Retail media is becoming a major part of digital advertising. It refers to ad placements on the digital properties of retailers, including websites, mobile apps, and sometimes in-store screens. These ads are usually targeted and delivered through a platform or network that retailers either manage themselves or outsource to an adtech partner.
The key advantage of retail media is the timing. When consumers are browsing a retailer’s site or app, they are already in a shopping mindset. This gives brands the opportunity to reach buyers when they’re close to making a decision. Whether it’s a sponsored product listing, a banner ad promoting a new brand, or native content that fits into the customer journey, retail media connects with users during high-intent moments.
Most retail media formats fall into a few categories. Sponsored product placements are common on e-commerce platforms and usually appear alongside organic search results. Banner ads or display placements can appear throughout category or product pages. Native ads are integrated into the user experience, often matching the look and feel of the retailer’s platform. All of these can be targeted using shopper behavior, purchase history, and real-time site activity.
For brands, retail media provides a way to access valuable first-party data. Since third-party cookies are going away, reaching shoppers through retailers—who have their own logged-in user data—is becoming more important. Advertisers can use this data to target users by interest, purchase patterns, or specific product categories. That level of targeting helps drive better ROI compared to less contextual environments.
Retailers can choose to run their own retail media networks, like Amazon, Walmart Connect, or Target’s Roundel, or they can partner with platforms that help them sell and serve ads. Third-party platforms offer tools for campaign management, audience segmentation, reporting, and optimization. Brands can also use demand-side platforms (DSPs) to access retail inventory programmatically.
As the channel grows, more brands are shifting budget into retail media. It blends the performance focus of search with the data advantages of a closed-loop environment. For retailers, it creates a new revenue stream and strengthens relationships with suppliers. For advertisers, it’s a way to reach the right consumers at the right time with more measurable results.
The growth of retail media is reshaping how digital campaigns are planned and executed. Whether managed in-house or through partners, it is quickly becoming a standard part of modern advertising strategy.