Publications
Publications
- August 2022
- HBS Case Collection
Retail Media Networks
By: Eva Ascarza, Ayelet Israeli and Celine Chammas
Abstract
In 2022, retail media was one of the fastest growing segments in digital advertising. A retail media network (RMN) allows a retailer to use its assets for advertising. Retailers set up an advertising business by allowing marketers to buy advertising space across their different channels, such as their website or mobile application as well as physical stores or other properties the retailer owns or partners with. The value proposition retailers offer advertisers is to potentially generate more effective advertising and to drive sales, by leveraging their exclusive data that includes customer behavior and transactions (both online and offline), allowing advertisers to close the loop from ad exposure to purchase across channels. This note provides an overview of retail media networks in 2022. First, it describes the role played by each key player—retailers, brands, and consumers—as well as the main drivers behind the dramatic growth of RMN in the last few years. Then, it describes the main challenges for retailers who aim to seize the RMN opportunity. Third, it positions the RMNs within the broader context of digital advertising, identifying key challenges and open questions in this industry.
Keywords
Advertisers; Advertising Media; Media And Broadcasting Industry; Retail; Retail Analytics; Retail Promotion; Retailing; Ecommerce; E-Commerce Strategy; E-commerce; Marketing Communication; Targeting; Targeted Advertising; Targeted Marketing; Advertising; Marketing; Marketing Communications; Marketing Strategy; Brands and Branding; Media; Marketing Channels; Retail Industry; Consumer Products Industry; Advertising Industry; United States
Citation
Ascarza, Eva, Ayelet Israeli, and Celine Chammas. "Retail Media Networks." Harvard Business School Background Note 523-029, August 2022.