Unlocking growth: How retail media networks and marketplaces drive profitability
Retail media networks are transforming how retailers profitably generate revenue and improve the customer experience online. These networks are becoming increasingly important for every retailer, but especially marketplaces as the relationship between retail media and marketplaces is mutually beneficial.
Retail media enhances marketplace performance by providing targeted advertising opportunities, while marketplaces — with their broad reach and diverse product assortment — make retail media campaigns more effective. Together, they create a powerful growth engine for businesses.
To explore this dynamic further in 2025, Mirakl commissioned Forrester Consulting to conduct an in-depth study titled "Combine Retail Media and Marketplaces to Unlock the Next Growth Engine," to offer insights into how businesses can leverage the potential of both retail media and marketplaces.
For the study, Forrester surveyed 160 senior retail executives in the North America and EMEA regions to learn more about their retail media strategies, with participating companies having generated at least $50 million in online revenue.
Below, we share key insights from the study, analyzing the trends shaping retail media’s future and the opportunities for retailers to capitalize on emerging developments.
Unlocking the untapped potential of mid- to long-tail advertisers
Mid- to long-tail advertisers are typically smaller, third-party (3P) sellers with niche products. Their advertising budgets drive incremental revenue for the retailer, unlike first-party (1P) advertisers who often reallocate existing trade marketing budgets to retail media. These smaller advertisers can reach specific product categories that larger brands may overlook.
These advertisers might be small fish in a big pond, but when grouped together, their impact is enormous. Plus, they often invest a larger proportion of their GMV compared to established brands, as they cannot rely on existing brand recognition. Yet, despite their potential collective impact, mid- to long-tail advertisers remain an underleveraged segment in retail media networks.
In fact, according to the study conducted by Forrester Consulting, respondents said just 28% of total retail media ad revenue could be attributed to the mid- to long-tail segment.
Despite the modest percentage, retail media networks that successfully onboard and activate mid- to long-tail advertisers can significantly grow their revenues, as smaller advertisers are crucial for product variety, enhanced marketplace diversity and always-on advertising.
Walmart serves as a powerful example of this trajectory, as upwards of 85% of its retail media revenue stems directly from mid- to long-tail advertisers. For other retailers to replicate this success, comprehensive self-service platforms, combined with smart onboarding processes and automated campaigns, will be key to encouraging participation from these smaller brands.
In fact, at 76%, “ease of onboarding sellers for self-service” was cited as the most valuable feature respondents looked for in a retail media solution. And yet, the gap between Walmart’s mid- to long-tail performance and the surveyed retailers in the Forrester study shows that most retail media solutions are still coming up short in this crucial capability.
Monetizing all marketplace sellers to accelerate retail media growth
Sponsored Product advertising is one of the most profitable sources of revenue with the highest margin for retailers and the best return on ad spend for advertisers. It’s also the easiest format to implement, with campaigns that can be launched in just a few minutes.
However, until now, retailers have focused primarily on a handful of large advertisers who do not fill all categories. Monetizing all marketplace sellers, including the mid- to long-tail advertisers, is key to accelerating retail media growth, as they sponsor more products, on more categories and for longer periods. In fact, third-party sellers outspend first-party brands on all retail media formats, sponsored products, but also display and video, according to a Smartscout study published by Forbes.
But these new advertisers have different needs — they require intuitive self-service UI, automation capabilities for campaign creation and optimization, and the ability to advertise thousands of SKUs in a single campaign.
Retailers need to leverage the right technology to tackle these needs and it can be quite complex. That’s why the biggest challenge retailers cited, according to the Mirakl-commissioned Forrester study, was selecting the right partners to power their retail media stack (at 40%), while only 6% of retailers ranked “synergies between retail media and marketplaces” as their first priority driving investment in their retail media network.
Accelerating retail media programs with advanced AI/ML targeting
Scaling retail media programs is no small feat, especially with complex ecosystems comprising both large brands and long-tail advertisers. In this regard, automation and artificial intelligence have emerged as critical enablers within this domain.
Nearly 75% of retailers deem fully automated campaigns and AI/ML-driven targeting as either “valuable” or “highly valuable” in their retail media efforts, according to a commissioned study conducted by Forrester Consulting on behalf of Mirakl. These capabilities not only optimize ad targeting for advertisers but also reduce the operational burden of managing numerous advertisers for retailers.
That said, satisfaction with current retail media platforms remains tepid. Only 53% of respondents are satisfied with their platform’s AI and machine learning capabilities, the Forrester study found. To address this, retailers must invest in solutions with advanced automation and user-friendly AI tools to unlock retail media’s full potential.
Addressing key challenges in retail media
While the opportunities in retail media are immense, several challenges continue to hinder growth. Participants in the Forrester study cited several critical points as their main concerns, including:
Data security and privacy regulations (21%)
Control over advertising content and placements (20%)
Operational complexity and resource constraints (18%)
Retailers must strike a delicate balance, unlocking new revenue opportunities while preserving a seamless and trustworthy customer experience.
The solution lies in robust, enterprise-grade platforms that offer advanced self-service features, strict data security compliance and streamlined operational efficiency.
Key recommendations for retailers
Based on the findings of the commissioned study conducted by Forrester Consulting on behalf of Mirakl, marketplace leaders and retail media executives should focus on three main strategies:
Activate the mid- to long-tail: Smaller advertisers represent a gold mine of opportunity, due to their larger numbers and disposition to invest a larger percentage of their GMV.
These advertisers, essentially 3P marketplace sellers, have specific needs: They favor continuous automation and require self-service, easy-to-launch campaigns — involving thousands of products — aimed at driving sales.
Invest in AI-powered, built-for-scale solutions: Scalability challenges can stifle growth if not addressed proactively. Retailers should adopt platforms that combine robust automation, seamless onboarding and intuitive campaign management features to achieve lasting success.
Get ahead in retail media — download the Forrester study
Retail media and marketplaces are no longer independent silos — they are two sides of the same coin, driving incremental growth and profitability.
The Forrester study, “Combine Retail Media and Marketplaces to Unlock the Next Growth Engine”, offers a detailed analysis on how retailers can leverage retail media and marketplaces to drive growth and stay competitive in today's evolving market.
Download the study here to learn more.
Download: “Combine Retail Media and Marketplaces to Unlock the Next Growth Engine”
