Retail media

What it is

Retail media puts paid placements at the point where a shopper is already choosing what to buy, most visibly as sponsored products in a retailer's on site search and category pages. Beyond the retailer's own site, most networks now sell offsite media, connected TV and in store screens, all planned and measured with the retailer's loyalty and transaction data. Amazon Ads is the largest example, with grocers and pharmacy chains running their own networks alongside it.

Why it matters

Search behaviour for products has partly moved into retailer apps and marketplaces, so brands that only buy general search miss the moment of purchase. Retail media also closes the loop on measurement, because the retailer can link exposure to actual sales of the advertised SKU rather than a modelled proxy. For retailers it is high margin revenue that funds price investment and site improvements.

How it works

Brands set up a seller or advertiser account with the retailer, choose keyword or product targeted sponsored placements, then bid on an auction basis against other sellers of similar items. Success depends as much on the product detail page as on the bid, so teams fix titles, images, attributes, reviews and stock availability before scaling spend. Reporting from the retailer is then reconciled against internal sales data and, where available, incrementality tests.

When it applies

It applies to any brand selling physical products through retailers, marketplaces or grocery delivery apps, and to retailers with enough traffic and first party data to sell inventory. It becomes a priority when a meaningful share of your category's demand starts and ends inside a retailer's own search box.

Examples

• A drinks brand bids on sponsored product placements for category terms in a grocery app during a summer promotion
• A beauty brand buys offsite display through a pharmacy retailer's network, targeted at lapsed buyers of the category from loyalty data
• A supermarket launches an in store screen and audience data offering, selling it to suppliers alongside on site sponsored listings

How it is measured

• Return on ad spend and total advertising cost of sale for each retailer
• Share of voice or share of shelf on priority category and brand terms
• New to brand or new to category buyer share from retailer reporting
• Incremental sales lift measured through holdout or geo tests