Retail Media Networks: What You Need to Know as a New Marketing Leader in Retail or CPG
March 11, 2025
So, you just landed a marketing leadership role in retail or CPG—congrats! Now, someone mentions Retail Media Networks (RMNs) in a meeting, and you nod along while secretly wondering, What exactly does that mean?
You’re not alone. Retail Media Networks have exploded in importance, and whether you’re a retailer, brand marketer, or agency partner, understanding how they work is critical. This guide will break down RMNs—what they do for retailers, brands, and agencies running ad campaigns—so you can confidently navigate your new role.
What Is a Retail Media Network?
A Retail Media Network (RMN) is an advertising platform operated by a retailer, allowing brands to buy ad placements within the retailer’s ecosystem—think website, app, in-store displays, email, and even third-party programmatic ads.
RMNs are the digital version of endcap displays and in-store promotions—except they leverage retailer first-party data to deliver ads to highly targeted audiences.
Why Are RMNs a Big Deal?
- Retailers have powerful first-party data – Unlike third-party cookies (which are being phased out), retailers know exactly what their customers are buying, browsing, and searching for.
- More brands are shifting budgets from traditional ads – Instead of generic display ads or social media campaigns, brands are spending directly with retailers to reach ready-to-buy shoppers.
- RMNs drive measurable sales impact – Unlike traditional ads, RMNs are tied to purchase behavior, meaning brands can see exactly how their ad spend translates into sales.
Why RMNs Matter in Retail & CPG Marketing
Retailers Gain New Revenue Streams
Retailers use RMNs to monetize their digital real estate by selling ad placements on their website, app, and store assets. Unlike traditional product placement fees, RMNs generate high-margin income through sponsored listings, display ads, and programmatic partnerships.
Brands Get Direct Access to High-Intent Shoppers
Instead of relying on third-party data, brands using RMNs can target consumers based on actual purchase behavior—showing ads to people who are already browsing similar products. This results in higher conversion rates and better ad performance compared to traditional digital advertising.
Agencies Must Adapt to a New Media Landscape
For agencies and media buyers, RMNs require a shift in strategy. Instead of buying ads on Google and Facebook, agencies now allocate budget to retail media platforms like Amazon Ads, Walmart Connect, and Instacart Ads. RMNs provide closed-loop measurement, meaning agencies can track sales directly tied to ad spend—a level of precision not available in traditional digital marketing.
How RMNs Benefit Retailers, Brands & Agencies
The impact of RMNs varies depending on whether you’re a retailer, brand, or agency running ad campaigns. Below is a breakdown of what RMNs offer to each:
|
Key Benefit |
Retailers |
Brands |
Agencies |
|---|---|---|---|
|
New Revenue Stream |
Sell ad space on site, app, and in-store. |
Pay for top ad spots to boost sales. |
Shift ad budgets to RMNs for better targeting. |
|
Bigger Shopping Carts & More Loyalty |
Ads encourage more purchases and repeat shoppers. |
Promote products to increase repeat buys. |
Design RMN ads that drive sales. |
|
Better Targeting with First-Party Data |
Use shopper data to show relevant ads. |
Target real buyers, not just broad audiences. |
Build better audiences using purchase data. |
|
Competitive Advantage |
Sell premium ad spots to top brands. |
Bid for prime placements in search & banners. |
Manage bids to win top RMN placements. |
|
Easier to Track Sales & ROI |
Prove ads lead to purchases. |
See exactly which ads drive sales. |
Measure real return on ad spend (ROAS). |
Examples of Leading Retail Media Networks
Walmart Connect
Walmart’s RMN allows brands to run sponsored search ads, in-store digital displays, and connected TV ads, all leveraging Walmart’s massive customer data set.
Amazon Ads
Amazon offers sponsored product placements, display ads, and DSP (Demand-Side Platform) advertising, making it the most dominant RMN in eCommerce.
Target Roundel
Target’s RMN integrates on-site ads, programmatic advertising, and in-store marketing, giving brands multiple ways to reach its shoppers.
Instacart Ads
Brands can promote their products directly to grocery shoppers using sponsored listings and personalized ad placements within the Instacart app.
How to Get Started with RMNs in Your Role
- Retailers: If your company operates an RMN, focus on selling ad inventory to supplier brands, optimizing shopper engagement, and ensuring a seamless experience between paid ads and organic product discovery.
- Brands: If you’re a brand marketer, start by testing sponsored listings on key RMNs (Amazon, Walmart, Instacart) to measure ROI and conversion rates before expanding into display and video ads.
- Agencies: If you’re managing media buying, integrate retail media into your ad spend mix, track sales lift and ROAS, and develop custom creative assets suited for RMN placements.
Final Takeaways
Retail Media Networks are fundamentally changing how brands advertise, how retailers monetize their platforms, and how agencies plan ad strategies. Whether you’re on the retailer, brand, or agency side, mastering RMNs will be a game-changer in your new role.
Now that you understand what RMNs do, how they work, and why they matter, you’re ready to dive deeper and start leveraging retail media to drive real business results.