Retail Media Networks (RMNs) have emerged as the “third wave” of digital advertising, following search and social media. An RMN is a platform where retailers sell advertising space on their own digital properties (websites and apps) and physical locations to third-party brands, powered by the retailer’s own first-party customer data.
The primary appeal for advertisers is the ability to reach consumers at the “point of purchase”—when they are actively shopping and ready to buy.
How Retail Media Networks Work?
RMNs function as a closed-loop ecosystem. This means the retailer controls the data from the initial ad exposure all the way to the final transaction, allowing for highly accurate measurement of Return on Ad Spend (ROAS).
- On-site Advertising: Sponsored products in search results, banner ads on homepages, and video ads on product detail pages.
- Off-site Advertising: Using the retailer’s data to target shoppers on external platforms like social media (Instagram, Facebook) or open-web websites.
- In-store Advertising: Digital screens at the checkout, audio ads over the store speakers, and smart displays on refrigerator doors or aisle end-caps.
Global Business Examples
1. Walmart Connect (United States)
Walmart has leveraged its massive physical footprint to create a dominant omnichannel RMN. While many platforms focus on digital, Walmart Connect integrates in-store data.
Example: A snack brand can target a customer who frequently buys “organic snacks” via an ad on the Walmart app. If that customer then goes into a physical store and buys the product, Walmart can link that sale back to the digital ad through the customer’s loyalty profile.
Strategic Move: In 2024, Walmart’s advertising business contributed nearly a third of its total operating income, highlighting how retail media is becoming a core profit driver rather than just a side business.
2. Tesco Media & Insight Platform (United Kingdom)
Tesco uses its Clubcard loyalty program, which has over 20 million members, to provide brands with deep behavioral insights.
Example: A pharmaceutical company launching a new cough medicine can use Tesco’s data to target “Category Lapsers”—customers who used to buy cough medicine but haven’t in the last six months—with personalized digital coupons delivered via the Tesco app or direct mail.
Result: By focusing on “closed-loop” measurement, Tesco allows brands to see the exact “incrementality” of their spend (i.e., how many sales were truly caused by the ad).
3. Carrefour Links (Europe and Latin America)
Carrefour has positioned itself as a leader in European retail media through its “Carrefour Links” platform, which partners with tech companies like Google and LiveRamp.
Example in Taiwan: Carrefour Taiwan used Machine Learning to predict customer lifetime value. By delivering targeted ads primarily to high-value segments, they lowered their cost-per-action by 40% and increased ROAS by over 2.5 times.
In-Store Innovation: In France and Brazil, Carrefour is digitizing its physical stores with “smart” end-caps that display different ads based on the time of day or store traffic patterns.
4. Amazon Ads (Global)
Amazon is the pioneer and current market leader, holding a massive share of the RMN market.
Example: Beyond search ads, Amazon now uses its ownership of Prime Video and Twitch to offer “non-endemic” advertising. This means brands that don’t even sell products on Amazon (like car manufacturers or insurance companies) can use Amazon’s shopper data to target specific audiences during a football game or a live stream.
Benefits for Stakeholders
| Stakeholder | Primary Benefit |
| Retailers | High-margin revenue streams that offset the thin margins of traditional retail. |
| Brands | Access to “clean” first-party data in a world where third-party cookies are disappearing. |
| Consumers | More relevant, personalized advertisements and promotions that align with their actual needs. |