Retail media
Advertising sold by retailers and marketplaces on their own sites, apps, stores and data.
What is retail media?
Retail media is advertising sold by retailers, marketplaces and other commerce businesses using their own digital properties, physical stores and customer data. Formats include sponsored product listings in search results, display and video on retailer sites and apps, in-store screens and, increasingly, offsite campaigns that use retailer audiences on other publishers. Its distinctive value is the link between ad exposure and purchase data, which lets brands measure sales outcomes more directly than in many channels. Retail media is part of the wider commerce media category, which includes delivery apps, travel sites and payment providers that run similar models.
How retail media works
Retailers offer sponsored listings, display and video placements and audience segments built from shopper behaviour.
- A retailer packages its onsite, offsite and in-store ad placements and audience segments into an advertising offer.
- Brands, often suppliers of products the retailer sells, plan campaigns targeting shoppers by category, behaviour or purchase history.
- Ads run on the retailer’s own surfaces or on external media using the retailer’s audiences.
- The retailer reports results, often matching ad exposure to sales recorded in its systems.
Why it matters
Advertisers reach people close to purchase and can connect media to sales. Retailers gain a new revenue line.
For advertisers
Brands can reach people close to purchase and see sales linked to campaigns, which helps justify spend.
For publishers
For retailers and marketplaces acting as media owners, it turns existing traffic and data into a high-margin revenue line.
For agencies
Each retailer has its own tools, formats and reporting, so agencies need ways to compare results across retail networks.
Practical example
A snack brand sponsors the top result for a category search on a grocery app.
Key considerations
- Measurement methods differ between retailers, which makes like-for-like comparison difficult.
- Onsite ads must be balanced against the shopping experience, so too many sponsored results can frustrate customers.
- Offsite retail media relies on privacy-safe data matching, such as clean rooms, rather than sharing raw customer data.
More Retail Media terms
Frequently asked questions
What is the difference between onsite and offsite retail media?
Onsite ads appear on the retailer’s own site, app or stores; offsite campaigns use the retailer’s audiences to reach shoppers on other publishers and channels.
Is retail media only for brands sold by the retailer?
Mostly, but not always. Endemic brands sell through the retailer, while non-endemic advertisers, such as financial or travel brands, may also buy access to its audiences.
How is retail media different from commerce media?
Retail media is the retailer-led part of commerce media, which also covers other businesses with transaction data and digital audiences.
Does Vertoz work with retail media?
Yes. IncrementX offers representation and monetization services for retail media owners.