Retail media networks (RMNs) are rapidly growing, with advertisers investing billions of dollars into these platforms each year to consumers across the funnel. As retail media matures beyond search to offsite and upper-funnel channels, the need for more precise campaign performance is becoming increasingly apparent. While retailers have expanded measurement capabilities, significant gaps persist in standardization and data sharing, creating challenges for brands looking to effectively measure, plan and optimize this spend.
The Inconsistency Problem
Each retailer has developed its own measurement methodologies, with no two RMNs measuring quite the same. The metrics and attribution models offered by one RMN can look very different from another’s, with the lack of standardization making direct comparisons nearly impossible. A highly successful campaign with Amazon may look underwhelming on Walmart, not because of a difference in performance but in how the performance is measured.
This inconsistency is a major headache for advertisers managing retail media campaigns across multiple retailers. Apples-to-apples comparisons are harder to make than they need to be. One retailer may report on return on ad spend (ROAS) using last-touch attribution, while another employs a multi-touch approach. Some RMNs only offer basic conversion tracking, while others provide detailed incrementality analysis.
These disparities force advertisers to either build their own measurement frameworks or rely on fragmented, platform-specific insights. Both of these can lead to inefficient or inconsistent decision-making.
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The Siloed Impact Problem
The second major challenge is that most RMNs are measuring impact within their walled gardens. If a brand runs a campaign through Walmart Connect, it can see how the investment drove Walmart sales, but it can’t see whether that same campaign led to purchases with Amazon, Target or Kroger, or how it interacted with media running across those RMNs.
This siloed analysis overlooks the reality of how consumers shop today. While a consumer may interact with a campaign for paper towels on their Walmart app, they are also likely to compare prices across the other major retailers they frequently shop at to see who is selling them for the cheapest amount. Shoppers engage with multiple retailers, both online and offline, before making some purchases, meaning that the true impact of advertising often extends beyond the walled gardens of a single RMN.
More brands are leveraging off-site advertising through RMNs today, running campaigns on channels like connected TV (CTV), social media and display networks. These placements influence consumers beyond the retailer’s owned environment. For example, a shopper might see an RMN-facilitated ad when watching their favorite YouTuber but complete the purchase the next time they go into the store rather than ordering online. If measurement remains walled inside each individual RMN’s data system, brands miss purchases like this and the full picture of their campaign’s effectiveness.
The Need for Holistic Measurement
A holistic view of performance requires a unified, cross-platform measurement approach. The current fragmentation is leading to inefficiencies in how advertising dollars are spent and difficulty proving return on investment (ROI). To solve this problem, advertisers need:
- Standardized metrics across RMNs: A common measurement framework is needed across different RMNs across the industry. The work the IAB has done in this area is foundational, but adoption across RMNs is needed to ensure comparability across metrics like incrementality and attribution models.
- Third-party validation: Independent measurement providers offer transparency into the true, unbiased impact of retail media investments, helping brands and retailers make data-driven decisions from a common fact base while removing conflicts of interest.
- Cross-retailer attribution: A more robust attribution model that recognizes the omnichannel shopper journey is needed to reflect how consumers’ purchasing decisions are made today. Including in-store and cross-platform conversions will better reflect real consumer behavior.
- Retailer collaboration: RMNs need to work together, sharing aggregated insights and aligning on best practices, to offer brands a more holistic picture of their ad spend’s impact.
The Consequences of Inaction
Retail media has great potential to rival traditional advertising channels both in terms of scale and influence. However, its long-term success is dependent on its solving these measurement challenges now. Without standardization, advertisers may slow their spending with RMNs, stunting the sector’s growth. In a tight financial environment where every marketing dollar’s impact must be accounted for, retail media can’t afford to be a black box.
Moving Toward a Measured Future
The path forward requires retailers, advertisers and independent measurement providers to work hand-in-hand together. Transparency and standardization are not threats to an individual RMN’s bottom line; rather, they are enablers of sustainable growth. Rising tides will lift all retail media boats. As retail media matures, networks that embrace better measurement practices will gain a competitive advantage, attracting greater trust and investment from advertisers.
For brands, the key is to demand better measurement and work with partners that can provide big-picture insights. Retail media is too valuable to be evaluated in a vacuum — its impact extends beyond individual retailers, and it’s time for measurement to evolve accordingly.
By addressing these gaps now, the industry can unlock the full potential of retail media, driving greater efficiency, accountability and performance for both advertisers and RMNs alike.
Jesse Leikin is the Co-founder and SVP of Product and Technology at Incremental, where he leads the product team. With focused technical experience in ecommerce, analytics and advertising technology, he has spent more than 15 years enabling digital business. Having led development of SDKs and APIs for Millennial Media, AOL, Flurry and Verizon, tens of thousands of developers and platforms have used his products to manage their advertising and analytics solutions.
