Are Retailers Becoming The New Media Titans?

The retail industry is witnessing a seismic shift.

Once focused solely on selling products, major players in the retail space are now leveraging their greatest asset—customer data—to evolve into media companies.

It’s a bold move that challenges traditional advertising models, yet it remains largely underutilized by most retailers.

In a landscape where digital advertising is becoming more expensive and less effective due to saturation and data privacy challenges, this transformation represents an unparalleled opportunity for retailers to diversify revenue streams, enhance customer loyalty, and provide immense value to partner brands.

The Retail Media Revolution

Retailers today are uniquely positioned to offer something that traditional digital ad platforms like Google and Meta cannot: high-quality, first-party data and direct access to customers at the point of purchase.

This is particularly significant given the rising challenges in digital advertising:

1. Rising Costs: Advertising on platforms like Google and Meta has become prohibitively expensive, especially for smaller brands. Retail media networks offer a more cost-effective alternative for targeting high-intent customers.
2. Data Privacy Restrictions: With third-party cookies on the decline and stricter regulations around data usage, advertisers are looking for ways to access audiences through consented, first-party data. Retailers are sitting on a treasure trove of this data, collected through loyalty programs, app interactions, and purchase histories.
3. Demand for ROI Transparency: Retail media networks provide closed-loop measurement, allowing brands to track ad performance all the way to sales, unlike traditional ad platforms where attribution remains murky.

The Advantages of Retail Media

Retail media networks turn a retailer’s customer touchpoints—both online and in-store—into premium advertising real estate.

The benefits of this approach are numerous:

• Hyper-Targeted Ads: Retailers can deliver personalized ads to customers based on their shopping behavior, preferences, and demographics. This makes the ads far more relevant and effective.
• High-Intent Audience: Ads delivered on a retail platform target customers who are already in a buying mindset, significantly increasing conversion rates.
• Revenue Diversification: Retailers can earn high-margin revenue from ad placements, creating a buffer against fluctuations in product sales.
• Brand Loyalty: By serving personalized ads that feel helpful rather than intrusive, retailers can deepen their relationship with customers.

Retailers Leading the Charge

1) Walmart Connect

Walmart has transformed its digital properties into powerful advertising platforms through Walmart Connect.

By leveraging customer insights from billions of interactions annually, Walmart Connect offers:

• Sponsored product ads in search results.
• Display ads on Walmart’s website and app.
• In-store ads via digital screens.

This strategy has not only unlocked a significant new revenue stream but also allowed Walmart to help partner brands achieve measurable sales growth.

In 2023, Walmart Connect’s revenue grew by 30%, a testament to the power of retail media when executed at scale.

2) Landmark Group’s “Landmark Reach”

In the Middle East, Landmark Group has taken a similar approach with its Landmark Reach platform.

The retail and hospitality conglomerate uses its expertise in customer engagement to provide:

• Sponsored product ads on its platforms.
• Display ads on-site and in-app.
• Hyper-personalized ad campaigns for partner brands.

With millions of customers across its retail and hospitality brands, Landmark Reach is setting the benchmark for how regional retailers can tap into retail media.

3) Al Shaya Group's Alshaya Media Connect (AMC)

Alshaya Group, a leading international retail franchise operator, has unveiled Alshaya Media Connect (AMC)—its dedicated omnichannel retail media network. With over 4,000 stores and 125+ digital businesses across diverse categories like fashion, beauty, food, and home furnishings, Alshaya is leveraging its vast reach to revolutionize retail media advertising in the region.

Integrated with Aura, the Group’s loyalty program boasting 8.3 million members across Bahrain, Qatar, KSA, Kuwait, and UAE, AMC enables advertisers to tap into first-party data insights from Alshaya’s 70 franchise partners. The platform empowers brands to execute targeted campaigns at scale across onsite, offsite, and in-store touchpoints, creating seamless omnichannel experiences.

According to Francois Orhan , Director of Loyalty, Payment, Data & Analytics at Alshaya, AMC represents a cutting-edge opportunity for advertisers to connect with precise shopper segments, combining the power of customer insights with the Group’s extensive in-store and digital presence.

Why This is an Underdog Opportunity

Despite its potential, retail media remains underutilized by many retailers, particularly smaller chains and e-commerce brands.

Here’s why this opportunity is ripe for the taking:

1. It’s Still a Blue Ocean: While giants like Walmart dominate, the market is far from saturated. Mid-sized retailers can carve out significant opportunities in their niches.
2. First-Mover Advantage: Retailers who adopt this model early will attract partner brands before competition intensifies, securing better partnerships and higher ad revenue.
3. Authenticity Wins: Ads placed within a retailer’s ecosystem feel more organic than those on generic platforms, fostering greater trust with customers.

How Retailers Can Start Leveraging Retail Media

For those ready to embrace the challenge, here’s how to get started:

1. Audit Your Data: Retailers must first assess the quality and depth of their customer data. This includes purchase history, browsing behavior, and loyalty program metrics.
2. Invest in Infrastructure: Building an effective retail media network requires robust ad-serving platforms, data analytics tools, and a team capable of managing the ecosystem.
3. Start Small: Begin by offering limited ad placements to select partner brands. Use this phase to refine targeting, measure ROI, and gather feedback.
4. Educate Partner Brands: Clearly communicate the value of advertising within your ecosystem, emphasizing ROI transparency and audience relevance.
5. Maintain Customer Trust: Ensure that ads are relevant, non-intrusive, and enhance the customer experience rather than detracting from it.

Channel Selection for Retail Media Based on Industries

Different industries require tailored approaches to retail media:

• FMCG Brands: Prioritize sponsored product ads in search results and on in-store screens to capture customers at the point of decision-making.
• Luxury Brands: Focus on display ads in premium sections of the retailer’s app or website to align with brand positioning.
• Electronics: Leverage video ads or rich media formats on product pages to showcase features and drive engagement.
• Small E-Commerce Retailers: Use targeted email marketing campaigns to promote partner brands’ products directly to high-intent customers.

The Long-Term Implications

As retail media networks become more sophisticated, the lines between commerce and advertising will blur even further.

The success of early adopters like Walmart and Landmark Group has already proven that this model works. Retailers who fail to embrace this shift risk being left behind, losing not only potential ad revenue but also the chance to deepen their customer relationships through personalized experiences.

For retailers ready to make the leap, the opportunity is massive. Retail media isn’t just a trend—it’s the future. And for those willing to seize it, the rewards are endless.

Thanks for reading!

If this sparked some thoughts, challenged a few assumptions, or even ruffled a few feathers, I’d love to hear from you.

Your insights, questions, and feedback are invaluable in pushing this conversation forward.

Got ideas, a topic you’d like covered, or a perspective you want to share?

Drop me a line – I’m all ears.

If you found this piece insightful, don’t forget to like, comment, or share it with your network.

Every repost, share, and comment helps grow this community of bold, unfiltered thinkers.