Retail Media’s Big Problem: Are We Measuring Signal or Just Noise?

• Retail media networks use first-party data from a retailer, like Walmart, to create highly targeted ads that brands can use across different channels.
  
• First launched by Amazon in 2012, more than 200 retailers have since created their own networks, with retail media capturing nearly 20% of all digital ad spend.
  
• This rapid growth has created a disjointed experience for marketers because each network measures success using different metrics, making it difficult to compare performance and determine a true return on investment.
  
• To fix this, the industry needs to establish a shared identity framework for tracking consumers and a common set of measurement standards for all networks.

Retail Media’s Big Problem: Are We Measuring Signal or Just Noise?

As more consumers are shopping online, brands are looking for new and innovative ways to capture their attention. Since Amazon launched the first retail media network, an increasing number of major players are creating their own version, making it easier for medium and small brands to connect with their consumers across the digital landscape. And it’s working – in 2024, retail media captured nearly 20% of digital ad dollars.

But as we’ve seen time and time again, the rapid rise of new technology has created disparate solutions that harm the consumer experience and cause headaches for marketers and advertisers. 

Let’s discuss how we got to this disjointed experience, the impact it has on advertisers, and (the good news) how we can still fix it.   

What Is Retail Media? 

First things first – what do we mean when we say “Retail Media Networks”?

Consider a major player like Walmart. When you shop their website or app, make a purchase, respond to an email, or sign up for their loyalty program, they collect first-party data about you, your preferences, your purchase history, and more.

Walmart has compiled this first-party data into a media network to sell to brands for their digital marketing efforts. Where CPG marketers used to spend money on trade marketing – paying for premium spots on shelves or advertising in stores – they’re now paying to get highly-targeted, verified first-party data that can be used across multiple channels. 

In an age where data privacy and cookie crumbs are making it difficult to access and use high-quality third party data, many brands are turning to first-party data of retail media networks to secure their ROI. But is it working as intended? 

The Growth of Retail Media 

Amazon created the first online marketplace in 1995, and then became the first to monetize its first-party data in 2012. Since then, large retailers have followed Amazon’s lead – brands like Walmart, Target, Kroger, eBay, Etsy, Shopify, and 200+ more brands have created their own disparate retail media networks.

200 brand-new retail media networks in just over a decade. 

And marketers are really taking advantage of this highly-qualified data. 20% of ad spend was used on retail media networks in 2024, and this year, 65% of marketers plan to allocate even more. Over ⅕ of marketing’s ad spend is spent on these newer data networks – but is it worth it?

Move Fast, Standardize Later

With all of these disparate media networks, consistency has proven to be a challenge for marketers. The KPIs that are measured on Walmart Connect for example, might be wildly different from those on Target Roundel or Kroger Precision Marketing.

This lack of consistency makes it hard for marketers to accurately gauge ROI from one platform to the next. Campaigns that perform great on one media network might look poor on another, and the disparate nature of it all means marketers are spending extra time standardizing wildly different data into one dashboard to get the complete picture of a consumer.     

Time to Connect the Dots 

Luckily, all is not lost. Because this technology is still so new, we can implement solutions that will help connect the dots and make retail media networks optimize ROI instead of wasting it.

The first solution is to implement a shared identity framework that tracks a shopper’s journey across all touchpoints and networks. This shared identity framework would use a common identifier, like a hashed email address, and sit on top of all these different retail media networks. Now, you have a complete view of the customer – from all different stores and all different points of contact – that you can leverage in your outbound marketing.

Concurrently, RMN owners and marketers need to have a conversation about establishing a common “rulebook” for measurement. The IAB and MRC have taken the first step, with creating a “Retail Media Measurement Guidelines” document, but it needs input and enforcement from the entire industry.


Over the last decade or so, Retail Media Networks have exploded in popularity, but moving too fast may have created a disjointed experience for marketers trying to optimize their ad spend. With the right guidance, these media networks can become a real game-changer for brands who are looking to get more personalized, more relevant, and optimize their ROI.   

Frequently Asked Questions

What is a retail media network? A retail media network is a platform created by a retailer (that uses its first-party customer data—such as purchase history and preferences—to help brands deliver highly targeted and relevant ads to consumers.

Why is it difficult for marketers to use different retail media networks? Marketers face challenges because each retail media network uses different metrics and key performance indicators (KPIs) to measure campaign success. This lack of standardization makes it hard to compare the return on investment (ROI) across various platforms and get a complete view of a customer’s journey.

What is the proposed solution to this problem? First, implement a shared identity framework that tracks a customer’s journey across different networks using a common identifier. Second, establish a common set of measurement guidelines and “rulebook” for all retail media networks.