Retail media networks (RMNs) are transforming digital advertising, offering brands direct access to consumers at the point of purchase. With third-party cookies phasing out, retailers are leveraging first-party data to deliver highly targeted and measurable ad campaigns.
The industry is expanding rapidly:
- Retail media ad spend is projected to reach $106 billion by 2027 (eMarketer).
- By 2025, RMNs will account for 25% of total digital ad spend (Boston Consulting Group).
- Brands using RMNs have reported a 30% increase in return on ad spend (ROAS) compared to traditional display advertising (McKinsey).
Despite this rapid growth, RMNs face challenges in programmatic execution, supply-side management, and data integration. Without a strong operational framework, inefficiencies can lead to lost revenue and missed opportunities.
Challenges in Retail Media Network Ad Operations
Retailers entering the advertising space must navigate the complexities of programmatic media buying. Key challenges include:
1. Managing Supply-Side Partners
Retailers must integrate multiple demand-side platforms (DSPs) and supply-side platforms (SSPs) to maximize inventory monetization. However:
- Forty percent of retailers struggle with fragmented programmatic technology stacks (Forrester).
- Without centralized management, inefficient ad placements can lead to revenue leakage.
2. Attribution and Measurement Complexities
Retail media combines brand awareness and direct conversions, requiring accurate measurement of campaign performance.
- Fifty-seven percent of advertisers cite attribution modeling as their biggest RMN challenge (IAB).
- Many RMNs still rely on last-click attribution, which underestimates the impact of upper-funnel tactics.
3. Data Integration and Personalization
Retailers have valuable first-party data but integrating it across platforms is a major hurdle.
- Only 35 percent of retailers have fully unified data across advertising, loyalty programs, and sales channels (Merkle).
- Brands that effectively use RMN data for personalized campaigns see a 20 percent lift in engagement (McKinsey).
To overcome these challenges and unlock full revenue potential, RMNs are increasingly turning to managed service providers (MSPs) for specialized expertise.
Partner with Paragon Digital Services to Optimize Your Retail Media Strategy
Paragon Digital Services is the industry’s only ISO/IEC triple-certified managed service provider, specializing in precision, compliance, and operational efficiency.
By partnering with Paragon, RMNs benefit from:
- Flawless campaign execution to ensure optimal ad placements and performance.
- Seamless data integration for improved targeting and audience segmentation.
- Advanced reporting and attribution to provide real-time insights and optimize strategies.
Retail media is evolving quickly, and the ability to scale efficiently will define future success. Contact Paragon Digital Services today to build a strong foundation for your RMN and maximize revenue opportunities.
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