The Programmatic Warning for Retail Media
Retail Media Networks (RMNs) are rapidly expanding, becoming an essential channel for brands, retailers, and agencies. However, the growth journey comes with challenges already faced by programmatic advertising. Programmatic’s experience with complexity, opacity, and measurement challenges signals warning signs that retail media must address to avoid similar setbacks.
Don’t Repeat Key Mistakes
One major programmatic issue was fragmentation and lack of unified standards, leading to inefficient buying and inconsistent performance. Retail media must prioritize simplifying operations and establishing clear industry standards to reduce complexity. Measurement in programmatic often relied on surface-level metrics without true incrementality or SKU-level insights. Retail media should adopt multi-dimensional measurement frameworks that assess impact accurately and provide actionable data for advertisers.
Leverage Retail Media’s Strength: Data & Identity
The defining advantage of retail media is its access to rich first-party data. Harnessing this data with robust identity strategies, including universal IDs and off-site targeting, can unlock new scale opportunities beyond on-site efforts. Brands and retailers need to capitalize on this foundation while maintaining privacy compliance to personalize campaigns and reach relevant consumers effectively.
Demand Transparency: Ask the Right Questions
Transparency gaps in programmatic often bred distrust. Retail media stakeholders must conduct thorough due diligence by asking detailed questions about inventory sources, data usage, measurement methods, and costs. An open approach to transparency will build confidence among buyers and foster a healthier, more sustainable retail media ecosystem.
By learning from programmatic’s pitfalls in standards, measurement, data use, and transparency, retail media can position itself for long-term success. Addressing these areas upfront will help the industry avoid repeating past mistakes and fully realize its potential.
