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Digital advertising experienced a transformative shift in 2023, with retail media networks emerging as a focal point for advertisers seeking precision and efficacy. These networks defined how brands connect with consumers, utilizing the unique environment of digital storefronts to deliver targeted and personalized advertisements. Below, we’ll discuss the diverse landscape of retail media networks, examples of these platforms, and how Experian is at the forefront of empowering advertisers within this evolving marketing ecosystem.
What are retail media networks?
A retail media network (RMN) is an advertising platform retailers use in their digital storefronts or online platforms. It lets brands and advertisers promote their products or services directly within the retail environment where consumers make purchasing decisions. Unlike traditional advertising channels, RMNs use the retailer’s first-party data to offer targeted and personalized advertising experiences.
How important is it to advertise with RMNs?
RMNs offer advertisers a unique advantage — a rich set of first-party data on consumers, both on and off the platform. On-platform data includes user engagement insights, demographic information, and behavioral patterns. RMNs offer off-platform first-party data, such as cross-channel integration and CRM data integration. This data is especially important as the industry sees a shift away from the reliance on third-party cookies.
One of the key challenges brands face is the lack of tracking abilities through the customer journey. However, the closed-loop measurement and attribution capabilities within RMNs help advertisers track the entire consumer journey, linking campaign spend directly to final sales and in-store purchases. The precision and accountability offered by RMNs make them a crucial strategy in the ever-evolving world of digital advertising.
Trends with big RMNs
Here is a list of retail media networks and their performance in 2023. The information below offers insights into their reach and effectiveness in driving sales and brand visibility.
Amazon
According to Pacvue’s Q4 guide, Amazon Media Network experienced a year-over-year decline in its daily spend. However, a notable quarterly increase of 3.2% suggests a recent expansion in this ad type. The current average CPC for Amazon-sponsored products is $1.21, marking a substantial 7.1% year-over-year increase. Return on ad spend (ROAS) showed a 1.5% year-over-year decrease but increased by 6.1% quarter-over-quarter, potentially caused by more efficient campaigns. The beauty category showed a particularly strong performance with a remarkable 69.4% year-over-year increase.
Walmart
Walmart’s advertising revenues are surging at a rate twice that of Amazon, according to the Pacvue Q4 report. This quarter, the Walmart Media Network experienced a substantial 40% boost in ROAS, now at $6.93. This advancement can be attributed to strategic adjustments in the algorithm and bid rules and the incorporation of new bid features. Walmart’s CPC also witnessed a noteworthy 18.3% year-over-year decrease and a 14.5% year-over-year surge in average ad spend. Walmart’s growth trajectory emphasizes the shift in consumer behavior toward product discovery, as many consumers research products on the website before purchasing.
Kroger
Kroger developed an advanced retail media network that launched in October 2023. Their platform offers advertisers a more streamlined way to activate, measure, and optimize their campaigns, leading to improved advertising performance. The self-serve advertising platform lets advertisers promote products across the Kroger family of brands. Kroger is the biggest grocery chain in the country with a strong first-party shopper data set, providing more advanced audience targeting than many other grocery RMNs.
Target
Target launched its retail media network, Roundel, in 2016 to enhance the connection between brands and guests through curated media experiences. Roundel uses Target’s rich insights to create personalized advertising campaigns, reaching guests across several platforms and premium publishers. Over the past two years, Roundel has experienced over 60% growth, delivering over one billion in value for Target in 2021 and 2022. With a team of over 500 members, the platform differentiates itself by offering easy-to-use advertising solutions to brands of all sizes. Target plans to launch Roundel Media Studio, a self-service buying tool, in early 2024.
Marriott
In partnership with Yahoo, Marriott has created a travel media network that lets advertisers target consumers based on the hotel chain’s guest data. This collaboration allows ads to be strategically placed on various platforms, including the hotel’s websites. Marriott Media Network’s rollout will start on mobile platforms similar to traditional RMNs. Over time, it will extend to include ad placements on TV screens in guest rooms, Wi-Fi portals, and various digital screens in other areas, like lobbies and bars. This innovative approach in the hotel industry offers marketers diverse opportunities to reach their target audience.
