Retailers have a valuable asset: first-party shopper data and direct relationships with consumers. By turning their digital real estate into ad inventory, retailers create new revenue streams, while brands gain the ability to target ads using precise purchase behavior data in a contextually relevant environment.
RMNs typically offer advertisers a range of placements and capabilities, including:
- Onsite Advertising: Sponsored product listings, display banners, search ads, or video placements on the retailer’s website or app.
- Offsite Advertising: Extending retailer data to external platforms (e.g., programmatic display, social media) to retarget shoppers elsewhere on the web.
- In-store Media: Digital signage, screens, or interactive kiosks that enable omnichannel campaigns.
- Audience Targeting: Leveraging retailer first-party data—like past purchases, browsing behavior, and loyalty program info—to create highly targeted segments.
- Closed-loop Measurement: Connecting ad impressions to actual sales, giving brands transparent attribution and ROI tracking.
Example: A beverage brand launches a sponsored product campaign on Walmart Connect, Walmart’s retail media network. Using shopper data, they target consumers who frequently buy snacks and beverages. Ads appear on search results pages, category pages, and in personalized recommendation sections of Walmart’s app. Post-campaign reporting shows a 20% lift in sales among the targeted audience, proving both reach and measurable impact.
Why RMNs matter:
- High-Intent Audiences: Ads reach shoppers who are already browsing or buying—often resulting in higher conversion rates than other channels.
- Data Advantage: Retailers can offer granular, privacy-safe targeting based on first-party purchase data.
- Incremental Revenue for Retailers: RMNs turn digital properties into profit centers.
- Closed-Loop Attribution: Brands can track performance through to actual sales, enabling precise ROI measurement.
- Omnichannel Reach: Many RMNs now blend onsite, offsite, and in-store placements for integrated campaigns.
- Privacy-Resilient Targeting: With third-party cookies disappearing, RMNs provide a powerful alternative using authenticated, consented data.
Best practices for advertisers using RMNs:
- Align RMN campaigns with shopper intent: Match placements to where consumers are in the buying journey (e.g., sponsored listings for bottom-of-funnel).
- Leverage first-party data strategically: Build targeted segments for personalization without over-targeting.
- Integrate creative with the retail environment: Ads should feel native and helpful, not intrusive.
- Test and iterate: Start with clear objectives, then optimize based on performance data and sales impact.
- Coordinate with other channels: Use RMNs as part of a broader media mix to maximize reach and reinforce messaging.
- Understand measurement models: Closed-loop reporting varies by network; ensure your KPIs align with what can be tracked.
Pro Tip: Not all RMNs are created equal. Evaluate potential partners based on audience scale, data sophistication, targeting capabilities, measurement transparency, and ease of activation. The most effective campaigns often blend retail media with other performance and brand channels for maximum impact.