How programmatic advertising makes retail media smarter, faster, and more effective

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The future of retail media : is it really evolving?

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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Yet, while retail media is positioned as a performance-driven channel, much of its buying process remains outdated.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.

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Is static ad execution retail media's biggest challenge?

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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:

• Limited real-time optimization – Budgets are often pre-allocated, preventing underperforming placements from being adjusted dynamically.
• Siloed measurement – Each retailer operates within its own reporting framework, making it difficult to compare performance across multiple RMNs.
• Fragmented execution – Every RMN has its own platform and policies, forcing advertisers to manage multiple dashboards and creating operational challenges.

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.

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Using retailer first-party data effectively with programmatic media

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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:

• More precise audience refinement – Instead of predefined audience groups, advertisers can refine targeting based on real-time shopping behavior, intent signals, and past purchase history.
• Cross-platform activation – Some RMNs allow advertisers to retarget audiences outside the retailer’s platform, extending reach across CTV, social, and open web inventory. However, data-sharing rules vary by retailer.
• Adaptive messaging – Programmatic enables dynamic creative optimization (DCO), adjusting ad creatives based on a shopper’s stage in the buying journey.

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.

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Beyond clicks: how programmatic advertising improves retail media measurement—and media buying

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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:

• Multi-touch attribution – Instead of last-click attribution, advertisers can analyze the full customer journey across multiple touchpoints.
• Incrementality testing – Controlled experiments (exposed vs. non-exposed groups) help brands determine whether campaigns drive new sales or merely influence existing purchase behavior.
• Cross-retailer standardization – Programmatic platforms consolidate data across multiple RMNs, enabling consistent performance benchmarking.

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.

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Should agencies rethink their approach to programmatic and retail media?

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Integrating programmatic into retail media requires more than just DSP access—it demands a strategic shift in execution.

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Best practices :

1. Audit current retail media investments – Identify which RMNs offer programmatic buying and which still rely on manual IOs.
2. Choose the right DSPs – Amazon DSP dominates within Amazon’s ecosystem, but brands seeking multi-retailer reach should explore The Trade Desk, DV360, and retailer-owned DSPs like Walmart Connect and Criteo.
3. Understand RMN-specific data policies – Some retailers allow broad audience expansion, while others restrict targeting to their own ecosystem.
4. Invest in creative personalization – Programmatic enables dynamic creative optimization (DCO), ensuring ad relevance for each shopper.
5. Shift to revenue-based measurement – Focus on incremental sales, ROAS, and lifetime customer value rather than click-based performance indicators.

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.

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The future of retail media is programmatic—but only for those who adapt

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Retail media is no longer optional - it’s the backbone of modern digital advertising. But without programmatic, you’re spending more and achieving less.

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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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