In recent years, the way brands advertise to shoppers has changed. As more people shop online (and spend more time in retailer apps), companies have shifted toward advertising in places where customers are already browsing and buying.

Retail media advertising is one of the biggest drivers of that shift. It means placing ads directly on retailer-owned platforms - like websites, mobile apps, or even digital screens inside physical stores. That’s different from traditional digital ads, which usually show up on unrelated sites or social feeds.

This article explains what retail media advertising is, how it works, and the types of advertising it includes. It also walks through major examples and how retail media fits into the broader digital marketing landscape.

What Is Retail Media Advertising

Retail media advertising is digital advertising where brands place ads on retailer-owned platforms - websites, apps, and in-store displays - to reach shoppers close to the moment of purchase.

These ads often use a retailer’s own data on shopping behavior and purchase history to target customers who are actively considering a purchase. You’ll typically see them in places like product search results, category pages, and increasingly, on screens near checkout.

Unlike traditional digital ads that appear “out in the wild” across the internet, retail media ads show up inside shopping environments. That’s what makes them feel more relevant: they’re tied to what someone is already looking for.

The system that runs these placements is usually called a retail media network. Retail media networks help advertisers use retailer data to reach the right shoppers at the right time.

Retail media has grown alongside e-commerce. As more shopping moved online, retailers realized their websites and apps weren’t just storefronts - they could also be high-value advertising inventory. That creates a new revenue stream for retailers and a more direct way for brands to influence purchase decisions.

Types Of Retail Media Advertising

Retail media advertising generally falls into three categories, based on where the ads appear.

1. On-Site Retail Media

On-site retail media includes ads that appear directly on a retailer’s website or app. This is the most common type.

Examples include:

• Sponsored product listings in search results

• Banner ads on the homepage

• Display ads on product detail pages

If you search “headphones” on Amazon and see certain products labeled Sponsored, that’s on-site retail media. These placements put products in front of shoppers who are already actively searching for something similar.

2. Off-Site Retail Digital Media

Off-site retail media uses retailer data, but the ads show up outside the retailer’s own website or app.

For example, if you browse products on Walmart but don’t buy, you might later see ads for those products while reading the news or scrolling social media. That’s possible because retailers work with advertising partners to activate their customer data in privacy-compliant ways.

This helps brands stay in front of shoppers after they leave the retailer’s site. It’s part of a broader ecosystem where retailer data powers targeted ads across the wider internet.

3. In-Store Retail Advertising

In-store retail advertising brings digital placements into physical stores. As retailers add more tech in-store, they’re creating new ways for brands to reach shoppers while they’re walking the aisles.

Examples include:

• Digital screens on shopping carts

• Interactive displays at the end of aisles

• Video screens near checkout counters

These formats can also be dynamic. Ads may change based on time of day, store location, or even weather conditions. The goal is to connect online-style targeting with real-world shopping behavior.

How Retail Media Networks Work

A retail media network is the system that connects retailers, brands, and shoppers through advertising. Understanding how it works makes the growth of retail media a lot easier to understand.

Retail media networks typically involve:

• Retailers: Provide the platform (website, app, store) and customer data

• Brands: Pay for ads to reach shoppers

• Shoppers: See ads while browsing and buying

Behind the scenes, the system includes data tools that organize customer information, ad servers that deliver ads, and analytics that track performance.

What makes retail media networks different is their use of first-party data - data the retailer collects directly from customers. That includes what people search for, what they buy, and how they browse.

First-party data has become more valuable as privacy changes make it harder to track users across websites. Retailers already have direct relationships with shoppers, so they can use their data without relying on third-party cookies.

Retail media is also known for “closed-loop” measurement. In a closed-loop system, the same platform that shows the ad also sees the purchase, making it easier to measure whether the ad led to a sale.

Benefits Of Retail Media Advertising

Retail media has grown quickly because it creates clear advantages for all parties involved.

For retailers

• New revenue stream: Retailers make money selling ad space on their digital properties

• Better shopping experience: Well-targeted ads can help shoppers discover relevant products

• Stronger brand partnerships: Ad relationships often deepen retailer-brand collaboration

For brands

• Targeted reach: Ads hit shoppers who are already in buying mode

• Better measurement: It’s easier to connect ad spend to actual sales

• First-party data access: Brands benefit from retailer customer data for targeting

For shoppers

• More relevant ads: Ads match what they’re browsing or buying

• Product discovery: Ads can surface products they might not have found

• Integrated experience: Ads appear naturally within the shopping environment

These benefits help explain why retail media continues to take a larger share of digital ad budgets. Many industry estimates place retail media at around 15% of digital ad spend, with continued growth expected.

