What Is a Retail Media Network?
A retail media network (RMN) is an advertising ecosystem that enables retailers to monetize their assets by offering brands highly targeted advertising opportunities. It involves leveraging the retailer’s data, insights and channels to deliver relevant ads to customers at various points of their buying journey.
In 2025, retail media networks are expected to experience explosive growth.
This year, Coresight Research estimates an additional 15.4% growth for the retail media market, bringing total revenues to nearly $180 billion. Further, in a recent global advertising forecast, GroupM — the investment arm of WPP media, which oversees global media agencies like Mindshare, Wavemaker, and MediaCom — predicts that in the year ahead, retail media will surpass TV revenues (including streaming) for the first time.
As RMNs continue to grow, understanding how they work, their benefits and the key drivers behind their rapid expansion is essential.
Retail Media: What Is It and Why Does It Matter?
Retail media focuses on leveraging retailers' data and inventory for advertising. It enables brands to target shoppers effectively using first-party data directly from the retailer, eliminating the need for third-party cookies. As websites phase out these cookies, retail media is emerging as a key strategy for smarter, data-driven advertising.
Here’s why it’s a big deal:
1. Higher Conversions
By placing ads directly in front of consumers who are already in a shopping mindset, retail media enhances the likelihood of clicks and conversions. This proximity to purchase helps position ads at critical moments in the buyer’s journey, similar to prime shelf space in stores. Retail media also enables targeting based on shopper data like purchase history and browsing behavior, as well as contextual relevance to ensure ads appear when they are most impactful.
2. Utilizing First-Party Data
Retailers have access to rich first-party data on customer behavior, preferences and purchase history. With the deprecation of third-party cookies, this data becomes even more valuable, allowing brands to deliver highly targeted and privacy-compliant ad campaigns.
3. Easy ROI Tracking
Retail media networks facilitate detailed tracking of advertising effectiveness, linking ad spend directly to sales outcomes. This capability allows brands to measure return on ad spend accurately, providing clear insights into campaign performance.
4. Bridging Online and Offline Sales
Retail media networks use first-party data, such as customer loyalty programs, to link digital ad interactions and in-store purchases. Many shoppers research products online before making a final purchase in-store, a behavior known as “Research Online, Purchase Offline.” By linking online ad exposure to these offline transactions, RMNs offer brands valuable insights into consumer behavior and enable them to measure the full impact of their digital campaigns.
Retail media isn’t just another trend. It’s a powerful tool for brands, retailers and shoppers, making shopping and advertising more effective for everyone.
How Do Retail Media Networks Work?
Retail media networks operate by leveraging a retailer’s existing infrastructure, such as apps, websites and in-store screens, to offer ad placements that connect brands with high-intent shoppers. Furthermore, with precise performance tracking on metrics like CTR, sales and ROAS, these networks help brands optimize strategies, enhance visibility and drive measurable results.
At the same time, RMNs are highly profitable for retailers, as they generate revenue through ad placement fees, audience fees, performance-based charges (CPC or CPM) and data analytics services, making retail media a profitable and scalable business model.
These networks operate across three key areas, each playing a crucial role in connecting brands with consumers at different stages of their shopping journey:
1. On-Site Advertising
Targeting for on-site ads relies on two pillars: relevance and first-party shopping data. Best-in-class advertising platforms, like Mirakl Ads, help brands leverage sponsored products, display ads and video ads across search results, product details, category pages or even the homepage. By ensuring that the right product appears in front of the right shopper at the most relevant moment, these ads drive high conversion rates and maximize purchase intent, helping brands effectively engage consumers when they are most likely to buy.
2. In-Store Advertising
Retailers are turning their stores into dynamic advertising spaces that influence last-minute purchase decisions and boost brand visibility. Digital-out-of-home screens and in-aisle displays showcase promotions, while checkout-counter ads capture attention at key moments, blending in-store experiences with digital engagement.
3. Off-Site Audience Activation
Retailers leverage first-party data to extend ad reach beyond their platforms, targeting shoppers on Google, Meta, and demand-side platforms. With programmatic ads, social media integration, and CRM-based retargeting, brands can connect with consumers while maintaining precise, privacy-compliant targeting.
Benefits of Retail Media Networks
Retail media’s rapid expansion has created a win-win scenario for all stakeholders, offering a number of unique advantages.
For Retailers
New revenue streams: Beyond direct product sales, retail media unlocks high-margin advertising revenue from both first-party and third-party brands.
Enhanced brand collaboration: Retailers strengthen relationships with brands by providing premium ad placements that drive engagement and sales.
For Brands
Data-driven targeting: Retail media leverages first-party shopper data to deliver highly effective ads to high-intent customers. These campaigns often drive strong performance, resulting in higher engagement and conversions.
Actionable insights: Access to detailed customer behavior data helps brands optimize future campaigns and refine their retail media strategies.
For Customers
More relevant experiences: Instead of disruptive, irrelevant ads, shoppers receive tailored recommendations that enhance their buying journey — without relying on intrusive third-party cookies.
The Evolving Retail Media Landscape
Retail media is harnessing trends like AI-powered personalization to create engaging campaigns. As retail media evolves, AI-driven ad optimization is transforming how brands reach shoppers. Machine learning models analyze real-time purchase patterns, inventory levels and consumer behavior to deliver more precise, automated ad placements.
Additionally, retail media networks are integrating more deeply with supply chain and fulfillment data, allowing advertisers to align campaigns with product availability. This prevents wasted ad spend on out-of-stock items.
Non-retail players, like Uber, are also entering the space, offering innovative ad placements that connect brands with consumers in new ways. As the retail media landscape continues to expand, these advancements highlight its growing influence beyond traditional retail environments, reshaping how and where brands engage with shoppers.
Retail Media Networks in Action
Leading the way in retail media networks are some of the industry’s top performers, including:
Amazon Ads: The leading force in retail media, . Amazon thrives on a mix of sponsored products, video and display ads, with third-party brands playing a crucial role in its success as .
Walmart Connect: Leveraging its vast physical and digital presence, Walmart provides premium ad placements. Retail media now drives a third of its revenue, reaching (+20% YoY).
Kroger Precision Marketing: Kroger’s retail media network, Kroger Precision Marketing (KPM), continues to grow as the company prioritizes personalization, driving higher ad engagement. By leveraging loyalty program data, KPM enables that enhance customer relationships and increase profitability.
The Future of Retail Advertising
Retail media networks are revolutionizing advertising, offering new opportunities for brands, retailers and marketplaces.
Platforms like help businesses tap into this growth by seamlessly integrating with marketplaces and providing self-service tools for campaign creation, optimization and reporting. With AI-powered personalization, Mirakl Ads connects brands to their ideal audience, boosting visibility and sales.
As retail advertising continues to evolve, AI-powered personalization will be crucial in enhancing engagement, maximizing ROI and ensuring relevance in a competitive landscape.
To learn more about how you can harness these innovations to fuel eCommerce growth, download our eBook, Unlock eCommerce Growth with Retail Media, here.