Nordstrom
Nordstrom Media Network has shown considerable success, generating over $40 million in revenue and collaborating with several brand partners. Introduced in 2019, this network initially experimented with off-site campaigns and later expanded to on-site sponsored ads in 2021. Nordstrom Media Network offers data from 32 million customers and digital properties with nearly two billion annual visits. The network’s focus on personalizing the customer experience helps it stand out in the competitive retail media space and makes it a valuable player in the evolving digital advertising landscape.
CVS
With CVS Media Exchange, advertisers have access to a data set of 74+ million customers. This platform creates tailored campaigns for companies, helping their ads reach customers at the most critical points in their shopping journey. With options like display, video, audio, social, and in-store ad options, advertisers are seeing increases in product purchases and brand awareness.
Instacart
Instacart has a retail media network through its own platform and a tool called Carrot Ads, which helps grocery store chains develop RMNs through Instacart. It has a network of over 1,400 retail brands, helping advertisers reach their target audience. Advertisers have access to insights and automation to create relevant ads and track their progress.
Companies like Sprouts are using Carrot Ads to create and grow their own RMNs. Together, Instacart and Sprouts offer brands a unique opportunity by facilitating targeted online campaigns on Sprouts’ website. This collaboration provides access to metrics like sales and ROAS, offering a comprehensive view of campaign performance.
DoorDash
DoorDash offers a comprehensive suite of advertising tools for restaurants and brands to expand their reach on the DoorDash marketplace. This flexible advertising platform extends across diverse categories, like restaurants, grocery, convenience, alcohol, and more. The platform has demonstrated success with an average return on ad spend of 4.1x from sponsored product campaigns and an average of 70% new-to-brand customers.
Reasons behind these trends
The surge in advertising trends within RMNs can be attributed to several critical factors, including the following:
Rising retail media competition
The competitive landscape within the retail world has intensified, with major players competing for a larger share of the advertising pie within their respective RMNs. This surge in competition among retailers like Lowe’s One Roof, Sprouts, 84.51, and Albertson’s Media Collective has led to a continual evolution of features and capabilities. Advertisers benefit from this competitive spirit because it drives innovation and offers enhanced tools and opportunities to refine their advertising strategies. The competitive edge creates an environment where RMNs continually improve and adapt to meet the needs of both advertisers and consumers.
Third-party cookie deprecation
Major web browsers are getting rid of third-party cookies, so advertisers must reevaluate their targeting and tracking strategies. Because of this, the first-party stronghold of RMNs is particularly valuable. Advertisers can rely on their reservoir of first-party data with RMNs to maintain effective audience targeting and measurement capabilities. The emphasis on first-party data aligns with advertisers’ needs in the post-cookie era, making RMNs crucial partners in the pursuit of effective and privacy-conscious advertising solutions.
Crafting your RMN ad strategy
Crafting an effective RMN ad strategy is a multifaceted process that involves careful planning. You start with clean, scaled, and scoped data, then everything waterfalls from there. When done correctly, you reach the right audience, your ROAS/ROI results improve, your marketing spend is more effective, and your advertisers want to spend more with your RMN. Here are steps to consider when developing your RMN ad strategy.
Choose the best RMN partner for your needs
Selecting the right partner is a critical first step. Ensure your partner seamlessly integrates with your existing MarTech stack, avoiding any additional workload for your existing team. A symbiotic relationship with your RMN partner enhances collaboration and streamlines your advertising initiatives.
Experian’s comprehensive data and identity solutions can help RMNs maximize their opportunity, withour new solutiontailored to enhance RMNs’ strength in first-party shopper data. Experian’s solution helps RMNs unlock expanded customer insights, enriched audiences for activation, identity resolution for cross-channel audience targeting, and real-time measurement and attribution. This comprehensive solution is designed to help RMNs capture more advertising revenue. Our goal is to ensure you capture the most advertising dollars and make your RMN operate at its peak performance.