Retail Media Examples From Major Retailers

Looking at major retailers helps make retail media more concrete.

Amazon Advertising

Amazon’s retail media offering is the largest in the industry. It includes:

• Sponsored Products in search results

• Sponsored Brands featuring a logo + multiple products

• Display ads across Amazon’s website and app

Amazon also extends reach through Amazon DSP, which allows brands to use Amazon data to place ads off-site.

Walmart Connect

Walmart Connect offers placements online and in physical stores, including:

• Search ads on Walmart.com

• Display ads across Walmart.com and the Walmart app

• In-store screens that reach shoppers in Walmart locations

Walmart uses customer data to help brands target audiences based on shopping behavior.

Target Roundel

Target’s retail media network, Roundel, focuses on connecting digital and in-store experiences:

• On-site ads across Target.com

• Off-site ads that reach Target shoppers elsewhere

• In-store digital signage in Target locations

Roundel emphasizes unified messaging across channels so brands can reach customers throughout the shopping journey.

Getting Started With Retail Media

If you’re considering retail media, start with a few basics.

First, identify which retail media networks align with your products and audience. Different retailers attract different customer profiles, so it helps to start where your customers already shop.

Next, review the ad formats and placement options available on each network. Most platforms offer multiple formats with different targeting options, placements, and pricing models.

It also helps to set clear goals upfront. Common objectives include:

• Increasing sales of specific products

• Improving brand visibility within a category

• Supporting new product launches

• Defending market share against competitors

Start with a test budget, learn what works, then scale based on results. Most networks allow smaller starting investments and provide enough data to refine quickly.

Track performance using metrics that matter for your business. Sales is the outcome, but metrics like CTR, ROAS, and new-to-brand customers can help explain what’s driving performance.

Measuring Retail Media Performance

Measurement is one of retail media’s strongest selling points.

Common retail media metrics include:

• ROAS (Return on Ad Spend): revenue per dollar spent

• CTR (Click-Through Rate): percentage of people who click after seeing an ad

• Conversion Rate: percentage of people who purchase after clicking

• CPA (Cost Per Acquisition): cost to acquire a new customer

Retail media measurement is powerful because the ad and the purchase happen in the same environment. That makes attribution cleaner than traditional digital ads, where connecting ad exposure to purchase often requires more complex tracking.

Most retail media platforms provide real-time dashboards so teams can monitor performance and adjust quickly.

The Future Of Retail Media Advertising

Retail media keeps evolving as technology and shopping behavior shift.

Key trends include:

• Expansion beyond traditional retailers: More companies with direct customer relationships (food delivery, airlines, financial institutions) are building media networks

• Online + offline data integration: Retailers are connecting e-commerce and in-store data for stronger targeting

• More advanced formats: Retail media is moving beyond sponsored listings into video and interactive placements

• Increased privacy focus: Reliance on first-party data positions retail media well as privacy regulations tighten

As more networks emerge, the landscape gets more complex. Brands will need strategies for working across platforms while maintaining consistent messaging and measurement.

Elevate Your Growth Strategy

Retail media advertising gives brands a direct way to reach shoppers while they’re making purchase decisions. Placing ads inside retail environments can influence choice and drive sales in a way that’s measurable.

Success usually comes down to three things: understanding how each platform works, building ads that stand out in that environment, and measuring performance so you can keep improving.

Darkroom helps brands build retail media strategies that align with broader growth goals. By combining retail media with other digital marketing approaches, brands can reach customers across the entire shopping journey.

Schedule a call to explore how Darkroom can help your business leverage retail media advertising for sustainable growth.

FAQs About Retail Media Advertising

How does retail media advertising differ from traditional digital advertising?
Retail media ads appear directly on retailer platforms where people shop and use retailer first-party data for targeting. Traditional digital ads appear across broader sites and often rely on third-party tracking.

What makes Amazon the leader in retail media networks?
Amazon leads due to scale, early adoption, sophisticated targeting, and the direct connection between ads and purchases on its platform.

How can smaller brands compete in retail media environments?
Smaller brands can compete by focusing on specific categories, targeting niche segments, and starting with smaller test budgets to learn before scaling.

What is the future of retail media advertising?Retail media is expanding beyond traditional retailers, integrating online/offline data, adopting more advanced formats like video, and growing due to its first-party data foundation.