The Evolution from Onsite to Open Web
Why Retailers Seek Broader Reach
Retail media has traditionally centered on onsite placements—advertising displayed within the retailer’s own digital properties such as websites and apps. However, as these channels approach saturation and competition intensifies, retailers are expanding their advertising footprint beyond their platforms, aiming to capture audiences across the wider digital ecosystem. This offsite approach allows brands to connect with shoppers earlier in their journey and in diverse contexts, broadening reach and driving more comprehensive commerce outcomes.
Leveraging First-Party Data for Precision
At the core of this offsite expansion is first-party data collected by retailers. This valuable asset enables precision targeting when retail media ads move beyond the shelf. By applying insights from purchase history, browsing behavior, and customer preferences, retailers and brands can deliver personalized messages to relevant audiences throughout the open web, improving engagement and return on investment.
Programmatic: The Engine of Offsite Retail Media
Programmatic advertising is the technology that powers this offsite retail media transformation. It automates the buying and placement of ads in real-time auctions across multiple digital environments. This approach grants retailers the ability to extend their campaigns outside owned properties while maintaining control over audience targeting based on their rich first-party data. The result is a scalable, efficient channel that aligns message delivery with shopper intent beyond traditional commerce sites.
Industry Leaders Shaping the New Landscape
Several players are pioneering this shift by integrating retail media with programmatic capabilities. Yahoo, for example, has emerged as a key facilitator by partnering with retailers such as DoorDash, StockX, and Dollar General. These collaborations enable retailers to access wider audiences through Yahoo’s open web inventory while leveraging their own data assets for targeted advertising. Such partnerships exemplify how retail media networks are evolving into comprehensive commerce media ecosystems.
What This Means for Brands and Retailers
The movement towards offsite programmatic retail media signifies a broader strategic trend. For retailers, it opens opportunities to monetize their data and audience beyond their platforms, increasing advertising revenues. For brands, it offers diversified touchpoints with consumers earlier and across more channels, enhancing campaign effectiveness. Both parties benefit from data-driven targeting, improved measurement, and scalable media solutions. As retail media matures, understanding and adopting offsite programmatic strategies will be essential for competitive advantage in the digital commerce advertising space.
