Retail used to be straightforward—brands sold products, and stores took a cut. But in today’s digital landscape, the biggest revenue driver isn’t just selling goods—it’s selling attention. Enter retail media networks (RMNs), where retailers monetise their platforms by turning them into advertising powerhouses.
Retail giants like Amazon, Walmart, and Target no longer just sell products; they sell access to high-intent shoppers through strategically placed ads at the moment of purchase. With global retail media spending projected to surpass $100 billion by 2026, according to Flipkart data, RMNs have become a critical revenue stream. Brands are willing to pay top dollar to be seen at the perfect buying moment. “Beyond selling products, retailers now offer targeted advertising opportunities through in-store radio, digital screens, and static ads, redefining their role from just a retailer to a media platform.” Harvinderjit Singh Bhatia, CEO and co-founder of Radiowalla Network Limited, told BrandWagon Online.
Why are brands flocking to retail media?
For advertisers, RMNs provide something traditional ad platforms can’t—intent-driven consumers. Unlike social media or display ads that rely on demographic profiling and assumptions, RMNs tap directly into first-party data—insights from real purchase behaviour.
“Retail media networks bring the consumer closer to the point of purchase, boosting conversion and eliminating guesswork in attribution,” Ritika Taneja, head of E-commerce, GroupM India, said. “That combination of high-intent audiences and clear, sales-linked metrics makes retail media one of the most cost-effective channels for driving both immediate sales and long-term customer value.”
Simply put, ads on RMNs don’t just build awareness—they drive actual sales. The ability to track ad-attributed revenue allows brands to see real-time ROI, something traditional advertising struggles with.
From sellers to media giants
For retailers, RMNs have become a goldmine. Amazon’s ad business alone generated $38 billion in 2023, according to Forbes, making it one of the largest digital ad players after Google and Meta. Walmart’s retail media arm, Walmart Connect, brought in nearly $3 billion the same year, per Digital Commerce 360.
Why is this such a lucrative play? Because retailers already control the shopping environment. They don’t have to chase eyeballs—they already have them. Instead of relying solely on slim product margins, they can charge brands for visibility and monetise every stage of the shopping journey.
“Retail media networks align seamlessly with our goal of reaching parents and caregivers who actively seek high-quality baby care products. These platforms allow us to target specific customer segments using data-driven insights.” Apoorva Pandey, CMO, Baby Forest, explained.
The dark side of RMNs
No gold rush comes without challenges. While retail media networks promise precision and performance, advertisers increasingly question transparency. Are brands truly seeing a return, or are retailers manipulating data to make it seem so?
Chirag Chheda, Senior Vice President of Marketing at STRCH Active Pvt. Ltd., raises concerns: “With media networks, the accuracy of reporting is always in the grey. The ROI or ROAS is always achieved in some way or the other, which more often than not is not always true.”
Retailers control the ad space, targeting data, and measurement tools, making them both referees and players. Without independent verification, brands must trust retailers’ metrics, which may not always reflect reality.
Another issue is ad overload. With multiple retailers launching RMNs, brands must spread budgets across various platforms. Unlike Google or Meta, where campaigns reach broad audiences, retail media is fragmented. A brand must advertise separately on Amazon, Walmart, Target, and other RMNs, complicating media planning and increasing costs.
The future of retail media
Despite concerns over transparency and fragmentation, RMNs are evolving rather than fading away. Three major trends will shape their future:
- AI-driven personalisation – Machine learning will enable hyper-targeted ads, making promotions feel like tailored recommendations rather than intrusive advertisements.
- Shoppable ads and video integration – The lines between content and commerce will blur further, allowing consumers to purchase directly from interactive videos, such as adding ingredients to a cart while watching a cooking tutorial.
- Stronger data regulations and transparency – As privacy concerns grow, retailers must adopt privacy-first advertising models and ensure transparent reporting to maintain consumer trust.
The billion-dollar attention game
Retail media networks have fundamentally reshaped advertising, transforming retailers into media giants and revolutionising how brands reach consumers. By monetising their platforms, retailers have unlocked a massive revenue stream that continues to expand.
However, challenges like data transparency, ad saturation, and regulatory hurdles remain. The future of RMNs will depend on how well companies adapt to these issues. One thing is certain—in this new retail economy, attention is the most valuable commodity, and retail chains are aggressively competing to capitalise on it.