What retail media is
Retail media is what happens when a retailer becomes an advertising platform in its own right. It
sells placements on its site, in its app and on its storefront to brands and suppliers, monetising
both traffic and data about real purchases. For the advertiser this is access to an audience
standing at the shelf; for the retailer it is a new, high-margin source of revenue.
Why the segment is growing
- First-party data. With third-party cookies restricted, a retailer’s data on actual purchases
becomes unusually valuable for targeting. - Proximity to purchase. The ad is shown at the moment of product choice, so conversion beats
that of reach-oriented channels. - Precise attribution. The effect is measured on real orders rather than on indirect signals.
A deeper look at the market: Retail Media in 2025 — what the technology is, how it works and
which retailers need it: platforms, formats, economics and where to start.
Placement formats
| Format | Where it runs |
|---|---|
| Sponsored products | Catalogue search and category listings |
| Storefront banners | Home page, categories, product page |
| In-app advertising | Feed, push scenarios, storefront |
The link with personalization
Retail media and personalization draw on the same layer
of shopper behaviour data. The difference is the goal: personalization lifts conversion on the
retailer’s own storefront, while retail media monetises brand placements. Both are judged on
performance metrics — above all ROAS and
sales attribution.
Common errors
- Advertising at the expense of choice — too many placements depress conversion on the
retailer’s own storefront. - Weak attribution — without transparent analytics advertisers cannot see the effect and will
not scale budgets. - Ignoring relevance — off-target placements irritate shoppers and devalue the property.