Retailers can leverage their first-party data within retail media to reach shoppers at key moments in their shopping experience, which is largely omnichannel in today’s market. In addition, RMNs offer retailers another revenue stream as they work with their brand partners to deliver on shopper needs and expectations.

CPGs are able to connect with customers through highly targeted campaigns that differentiate their offerings in a crowded field. Because campaigns are based on actual purchase data, this form of digital advertising is more effective than traditional targeting considerations such as demographics. Brands can use RMNs to identify high-potential shoppers and lapsed customers, while also attracting audiences receptive to new product launches.

Because audience targeting through RMNs is based on purchases, brands and retailers are better equipped to drive measurable results.

Measurement is crucial in today’s environment, when companies face pressures to prove the value of their investments. By linking targeted digital advertising to in-person lift measurements, partners can close loops within ecosystems.

Transparency is important as brands and retailers consider and review RMNs. From Circana’s perspective, being open about the methodology behind determining incrementality and sharing commitments to industry standards underscores efforts to eliminate biases in campaigns.

As AI becomes more sophisticated, such tools can accelerate the effectiveness of RMNs. AI, including generative AI, is poised to enhance segmentation based on rich data sets that can be rapidly created and then optimized. These advancements may lead to automated media planning in the not-so-distant future.