What is Retail Media? How It Works & Why It Matters

Retail Media

What is retail media?

Short definition: Retail media is advertising that takes place on a retailer’s owned properties, such as websites, apps, or in-store digital displays, allowing brands to promote products directly to shoppers at the point of purchase through formats like sponsored product ads. Retail media enables brands to boost their visibility on the “digital shelf”, similar to an endcap or special in-aisle feature in a physical store.

What do retail media ads look like and where do they appear?

Retail media ads can be native ads or display ads. The native ads blend in seamlessly with the search results—they look like another product in the list—but have a small “sponsored” label at the bottom or top of the ad. The display ads allow for more impactful creative, blending branding messaging with dynamic, retail-specific features like real-time pricing.

Retail media ads can be shown on the home page, category page, search results page, or product detail page to reach consumers at various stages of their journey. Some retail media solutions also enable brands to retarget retailers’ audiences as they browse the open web.

What is the retail media ecosystem?

Just like in nature, where different entities must work together in order to maintain balance, the success of retail media requires the collaboration of its participants. The ecosystem includes:

Brands: Act as the demand side of the ecosystem. Examples include P&G, Levis, Honest Company, L ‘Oreal, Estee Lauder.

Retailers: Act as the supply side of the ecosystem. Examples could include retailers like Target, Best Buy, Shipt, Costco, and Ulta.

Agencies: Part two of the demand-side, as a proxy for their brand clients. Examples include Wavemaker, Publicis, Group M.

Consumers: Why it all matters. Consumers’ expectations for a personalized experience shape retail media’s technology and offerings. Both retailers and brands work together to ensure ads are relevant and the shopping experience is preserved.

What are the benefits of retail media?

Each player in the ecosystem enjoys different benefits from retail media:

Benefits of retail media for brands/agencies:

Benefits of retail media for retailers:

The Criteo Retail Media Platform

Our technology is purpose-built to enhance the partnership between retailers and brands to deliver more product sales and more value for all. If you’re a retailer looking to increase ad revenue or a brand that wants more product visibility and sales, our Retail Media Platform has all the tools you need to succeed.