Utilize third-party data
One of the cornerstones of an effective RMN strategy is the integration of third-party data. This is where Experian steps in as a critical ally. Experian’s robust third-party data solutions can enhance an RMN’s first-party data to create more scale and scope for RMN audiences. This, in turn, will open up more opportunities for advertiser investment.
Utilize first-party data
The main advantage of RMNs is the access to first-party data. Advertisers can use this data to create personalized and targeted campaigns. By tailoring your messages based on consumer expectations, preferences, behaviors, and purchase history, you create a more engaging and relevant ad experience. This not only boosts the effectiveness of your campaigns but also fosters a deeper connection between your brand and the audience.
Promote relevant products
Personalized ads are crucial for capturing audience attention and driving conversions. With retail media platforms, advertisers can personalize their campaigns to individual shoppers. Promoting products that align with your audience’s specific needs and preferences increases the likelihood of conversions.
Consider the consumer journey
Strategic ad placement within the consumer journey is pivotal. Consider targeting consumers late in the decision-making process when they’re in a shopping mindset. Placing ads at this point in the customer journey increases the chance of converting prospects into customers. Understanding the customer journey within an RMN system allows for a more targeted and impactful advertising strategy.
Measure data and adapt
The final step in the process is continuous measurement and adaptation. Retail media platforms include powerful analytics tools that let advertisers track and analyze ad performance in real time. Use these insights to adapt your strategy. A data-driven approach ensures your campaign remains responsive to the changing marketing dynamics.
Elevate your advertising strategy with Experian
Transform your advertising strategy with Experian’s cutting-edge Consumer View solutions. These advanced tools excel in audience segmentation and easily integrate your first-party data with our comprehensive third-party insights. This ensures the seamless activation of your data across online and offline channels. Experian also has custom audiences and audiences that are available on-the-shelf of most major platforms. This and our onboarding capabilities make Experian the perfect partner for your RMN strategy.
Connect with a member of our team today to take the next step in elevating your advertising campaigns.
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Note: While third-party cookies are no longer being phased out, this webinar was recorded in 2023 when cookie deprecation was still a key industry focus. The strategies discussed reflect that time frame and remain relevant for addressing broader signal loss challenges. With major browsers discontinuing support for third-party cookies, marketers must rethink how to identify and engage their audiences. Contextual advertising offers a privacy-safe solution by combining contextual signals with machine learning to deliver highly targeted campaigns. In a Q&A with our experts with eMarketer, Jason Andersen, Senior Director of Strategic Initiatives and Partner Solutions at Experian, and Alex Johnston, Principal Product Manager at Yieldmo, we discuss how contextual advertising addresses signal loss, improves addressability, and delivers better outcomes for marketers. The macro trends impacting marketers How important is it for digital marketers to stay informed about the changes coming to third-party cookies, and what challenges do you see signal loss creating? Jason (Experian): Third-party cookies have already been eliminated from Firefox, Safari, and other browsers, while Chrome has held out. It’s just a matter of time before Chrome eliminates them too. Being proactive now by predicting potential impacts will be essential for maintaining growth when the third-party cookie finally disappears. Alex (Yieldmo): Third-party cookie loss is already a reality. As regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) take effect, more than 50% of exchange traffic lacks associated identifiers. This means that marketers have to think differently about how they reach their audiences in an environment with fewer data points available for targeting purposes. It’s no longer something to consider at some point down the line – it’s here now! Also, as third-party cookies become more limited, reaching users online is becoming increasingly complex and competitive. Without access to as much data, the CPMs (cost per thousand impressions) that advertisers must pay are skyrocketing because everyone is trying to bid on those same valuable consumers. It’s essential for businesses desiring success in digital advertising now more than ever before. Solving signal loss with contextual advertising How does contextual advertising help marketers engage audiences with new strategies like machine learning and artificial intelligence (AI)? Jason (Experian): Contextual advertising helps marketers engage audiences by combining advanced machine learning with privacy-safe strategies. We focus on using AI and machine learning to better understand behavior, respect privacy, and deliver insights. As third-party cookies go away, alternative identifiers are coming to market, like Unified I.D. 2.0 (UID2). These