Retail media is a form of advertising that allows brands to reach shoppers using a retailer’s own advertising channels and customer data.
These channels can include adverts on a retailer’s website or app, sponsored search results, in-store digital screens, email marketing, loyalty programmes and increasingly off-site advertising across the wider internet.
By using first-party shopping data, retailers can help brands target consumers who are actively researching or buying products, making retail media one of the fastest-growing sectors in advertising.
Here’s how it works and why it matters.
Retail media enables brands to advertise directly to shoppers using the retailer’s audience and insights. Instead of relying solely on broad demographic targeting, advertisers can reach consumers based on actual purchasing behaviour, product interests and loyalty data.
For example, a food brand launching a new breakfast cereal can promote sponsored listings on a supermarket website, appear on digital screens inside stores and target shoppers online who regularly buy similar products.
Because these campaigns are linked to real shopping activity, retail media often provides clearer measurement of sales impact than many traditional advertising channels.
How does retail media work?
A typical retail media campaign might include:
- A retailer makes advertising space available across its digital and physical channels.
- Brands choose their target audience and campaign objectives.
- Adverts are served to shoppers while they browse products, search online or visit stores.
- Campaign performance is measured using sales, clicks, impressions and other retail data.
- Insights are used to optimise future campaigns.
Many retail media campaigns are now bought programmatically, allowing brands to automate buying and optimise performance in real time.
Why does retail media matter?
Retail media has become one of the fastest-growing areas of advertising because it combines three powerful advantages:
- High-quality first-party customer data.
- Advertising close to the point of purchase.
- Clear measurement of campaign effectiveness.
As third-party cookies disappear and privacy regulations evolve, retailers’ customer data has become increasingly valuable to advertisers looking for accurate targeting and measurable results.
For retailers, media networks also create a significant new revenue stream beyond product sales.
Benefits of retail media
Retail media offers several advantages for both brands and retailers:
- Reaches shoppers close to the point of purchase.
- Uses rich first-party customer data.
- Strong return on advertising investment.
- Highly measurable campaigns.
- Supports both online and in-store activity.
- Creates new revenue opportunities for retailers.
- Can be combined with programmatic advertising.
Challenges of retail media
As the sector grows, it also faces several challenges:
- Different retailers use different technologies and measurement standards.
- Campaign reporting can lack consistency.
- Managing campaigns across multiple retail media networks can be complex.
- Data privacy remains a key consideration.
- Brands increasingly want standardised measurement and attribution.
Examples of retail media
Many leading retailers now operate dedicated retail media businesses, including:
- Tesco Media
- Boots Media Group
- Nectar360 (Sainsbury’s)
- Walmart Connect
- Amazon Ads
- Carrefour Links
These networks allow brands to advertise using retailer-owned channels while accessing valuable shopping insights.
Frequently Asked Questions
Is retail media only online?
No. Retail media includes digital advertising on websites and apps, but also in-store digital screens, audio advertising, sampling, loyalty programmes and other shopper touchpoints.
Is Amazon Ads retail media?
Yes. Amazon is widely regarded as one of the world’s largest and most influential retail media businesses.
What’s the difference between retail media and programmatic advertising?
Retail media is an advertising channel built around retailer audiences and data. Programmatic advertising is a method of buying and selling advertising automatically. Many retail media campaigns are now bought programmatically.
Why is retail media growing so quickly?
Retailers hold valuable first-party customer data and can measure advertising performance close to the point of purchase, making campaigns more accountable for brands.