Are Retail Media Networks Delivering the Desired Results?

Retail media networks are expanding beyond traditional retailers as more companies look for ways to turn their customer relationships into advertising opportunities. McDonald’s is the latest major brand to enter the space, launching a pilot media network that allows other brands to advertise across select digital touchpoints in its U.S. restaurants. The initiative highlights the growing appeal of retail media, but new research suggests that building a network is only part of the equation. Advertisers are continuing to put money into retail media networks (RMNs) and commerce media networks (CMNs). More than three-quarters of surveyed advertisers use RMNs, and 85% expect to increase their investment in these channels over the next year. With companies like McDonald’s exploring new advertising opportunities, competition for those budgets could become even stronger.

What Do Advertisers Want From Media Networks?

Despite growing interest, advertisers have several concerns that could affect where they spend their money. The study found that 36% have reduced, paused, or reconsidered investments because of costs compared with other channels. Another 32% cited challenges demonstrating return on investment (ROI) to company leadership. Audience quality and measurement limitations were also concerns, each cited by 30% of respondents. These findings point to a bigger issue for network operators: attracting advertisers is not enough. Brands need evidence that their campaigns are reaching the right people and generating meaningful results. Measurement is particularly important. Only 40% of respondents said they were confident in the incrementality measurement provided by their media network partners. Advertisers also want quicker campaign reporting, better visibility into sales growth and new customer acquisition, and more consistent performance metrics across networks. Without reliable reporting, marketers may struggle to determine whether a campaign is worth the investment.

Email Remains Important for Audience Activation

Email is another important piece of the retail media conversation. The survey found that 58% of advertisers use email to activate audiences through their RMN and CMN strategies, making it the most frequently used channel for this purpose. On-site display advertising and sponsored product placements followed at 46% each, while off-site social media ranked next at 43%. However, coordinating campaigns across multiple platforms remains a challenge. Advertisers want customers to have a consistent experience, regardless of where they encounter a brand's message.

The Takeaway for Marketers

Retail media networks offer companies a new way to connect advertisers with valuable audiences. However, as more businesses enter the market, delivering measurable results will be essential to standing out. For brands considering these opportunities, the priority should be finding partners that offer transparent reporting, effective audience targeting, and a connected customer experience. Growth creates opportunity, but demonstrating value is what can help turn initial interest into long-term investment.

Cate Bender, the author, is Project Coordinator of Marketing Keys