Retail media is the fastest-growing channel in digital advertising. What started as on-site ads on retailer websites is now scaling into full programmatic ecosystems. For media agencies, this means new opportunities—but also new complexities in measurement, brand safety, and supply chain transparency.
What Is Retail Media in the Programmatic Context?
Retail media networks (RMNs) allow brands to buy ad space on retailer-owned digital properties and use retailers’ first-party data for targeting. Increasingly, these networks plug directly into demand-side platforms (DSPs), enabling programmatic access to retail audiences at scale.
Why it matters
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Combines audience precision with transactional proximity.
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Offers a privacy-compliant alternative to third-party cookies.
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Opens premium inventory in closed ecosystems to open programmatic pipes.
Key Facts
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Global retail media ad spend is forecast to reach $128B in 2025, making it the third-largest digital channel after search and social (GroupM, 2023).
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67% of brands plan to increase investment in RMNs in the next two years (IAB Europe, 2023).
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Retail media is growing at a CAGR of ~20%, outpacing most other digital channels (WARC, 2023).
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By 2026, programmatic pipes are expected to handle the majority of retail media off-site campaigns (Insider Intelligence, 2024).
How Programmatic Is Reshaping Retail Media
Off-site expansion
RMNs are extending beyond retailer websites into open web and CTV inventory, enabled by programmatic integrations.
Data leverage
Retailers’ first-party purchase data can be activated in programmatic campaigns, giving agencies deterministic targeting that rivals walled gardens.
Transparency challenges
Programmatic retail media introduces familiar risks: supply path opacity, inflated fees, and questions of measurement consistency.
Forecasts and Trends
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Convergence of RMNs and DSPs: Agencies will see retail data available alongside standard programmatic buys, blurring channel distinctions.
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Measurement push: Expect demand for standard KPIs beyond sales lift, including incrementality and carbon impact.
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Marketplace competition: With hundreds of RMNs emerging globally, fragmentation will drive consolidation by 2026.
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Brand safety: As RMNs extend into open web programmatic, suitability controls will be critical to maintain trust.
Practical Takeaways / Solutions
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Evaluate RMN quality: Not all retail networks have scale or clean data. Agencies must vet audiences and measurement rigor.
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Integrate into SPO strategy: Treat RMN supply paths like any other—optimize for efficiency, transparency, and sustainability.
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Align KPIs with clients: Define whether the campaign goal is incremental sales, brand equity, or efficiency.
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Negotiate data access: Ensure contracts provide visibility into audience activation and log-level reporting where possible.
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Prepare for fragmentation: Agencies will need frameworks to manage multiple RMNs within one programmatic buying structure.
Conclusion
Retail media is moving from niche to mainstream—and programmatic is the driver of that transition. For agencies, the challenge is to capture the opportunity of retail-first data while maintaining the same discipline used in programmatic display: transparency, efficiency, and safety. Those who master retail media programmatic buying will gain a decisive edge in the evolving digital ecosystem.
FAQs
Q1. What makes retail media different from traditional programmatic display?
The use of first-party retailer data, which provides high-quality audience signals directly tied to purchase behavior.
Q2. Are all retail media networks programmatic?
No. Many RMNs began as closed platforms, but the trend is toward programmatic integrations that extend reach beyond retailer-owned sites.
Q3. What is the biggest risk in programmatic retail media?
Supply fragmentation and inconsistent measurement standards, which can inflate costs and obscure true ROI.
References
GroupM. (2023). This Year, Next Year: Global End-of-Year Forecast. GroupM Research.
IAB Europe. (2023). Retail Media Measurement Guidelines. IAB Europe.
Insider Intelligence. (2024). Retail Media Forecast 2024–2026. Insider Intelligence.
WARC. (2023). Global Advertising Trends: Retail Media. WARC.
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