.
Leverage advanced KPIs like CLTV to measure long-term profitability.
Automate campaign adjustments with APIs from platforms like Walmart Connect or Instacart, ensuring real-time bidding efficiency.
Executing a successful RMN campaign for a CPG brand requires collaboration across multiple teams and external partners. Below is a breakdown of the key stakeholders and their roles in planning and executing an RMN strategy:
Uses advanced segmentation on Walmart Connect to retarget in-store shoppers who interacted with online ads. Combined with in-store endcap signage, this approach creates a cohesive omnichannel experience.
Leverages real-time performance data from multiple RMNs to adjust creative assets dynamically. Uses shelf-level tags in-store to reinforce campaign themes, bridging digital and physical touchpoints.
Created geo-targeted campaigns on Dick’s Sporting Goods’ RMN to promote fitness accessories.
Integrated dynamic in-store signage and achieved a 3.5x ROAS.
RMNs are at the forefront of marketing innovation, incorporating AI, machine learning, and connected store media. These tools enable brands to personalize advertising and create seamless omnichannel experiences. By leveraging advanced data and analytics, brands can unlock new opportunities to engage customers and optimize their campaigns.
Explore connected store media basics, such as digital signage and in-store ads.
Understand how AI enhances RMN targeting and segmentation.
Test basic AI-powered recommendations using Amazon’s sponsored ads platform Sponsored product listings.
Implement AI-driven personalization to deliver real-time ad adjustments.
Integrate RMNs into omnichannel strategies, linking online and offline customer journeys.
Use machine learning tools like Looker Studio Business-Intelligence-Tools.
Use predictive analytics for advanced audience targeting and ROI forecasting.
Adopt comprehensive tools like Trade Desk for managing cross-channel RMN campaigns.
Develop custom AI solutions to identify micro-segments and automate creative decisions.
Innovative Retail Media Networks (RMNs) can provide marketers with unconventional and highly actionable insights that go beyond traditional campaign metrics. Here are three of the most interesting and impactful data points available:
RMNs link online ad interactions to in-store purchases by analyzing shopper behavior across digital and physical channels.
This closed-loop measurement enables brands to assess the direct impact of digital campaigns on brick-and-mortar sales, creating a more comprehensive understanding of the customer journey.
Advanced RMNs offer real-time insights into customers' shopping baskets, uncovering product affinities and cross-selling opportunities.
For example, data might reveal that shoppers frequently purchase sparkling water alongside organic snacks, allowing brands to design bundled promotions that boost sales and enhance customer satisfaction.
Using predictive analytics, RMNs forecast future purchasing behaviors based on historical data and current trends.
This allows brands to anticipate customer needs, optimize inventory, and personalize marketing campaigns, resulting in more effective outreach and stronger customer loyalty.
Combines predictive analytics with connected store media to suggest complementary products in-store, boosting average transaction values.
Uses in-store purchase attribution to validate the impact of digital ad campaigns on brick-and-mortar sales.
Leveraged basket analysis on Instacart Ads to promote bundled snacks and beverages, resulting in a 30% lift in cart size.
Retail Media Network (RMN) A platform operated by a retailer that allows brands to advertise to their customers, often leveraging first-party data.Digital Shelf AnalyticsTools used to monitor and optimize a brand’s visibility and performance on retailer websites.On-Site MediaAdvertisements displayed directly on a retailer’s digital properties, such as websites or mobile apps.Connected Store MediaIntegration of physical and digital advertising through in-store touchpoints like digital displays or QR codes.First-Party Retail DataProprietary customer data owned by a retailer, used for targeting and personalization in RMN campaigns.Off-Site MediaRetailer-facilitated ads that appear outside of the retailer's digital ecosystem, such as social media or search engines.Retailer Profit MarginsThe financial benefits retailers gain by hosting media networks, often a significant contributor to non-product revenue.Closed-Loop AttributionThe ability to connect media spend directly to sales outcomes using retailer data.Purchase Pathway MappingCharting the specific steps consumers take from viewing RMN ads to making a purchase.Cost-per-Sale (CPS)An RMN pricing model where brands pay a percentage of sales generated through advertising.Media CannibalizationThe risk of RMN ads drawing sales away from other channels instead of driving incremental growth.Sponsored Product ListingsPaid placements for products on retailer search pages or category listings.Retailer-Specific Creative GuidelinesMandates on ad design and messaging to align with a retailer’s branding.Data Clean RoomsSecure environments where retailers and advertisers can match datasets without sharing raw customer information.Personalized RMN CampaignsTailored ads targeting individual customer preferences or past behaviors using retailer data.Cross-Retailer AdvertisingAdvertising strategies designed to span multiple RMNs to maximize reach and efficiency.Customer Loyalty IntegrationLeveraging loyalty program data to enhance RMN campaign targeting and effectiveness.Holiday-Specific RMN CampaignsAd campaigns designed to align with retail holidays or peak shopping periods.Collaborative Advertising ModelsPartnerships between brands and retailers to co-fund or co-create RMN campaigns.
KPI FrameworkA structured approach to selecting and analyzing Key Performance Indicators aligned with business goals
RetargetingA technique that enables retailers to show ads to customers who have previously interacted with their website or products.Geo-targetingThe practice of delivering different content or advertisements to customers based on their geographic location.
Demand-Side Platform (DSP)A software system that allows advertisers to buy digital advertising inventory across multiple ad exchanges through a single interface, with automated bidding and targeting capabilities.
Business Intelligence ToolsSoftware platforms (like Looker Studio) that combine data analytics, reporting, and machine learning capabilities to provide insights and predictive modeling for audience targeting and campaign optimization.
Predictive AnalyticsThe use of historical data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data, enabling more informed decisions about advertising strategies and customer targeting.
Return on Ad Spend (ROAS)A metric measuring the revenue generated per dollar spent on advertising, calculated by dividing total revenue by advertising costs.
A/B TestingA method of comparing two versions of an advertisement or campaign to determine which performs better.
Customer Lifetime Value (CLTV)The total predicted revenue a customer will generate throughout their entire relationship with a business.
Amazon AttributionA measurement solution that provides insights into how non-Amazon marketing channels drive sales and engagement on Amazon.
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