Retail Media's Next Act: Strategic Consolidation and Data-Led Reinvention

Jul 22, 20254 min read

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TL;DR: Retail Media at a Crossroads

Retail media is no longer about ad slots — it’s about data-driven ecosystems. The winners will be those who consolidate, differentiate, and innovate with purpose.

Market Mood: Strategic clarity over sheer scale
Leaders: Amazon, Walmart, Target — but challengers rising
Power Tech: AI, creative automation, CRM integrations
Strategic Levers: First-party data, non-media monetization, global ops
Call to Action: Innovate with intent — or be consolidated

Executive Summary

Retail Media Networks (RMNs) are entering a decisive phase. After 192% growth since 2020, the space has reached saturation — 94 RMNs now operate in a fragmented landscape demanding consolidation, strategic clarity, and operational maturity.

Brands investing $1M+ per RMN seek more than impressions — they expect precision, speed, and measurable value. Networks must respond by evolving from ad sellers to proprietary-data platforms and innovation partners. The path forward: scale with purpose, or risk irrelevance.

Strategic Brief: 10 Signals Driving the Shift

Market surged from $18.8B (2020) to $54.9B (2024) → Scale is undeniable, but fragmentation outpaces differentiation — a correction looms.
94 RMNs in 2024, up from 28 in 2020 → The market is overcrowded. Expect rationalization, especially among mid-tier players.
45% of RMNs earn >40% of revenue from non-media solutions → Monetization is shifting from ad inventory to proprietary data, insights, and tech — a defining IP evolution.
Luxury sector RMN adoption rose from 22% to 34% YoY → High-end brands are no longer hesitating. Retail media is now a cross-vertical imperative.
First-party data is emerging as proprietary IP → RMNs aren’t just retailers; they’re becoming data platforms and tech companies, competing with Meta and Amazon on insight ownership.
69% of brands use self-service tools; only 29% lean on agencies → Control is shifting in-house — but smart brands use agencies to integrate RMNs with loyalty, search, and CRM.
Top brand complaint: 34% cite slow creative-to-market speed → Operational delays undermine ROI. Networks that master speed-to-market win trust — and budgets.
86% of RMNs deploy automation; 72% use AI → Tools abound, but without clean data and defined use cases, most AI won’t deliver meaningful gains.
Offsite spend hits 53% of total RMN investment → RMNs are expanding beyond display and search — into commerce media, CTV, and programmatic ecosystems.
Only 50% of brands find RMN performance comparability “somewhat easy” or better → Standardization is lagging. Without it, cross-network optimization is guesswork.

Missed but Critical Forces Shaping RMN Evolution

1. Innovation Dynamics

The buyer mindset has shifted: "ease of implementation" now ranks below commercial terms and innovation roadmaps when selecting tech partners.
Retailers seek tailored tech solutions and specialized talent — "good enough" is no longer acceptable in a post-scale world.
First movers commercializing non-media capabilities (e.g. insights, creative automation) gain competitive edge and unlock new revenue streams.

2. Proprietary Data as Core IP

First-party data is no longer just a strategic asset — it’s a monetizable IP foundation.
Platforms like Dentsu’s Merkury, offering cookieless identity resolution, set a precedent: proprietary data tech will drive next-gen RMN value.
Scalable, non-media solutions — from segmentation tools to creative intelligence — are now key differentiators, not side plays.

3. Regulatory and Geopolitical Headwinds

As global privacy rules tighten and cookies sunset, RMNs must lean into owned data — or lose targeting relevance.
Dentsu’s multi-market “buy-side media” model shows how geographic agility is becoming table stakes in global retail media.

4. Operational Maturity

RMNs now juggle complex, distributed priorities, not singular pain points. This signals a shift from early-stage chaos to structured scaling.
Internal maturity is improving: reported conflicts with trade and merchant teams are declining, indicating tighter alignment and better governance.

5. Cross-Sector Convergence

Strategic partnerships — like Albertsons × NBCUniversal — exemplify retail media’s evolution into cross-sector ecosystems.
Brands increasingly align RMN activity with loyalty, search, and full-funnel strategies. Silos are collapsing.
Non-endemic advertisers are entering the space. RMNs must prepare to serve categories beyond their retail DNA.

Landscape Snapshot: 2025 Competitive Terrain

Mass retailers and grocery leaders dominate RMN budgets, but the real growth is in commerce media, offsite activations, and cross-industry alliances. Expect contraction among copycat RMNs, while differentiated players scale through tech-first strategy and non-media monetization.

Risk Radar: What Keeps C-Suites Up at Night

Platform Wars
(High Impact / High Likelihood)
Retail Media Networks now directly compete with Meta, Google, and Amazon — not just for ad dollars, but for data control. The risk isn’t hypothetical: brands are reallocating budgets toward platforms that offer seamless, measurable, full-funnel performance. RMNs that can’t match platform-grade targeting and attribution will lose share fast.

Tech Misalignment
(High Impact / Medium Likelihood)
Choosing tech based on cost rather than strategic fit creates brittle foundations. When innovation roadmaps are sacrificed for short-term savings, RMNs lock themselves into inflexible systems that underdeliver. The result: high spend, low agility, and stalled transformation.

Brand Fragmentation
(Medium Impact / High Likelihood)
Misalignment between internal brand teams (in-house, agency, retailer) leads to fragmented budgets, disjointed messaging, and unclear accountability. With most brands using multiple RMNs, the likelihood of internal conflict is high — and so is the drag on performance.

Measurement Confusion
(High Impact / Medium Likelihood)
Without standardized KPIs, brands struggle to compare RMN effectiveness. This undermines trust and makes optimization guesswork. The cost isn’t just inefficiency — it's missed opportunities and misallocated spend across networks.

AI Overreach
(Medium Impact / Medium Likelihood)
While adoption is widespread, many RMNs deploy AI without defined business use cases or clean data inputs. The result: superficial gains, mounting tech debt, and loss of stakeholder confidence in AI initiatives that overpromise and underdeliver.

Executive Moves to Make Now

✔ Audit RMN partners by data fidelity and audience overlap
✔ Invest in scalable tech, not just fast fixes — roadmap wins over cost
✔ Use agencies to bridge silos between RMNs, loyalty, and CRM
✔ Push for parity in self-service tools across all JBPs
✔ Align AI/automation with specific business problems — not hype