are going to be particularly important for marketers to be able to utilize them. As cookie syncing becomes outdated, marketers will have to look for alternative methods to reach their target audiences. It’s essential to look beyond cookie-reliant solutions and use other options available regarding advertising. Alex (Yieldmo): There’s been a renaissance in contextual advertising over the last couple of years. Three key drivers are shaping this shift: The loss of identity signals is forcing marketers to rethink how they reach audiences. Advances in machine learning allow us to analyze more granular contextual signals, identifying patterns that are most valuable to advertisers. Tailored models now use these signals to deliver more effective campaigns. This transformation is occurring because of our ability to capture and operate on richer, more detailed data. Reach consumers with advanced addressability How does advanced contextual advertising help marketers reach non-addressable audiences? Jason (Experian): Advanced contextual advertising helps marketers reach non-addressable audiences by taking a set of known data (identity) and drawing inferences from it with all the other signals we see across the bidstream. It’s about using a small seed set of customers, those who have transacted with you before or match your target audience, and training contextual models to make the unknown known. Now we can go out and find users surfing on any of the other sites that traditionally don’t have that identifier for that user or don’t at that moment in time and start to be able to advertise to them based on the contextually indexed data. Alex (Yieldmo): I think the exciting opportunity for many people in the industry is figuring out how to reach your known audience in a non-addressable space, that is based on environmental and non-identity based signals, that helps your campaign perform. Machine learning advancements allow you to take your small sample audience and uncover those patterns in the non-addressable space. High-quality, privacy-resilient data sets are critical for building these campaigns. Companies like Experian, with deep, rich training data, are well positioned to support advertisers in building extension audiences. Creative strategies that improve ad performance Why does creative strategy remain essential for digital advertising success? Jason (Experian): Creative strategy remains essential because it provides valuable signals for targeting and engages audiences effectively. In this advanced contextual world, good creative in the proper ad format that you can test and learn from is paramount. It comes back to that feedback loop. We can use that as another signal in this equation to develop and refine the right set of audiences for your targeting needs. Alex (Yieldmo): Creative and ad formats are powerful signals for understanding audience engagement. At Yieldmo, we collect interaction data every 200 milliseconds, such as scrolling behavior or time spent on an ad. This data fills the gap between clicks and video completions, helping us build models that predict downstream actions. Tailoring creative to specific audience groups has always been one of the best ways to improve performance, and it remains essential in this new era of contextual advertising. Throughout my career, I learned that designing or tailoring your creative to different audience groups is one of the best ways to improve performance. We ran many lift studies with analysis to understand how you can tailor creative customized for individual audiences. That capability and the ability to do that on an identity basis is. Our recommendations for actionable marketing strategies Do you have recommendations for marketers building out their yearly strategies or a campaign strategy? Jason (Experian): My recommendation for marketers building out their yearly strategies is to be proactive and start testing and learning these new solutions now. I mentioned addressability and being in the right place at the right time. That’s easier in today’s third-party cookie world. But as traditional identity is further constricted, you will have these first-party solutions that will not be at scale, so you’re less likely to find your user at the scale you want. It would be best if you thought about how to reach that user at the right place at the right time. They may not be seen from an identity basis. They might not be at the right place at the right time when you were delivering or trying to deliver an ad. But you increase your chance of reaching them by building these advanced contextual targeting audiences using this privacy-safe seed ‘opted-in’ user set; this is a way to cast that wider net and achieve targeted scale. Alex (Yieldmo): Build your seed lists, test your formats with different audiences, and understand what’s resonating with whom. Take advantage of some of the pretty remarkable advances in machine learning that are allowing us, really, for the first time to fully uncork the potential and the opportunity with contextual in a way that we’ve never done before. Contact us About our experts Jason Andersen Senior Director, Strategic Initiatives and Partner Solutions, Experian Jason Andersen heads Strategic Initiatives and Partner Enablement for Experian Marketing Services. He focuses on addressability and activation in digital marketing and working with partners to solve signal loss. Jason has worked in digital advertising