Monetizing Retail Media Networks: A Strategic Framework For Retailers

Forbes

09-07-2025

Charisma Glassman is Senior Partner & Global Head of Retail Advisory at Genpact, helping global brands transform the end-to-end value chain.
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I believe retailers are sitting on a goldmine of advertising potential. In today's landscape of shrinking retail margins, I've found that retail media networks (RMNs) offer a lucrative new revenue stream. What makes them so attractive is their profitability. While traditional retail operates on razor-thin margins, advertising sold through RMNs can enjoy operating margins well above 50%. It's clear why a growing number of retailers, from big-box chains to specialty e-commerce players, are racing to build their own media arms.
Yet tapping into this opportunity requires more than putting ads on a store shelf or website. The leaders in this space are thriving because they follow a strategic framework to monetize every available touchpoint. To help retailers of any size replicate such success, here's a framework with six key pillars of retail media monetization.
1. In-Store Digital Advertising
Retailers are increasingly using in-store digital signage to monetize physical aisles. Digital screens on endcaps, checkout lanes and even smart shopping carts are becoming high-value ad real estate. Leveraging loyalty program insights, retailers can serve targeted, context-aware ads promoting, for instance, a new cookie brand on a screen in the snacks aisle to shoppers who've bought similar treats.
In another application, a European grocery chain could roll out smart endcap screens synced with loyalty app data. When a known coffee lover walks by the coffee aisle, the screen displays a premium roast on promotion. In this example, the screens would not only drive incremental product sales but also offer a brand lift for advertisers. Integrating in-store media with online campaigns creates an omnichannel strategy that reinforces the message and drives conversions.
2. E-Commerce Sponsored Content
Retail websites and apps have become high-margin digital real estate. Sponsored product listings, featured brand carousels, homepage takeovers and targeted banner ads convert customer attention into revenue. These placements are modern-day endcaps, and brands are willing to pay premium rates for them.
These sorts of innovations might enable an apparel retailer to add a 'featured brands' carousel on its app's home screen, allowing labels to promote new collections or a national grocery chain to introduce sponsored search keywords. This second example would then enable brands to bid for top placement in product search results. With the right targeting and performance measurement, these platforms can attract repeat ad spend and significantly enhance revenue per visitor.
3. Programmatic And Off-Site Advertising
Once a retailer has monetized its own properties, the next frontier is programmatic advertising and off-site reach. Retailers have valuable first-party data on shopping habits, which can be leveraged to target consumers across the broader web. By integrating with demand-side platforms (DSPs), retailers can allow brands to use their data to place ads on external websites, apps, or even connected TV.
Some retailers partner with streaming platforms to target viewers using in-store purchase behavior. Others integrate with social media platforms to match shopper profiles with ad delivery and track downstream purchases. This closed-loop measurement is attractive to brands seeking more accountable ad spending.
4. First-Party Data Monetization
Data is the foundation of every retail media network. Purchase histories, browsing behavior and loyalty data are all marketing gold in a privacy-first world. Beyond powering ad targeting, retailers can directly monetize their data through insights, analytics and segmentation services.
Retailers can provide anonymized basket-level data to brand partners, helping them understand buying patterns and design better campaigns. Clean-room technologies allow this to be done securely and in compliance with privacy laws. Other options include selling audience segments for external targeting or offering trend insights to brand marketers. Retailers that shift from hoarding to productizing their data stand to unlock new revenue while strengthening vendor relationships.
5. Brand Partnerships And Joint Campaigns
Retailers can also act as marketing agencies for their brand partners. By co-developing cross-channel campaigns, they provide value beyond ad space. A beverage brand might collaborate on a back-to-school campaign, targeting likely buyers on social, offering in-app coupons, promoting in-store and delivering post-purchase rewards.
Joint campaigns work because the retailer controls multiple customer touchpoints and can provide performance analytics. Some retailers co-create content, such as how-to videos, recipe hubs and interactive tools, funded by brands. Others facilitate cross-industry partnerships, like bundling a fitness product with an entertainment offer. These strategic partnerships drive full-funnel impact and deepen vendor investment in the retail media platform.
6. Retail Media As A Service (RaaS)
Retailers with mature RMNs are starting to monetize their platforms externally. Retail media as a service allows them to license their technology, audience data and sales expertise to other retailers or partners.
Some are offering turnkey advertising platforms to smaller retailers, creating new revenue streams from tech licensing and ad revenue sharing. Others form alliances to offer pooled media inventory and cross-retailer targeting. These models turn a cost center into a profit center, scaling the impact of a retailer's media capabilities beyond its own walls.
A New Profit Engine For Retail
What began as an experiment for digital-first players is now a top strategic priority for retailers of all kinds. By following this six-pillar framework, from in-store screens to RaaS, retailers can transform customer interactions into sustainable, high-margin revenue streams.
In a world where brands seek accountability and precision, and retailers seek profitability, retail media sits at the intersection. Those who act, invest in the right talent and tech and deliver measurable value to brand partners will define the future of commerce. The retail media gold rush is on and with the right blueprint, even the smallest retailer can strike gold.
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