How retail media network partners can boost retailer performance

Retail media networks (RMNs) have become a cornerstone of modern retail advertising, with the market expected to grow from $21.1 billion in 2023 to $31.7 billion by 2028. This explosive growth is fueled by the rise of direct-to-consumer (DTC) brands, the demand for better analytics and the increasing importance of data-driven advertising. Major retailers like Walmart and Target are leading the charge, while new RMNs are constantly entering the market. In this competitive space, retailers face a crucial decision: Should they build their own network, buy an existing solution or partner with an established provider? Let’s examine each in turn: 1. The “build” approach. Building an RMN from scratch offers retailers complete control over their platform but requires significant time, money and resources. This approach is ideal for large retailers with the capital and infrastructure to support such a venture. Walmart, for example, has invested heavily in its RMN, with the brand reaching the $2 billion mark in RMN-sourced revenue. However, this level of success demands extensive resources, including a robust tech stack, a large sales team and the capacity to handle vast amounts of data. Retailers who choose to build their RMN must be prepared for a long-term commitment, with continuous investment in partnerships, building out a demand-side platform (DSP), integrating with data partners and orchestrating various advertising technologies. This requires a strong internal team capable of managing everything from tech development to supplier relationships. One of the biggest challenges with the build approach is speed to market. Competitors are constantly launching new networks, and retailers that build their own RMN may lag and be unable to compete with more agile players that have already established their presence. 2. The “buy” approach. This allows retailers to acquire an existing RMN tech stack, which provides them with an immediate, fully operational solution. This option appeals to companies that want the benefits of owning their own RMN, but don’t have the time or resources to build one from scratch. The acquisition process can be lengthy though, often taking 6 to 24 months to navigate legal, financial and operational hurdles. Additionally, integrating the newly acquired system with the retailer's existing technology and business model can be complex, requiring alignment across multiple departments. With the evolving landscape, the “buying” approach brings on its own set of potential risks. The upfront cost of an acquisition makes this approach most suitable for retailers with the capital to invest and the patience to navigate the acquisition process. Buying is an attractive though resource-heavy solution for those who want control and scalability without the long-term build-out. 3. The “partner” approach. Partnering with an established RMN platform provider offers a faster, more cost-effective solution. Retailers can immediately tap into existing technology, expertise and sales pipelines, often within as little as 30 days. First, it allows retailers to use the infrastructure and capabilities of an experienced provider, effectively expanding their operations without the heavy financial and time investment required to build or buy. a partner can offer access to advanced tech stacks, data aggregation tools, measurement systems, and a team that manages all critical operations. This makes it easier for retailers to focus on their core businesses while leaving the technical and operational complexities to their partner. The partnership approach also helps retailers overcome challenges like management changes and internal politics. Retailers can sidestep the often slow and contentious process of aligning internal teams around a new strategy. Instead, they can focus on generating revenue and gaining market share while their partner handles the operational details. Expanding reach, increasing revenue Partnering with an RMN platform is just part of the solution. Instead of building separate platforms for the midmarket, retailers should integrate their offerings into existing digital platforms already trusted by these businesses. This approach allows retailers to maintain control over brand guidelines and targeting while making it easy for smaller companies to participate. With the help of a DSP partner, these RMNs and retailers can significantly expand their offerings to midmarket companies, who very much want to invest in Retail Media, unlocking new revenue streams while often have the resources and attention to focus on major brands, they frequently overlook smaller and midsized brands due to resource limitations. This creates a missed opportunity for both sides. A large retail store the StackAdapt team spoke with recently has relationships with around 7,000 brands, but lacks the time and resources to engage many smaller players, actively, leaving potential revenue on the table. By integrating with a DSP partner like StackAdapt, this company’s RMN could bring even a portion of these smaller brands—say 2,000—into the network. Partners fill the gap by handling critical operations, such as demand generation, tech orchestration and scalable ad placements. Their expertise in managing relationships with midmarket and SMB brands means that RMNs can quickly expand their reach without investing heavily in additional internal resources. One of the biggest benefits of partnering is scalability. A good partner can grow alongside the retailer, offering flexible solutions that can be adjusted as the business expands. For example, StackAdapt is a partner that can scale with a retailer's needs, providing the technology, resources and expertise to drive both demand and an evergreen pipeline for immediate revenue growth. Partnering with a DSP provides a seamless way to integrate smaller and midmarket brands into the advertising ecosystem, improving an RMN’s overall offerings and unlocking new revenue opportunities critical for growth in today’s competitive market. About StackAdapt StackAdapt is a multichannel digital advertising platform that is leading the industry with machine learning and artificial intelligence at its core. Ad buyers plan, execute and manage data-driven digital advertising campaigns across all devices, inventory and publisher partners. Specializing in native, display, video, connected TV, audio, in-game and digital out-of-home advertising, StackAdapt is the No. 1 DSP and a Top 100 Software Product on G2, supporting marketers and advertisers globally.

How retail media network partners can boost retailer performance

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