One thing is for sure: the future of retail media—and retail media networks—looks promising. But is it truly evolving?
In 2022, digital retail media advertising spending worldwide was estimated at $114.4 billion. By 2028, this figure is projected to exceed $176 billion (Statista, 2023). Brands are pouring budgets into retailer-owned ad networks, drawn by the promise of first-party data and closed-loop measurement.
Yet, while retail media is positioned as a performance-driven channel, much of its buying process remains outdated. Despite the automation and real-time optimization that have reshaped digital advertising, many RMNs (Retail Media Networks) still rely on direct insertion orders (IOs), manual inventory booking, and static budget allocation.
This is where programmatic comes in—not just as an efficiency tool but as a necessary evolution. It enables real-time decision-making, dynamic budget allocation, and scalable data activation—capabilities that retail media, in its current form, often lacks. However, integrating programmatic into retail media is not as simple as flipping a switch. It requires a deep understanding of RMN-specific constraints, retailer data policies, and walled-garden limitations.
The question is no longer whether retail media will integrate programmatic but whether brands and agencies have the right strategy—and the right partners—to execute it effectively.
Despite its potential, retail media today operates under constraints that limit flexibility. Brands often negotiate placements in advance, lock in spend over fixed periods, and have little room to adjust campaigns once they go live.
This results in three key inefficiencies in retail media advertising:
Programmatic addresses these inefficiencies by automating media buying and optimizing spend in real time. Instead of pre-buying placements and hoping for results, advertisers can dynamically adjust bids, shifting budgets toward high-performing placements and audiences.
Amazon DSP has led this shift within Amazon’s ecosystem, allowing advertisers to programmatically bid on Amazon-owned inventory. Other retailers—including Walmart, Target, and Kroger—have developed their own programmatic solutions, primarily through partnerships with The Trade Desk and other DSPs. However, these platforms operate independently, meaning cross-retailer strategies still require careful planning.
To truly succeed in programmatic retail media, agencies and brands must go beyond simply activating a DSP. They need a deep understanding of each retailer’s auction dynamics, measurement limitations, and data-sharing policies.
Retail media’s greatest strength is its access to exclusive first-party shopper data—actual purchase behavior, intent signals, and loyalty insights. But access alone is not enough; brands must apply it strategically while adhering to each retailer’s specific rules.
Most retail media campaigns still rely on broad audience segments rather than real-time targeting strategies. A programmatic approach offers three key advantages:
However, data portability remains a major challenge. Some RMNs restrict the use of their first-party data to their own ecosystem, making it difficult to build unified, cross-platform campaigns. Amazon and Walmart, for example, enforce strict limitations on how advertisers can use audience data beyond their platforms.
Agencies that understand these nuances and tailor their programmatic approach accordingly will maximize performance—while others may encounter unexpected roadblocks.
Many RMNs still rely on surface-level ad metrics—impressions, click-through rates (CTR), and basic engagement data. While these indicators provide a baseline view of campaign performance, they fail to measure true business impact.
Programmatic allows advertisers to move beyond vanity metrics by enabling:
Brands that still rely solely on retailer-provided dashboards risk making suboptimal budget decisions. A programmatic-first measurement approach ensures that retail media investments are evaluated based on actual business outcomes, not just engagement metrics.
Integrating programmatic into retail media requires more than just DSP access—it demands a strategic shift in execution.
Yet, many agencies still lack the in-house expertise to execute these strategies effectively. Programmatic retail media is not plug-and-play—it requires a deep understanding of bid strategies, auction dynamics, and cross-retailer measurement frameworks.
Retail media is no longer optional - it’s the backbone of modern digital advertising. But without programmatic, you’re spending more and achieving less.
The next phase of retail media will be shaped by those who can scale their efforts effectively, apply retailer data strategically, and measure performance accurately. Agencies and brands that embrace programmatic now will define the future of retail media. Those that don’t risk spending more while understanding less.
For brands making this shift, success isn’t just about technology—it’s about partnering with experts who can execute it properly.
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