Retail & Distribution

What Is a Retail Media Network?

A retail media network (RMN) is an advertising platform owned and operated by a retailer that allows brands to purchase ad placements on the retailer's digital properties, physical stores, or partner channels.

· 15 min read

Retail media networks (RMNs) have become a core, non-optional part of the CPG playbook, but they must be managed as one component of a broader brand and trade strategy—not as the strategy.

Key takeaways for mid-market CPG brands:

  1. RMNs are now where trade, media, and shopper marketing converge.
  • Platforms like Amazon Ads, Walmart Connect, Target Roundel, Kroger Precision Marketing, and Albertsons Media Collective monetize the point of purchase with high-margin ad inventory.
  • Commerce intermediaries (Instacart, DoorDash) add cross-retailer reach and delivery occasions to the mix.
  1. Budgets are shifting from trade to retail media, not appearing out of thin air.
  • What used to be endcaps, circulars, TPRs, and demos is increasingly being relabeled and resold as “media.”
  • This creates internal tension: every dollar pushed into RMNs is a dollar not going into other retail activation or long-term brand building.
  1. Attribution is both the superpower and the trap.
  • Closed-loop measurement (impressions → clicks → orders) makes RMNs look extremely efficient.
  • But they often capture credit for demand created elsewhere (brand, PR, social, sampling, community), which can lead to over-investment in what’s easy to measure vs. what’s most impactful.
  1. Amazon is the default starting point—but it’s engineered to maximize your spend.
  • Treat Amazon PPC like a performance channel that requires expertise, not a set-and-forget toggle.
  • For brands in the ~$5M–$20M range, hiring a specialist or agency is usually cheaper than the margin lost through unmanaged campaigns.
  1. Spend where you actually have distribution.
  • Prioritize RMNs tied to retailers where you’re on shelf or meaningfully available online.
  • Avoid scattering small budgets across every network just because the inventory exists.
  1. Don’t ignore non-traditional “retail media” like Faire.
  • For indie and specialty retail distribution, Faire’s paid placements and boosts function similarly to RMNs for wholesale buyers.
  1. Balance short-term sales capture with long-term brand building.
  • Sales teams will naturally favor RMNs because they show immediate, defensible ROAS.
  • Leadership needs to protect budget for brand equity and awareness—so retail media captures demand rather than trying (and failing) to create it alone.
  1. The category will keep growing—and retailer pressure will intensify.
  • With global retail media projected to exceed $300B by 2030, retailers will push harder for co-op, JBP-linked, and always-on media commitments.
  • Your job is to define a ceiling that preserves margin and supports brand-building work outside RMNs.

Practical approach for a mid-market CPG brand:

  • Phase 1: Foundation
  • Optimize Amazon (or your primary eCom retailer) with expert management.
  • Align RMN spend with current distribution and key retail partners.
  • Phase 2: Expansion
  • Layer in off-site and in-store media selectively where you have strong retail relationships and clear incrementality hypotheses.
  • Use intermediaries like Instacart/DoorDash if they match your usage occasions.
  • Phase 3: Portfolio balance
  • Set explicit guardrails: e.g., retail media capped at X% of total marketing + trade.
  • Protect a dedicated share of budget for brand equity and awareness programs (content, social, PR, community, experiential, sampling).

MorningAI’s role in this ecosystem is to strengthen the brand-side inputs—equity, awareness, and creative effectiveness—so that every retail media dollar you do spend works harder instead of simply bidding more for the same shopper.

Frequently Asked Questions About Retail Media Network

Traditional trade spending covers in-store promotions like end-cap displays, temporary price reductions, circular features, and co-op advertising. Retail media is the digital extension of this relationship, covering sponsored search ads, display advertising, and video placements on the retailer's digital properties. In practice, most CPG brands fund retail media from their existing trade budgets. The key difference is that retail media offers closed-loop measurement (connecting ad impressions directly to purchase transactions), while traditional trade promotions are harder to attribute precisely.
There is no universal benchmark, but CPG brands currently allocate an average of 35% of their advertising budgets to retail media, with some projections suggesting this will reach 50%. For mid-market brands, the right amount depends on where you have distribution, which platforms your consumers use, and whether you have the expertise (in-house or through an agency) to manage campaigns profitably. Starting with a manageable Amazon PPC budget managed by a specialist is a better approach than spreading a large budget across multiple platforms without dedicated expertise.
If you sell on Amazon, you almost certainly need to invest in Amazon advertising to maintain visibility in search results. For other retailers, the decision depends on whether the retailer operates a media network and whether your budget is large enough to make a meaningful impact on that platform. Focus your retail media dollars where you have distribution and where your target consumers are shopping.
Amazon controls nearly 80% of the U.S. retail media market because it was the first major retailer to build a sophisticated self-serve advertising platform, and because its marketplace generates massive purchase intent data. When someone searches on Amazon, they're typically ready to buy, which makes advertising on the platform extremely effective for conversion. This head start, combined with the sheer volume of transactions flowing through the marketplace, has made Amazon Ads the default starting point for CPG retail media investment.

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