for 15+ years, spanning roles from operations and product to strategy and partnerships. Alex Johnston Principal Product Manager, Yieldmo Alex Johnston is the Principal Product Manager at Yieldmo, overseeing the Machine Learning and Optimization products. Before joining Yieldmo, Alex spent 13 years at Google, where he led the Reach & Audience Planning and Measurement products, overseeing a 10X increase in revenue. During his time, he launched numerous ad products, including YouTube’s Google Preferred offering. To learn more about Yieldmo, visit www.yieldmo.com. About Yieldmo Yieldmo is an advertising platform that fuses media and creative to meet audiences in the moments that matter. Using proprietary data and AI, Yieldmo uses advanced targeting to deliver context-aware creative when and where it’s most effective, all while respecting user privacy. The result: ads that belong on inventory brands trust. For more information, please visit www.yieldmo.com. Contextual advertising FAQs What is contextual advertising, and how does it work? Contextual advertising works by targeting audiences based on the content they’re engaging with, rather than relying on personal identifiers or traditional tracking methods. Yieldmo's platform uses advanced contextual signals and machine learning to deliver relevant ads in privacy-safe ways. How does contextual advertising address signal loss? Contextual advertising addresses signal loss by focusing on environmental and content-based signals instead of relying on thir-dparty cookies or other traditional identifiers. Experian’s identity solutions complement this approach by enabling marketers to connect with audiences in a compliant and scalable way. Why is creative important in contextual advertising? Creative is important in contextual advertising because it engages audiences and provides valuable signals for targeting. Yieldmo’s platform collects interaction data, such as scrolling and time spent on ads, to refine campaigns and improve performance. How can marketers reach non-addressable audiences? Marketers can reach non-addressable audience through advanced contextual targeting, which uses known data, like seed audiences, to identify patterns and extend reach. Experian’s identity solutions and contextual data from, Audigent, a part of Experian, help marketers connect with these audiences in privacy-safe and effective ways. Latest posts

In 2022, Google began changing the availability of the information available in User-Agent strings across their Chromium browsers. The change is to use the set of HTTP request header fields called Client Hints. Through this process, a server can request, and if approved by the client, receive information that would have been previously freely available in the User-Agent string. This change is likely to have an impact on publishers across the open web that may use User-Agent information today. To explain what this change means, how it will impact the AdTech industry, and what you can do to prepare, we spoke with Nate West, our Director of Product. What is the difference between User-Agents and Client Hints? A User-Agent (UA) is a string, or line of text, that identifies information about a web server’s browser and operating system. For example, it can indicate if a device is on Safari on a Mac or Chrome on Windows. Here is an example UA string from a Mac laptop running Chrome: To limit the passive fingerprinting of users, Google is reducing components of the UA strings in their Chromium browsers and introducing Client Hints. When there is a trusted relationship between first-party domain owners and third-party servers, Client Hints can be used to share the same data. This transition began in early 2022 with bigger expected changes beginning in February 2023. You can see in the above example, Chrome/109.0.0.0, where browser version information is already no longer available from the UA string on this desktop Chrome browser. How can you use User-Agent device attributes today? UA string information can be used for a variety of reasons. It is a component in web servers that has been available for decades. In the AdTech space, it can be used in various ad targeting use cases. It can be used by publishers to better understand their audience. The shift to limit access and information shared is to prevent nefarious usage of the data. What are the benefits of Client Hints? By using Client Hints, a domain owner, or publisher, can manage access to data activity that occurs on their web properties. Having that control may be advantageous. The format of the information shared is also cleaner than parsing a string from User-Agents. Although, given that Client Hints are not the norm across all browsers, a long-term solution may be needed to manage UA strings and Client Hints. An advantage of capturing and sharing Client Hint information is to be prepared and understand if there is any impact to your systems and processes. This will help with the currently planned transition by Google, but also should the full UA string become further restricted. Who will be impacted by this change? Publishers across the open web should lean in to understand this change and any potential impact to them. The programmatic ecosystem supporting real-time bidding (RTB) needs to continue pushing for adoption of OpenRTB 2.6, which supports the passing of client hint information in place of data from UA strings. What is Google’s timeline for implementing Client Hints? Source: Google Do businesses have to implement Client Hints? What happens if they don’t? Not capturing and sharing with trusted partners can impact capabilities in place today. Given Chromium browsers account for a sizable portion of web traffic, the impact will vary for each publisher and tech company in the ecosystem. I would assess how UA strings are in use today, where you may have security concerns or not, and look to get more information on how to maintain data sharing with trusted partners. We can help you adopt Client Hints Reach out to our Customer Success team at tapadcustomersuccess@experian.com to explore the best options to handle the User-Agent changes and implement Client Hints. As leaders in the AdTech space, we’re here to help you successfully make this transition. Together we can review the options available to put you and your team on the best path forward. Get in touch About our expert Nate West, Director of Product Nate West joined Experian in 2022 as the Director of Product for our identity graph. Nate focuses on making sure our partners maintain and grow identity resolution solutions today in an ever-changing future state. He has over a decade of experience working for media organizations and AdTech platforms. Latest posts

Up next in our Ask the Expert series, Ben Rothke, Senior Information Security Manager, reviews two certifications that should be part of your information security strategy: Service Organization Control (SOC) 2 Type 2 and International Organization for Standardization (ISO) 27001. Tapad, a part of Experian, is 27001 and SOC 2 Type 2 compliant. Two information security certifications you can trust Seals from Good Housekeeping and Underwriters Laboratories give consumers confidence that they can trust the product that they’re buying. For IT solutions or service providers, what, or who can you turn to for that seal of approval? There are many equivalent third-party attestations you can use. But which should you trust? The International Organization for Standardization (ISO) 27001 The American Institute of Certified Public Accountants (AICPA) System and Organization Controls (SOC) International Organization for Standardization (ISO) 27001 is an international standard for information security from the ISO. ISO 27001 is globally acknowledged and sets requirements for controls, maintenance, and certification of an information security management system (ISMS). This international standard provides organizations with a framework to identify, manage and reduce risks related to the security of information System and Organization Controls (SOC) The SOC, as defined by the AICPA, is a set of audit reports. SOC reports, like 27001 certificates, are used by service organizations to give their customers the confidence they have adequate information security controls in place to protect the data that they handle. SOC 2 is an assessment of controls at a service organization regarding security, availability, processing integrity, confidentiality, and privacy. The purpose of the report is to provide extensive information and assurance to a broad range of users about the controls at a service organization that are relevant to the security, availability, and processing integrity of the systems that process user data, as well as the confidentiality and privacy of the information processed by these systems. Why ISO 27001 and SOC 2 are important The value of these third-party attestations is two-fold: Organizations can show they have passed an independent external audit Third-party attestations save organizations the time of having to do their own audits In addition to 27001 and SOC 2 Type 2 compliance, we are also certified with ISO 27017 and 27018, which are add-ons to 27001 that are specific to cloud computing. We take the security and privacy of our customers’ data as seriously as they do. Every cloud service provider (CSP) has a responsibility matrix that details what security and privacy tasks they are responsible for and which ones the customer is responsible for. Any cloud customer that needs to be made aware of what their security tasks are is putting themselves at risk. So, when you want to engage a CSP, ask them for their attestations. They worked hard for them and will be proud to share their compliance. We’re powered by decades of setting standards in marketing services At Experian, we’re a privacy-first business. We’re highly focused on respecting people, their data, and their privacy. We continue to show our dedication to information security by completing these security audits every year. The constant changes to data compliance regulations can be challenging to navigate, but you don’t have to do it alone. Contact us today. We will be your guide so you can ethically and confidently reach your customers. Contact us today Contact us today About our expert Ben Rothke, Senior Information Security Manager Ben Rothke, CISSP, CISA, is a Senior Information Security Manager at Tapad, a part of Experian. He has over 25 years of industry experience in information systems security and privacy. His areas of expertise are in risk management and mitigation, security and privacy regulatory issues, cryptography, and security policy development. Ben is the author of Computer Security – 20 Things Every Employee Should Know (McGraw-Hill), and writes security and privacy book reviews for the RSA Conference Blog and Security Management magazine. Latest posts