What is retail media?

Ads sold by retailers on their own websites and apps, measured against the retailer’s own sales data.

Retail media networks let brands buy ads inside a retailer’s own website and app, most often sponsored spots in the retailer’s search results. Most large US retailers now run one. What they offer that other channels can’t is a closed loop: the retailer can match ad exposure to its own sales data, including loyalty members who buy in person.

That makes retail media look precise, and it is precise about one retailer. Like every platform, it still credits itself. In a real Arcus market report for a skincare brand moving into retail, the brands studied bought retail media for position: rank in the retailer’s search results, and a sales number that lands in front of the retail buyer before the next review. One was quoted saying it would accept a lower ROAS on newer networks. The report’s advice was to judge retail media by search rank and new-to-brand buyers, and to fund it from the trade budget.

Why it matters

It’s often the closest a brand gets to seeing ads tied to retail sales. It’s also measured by the company selling the ads.

An example

Example (made-up numbers): a retailer reports $40,000 in attributed sales from $10,000 of sponsored search, a ROAS of 4. Part of that came from shoppers already searching your brand on the retailer’s site. The more useful numbers are how often you ranked near the top for your category and how many buyers were new to the brand.

Where it misleads

Comparing retail media ROAS with social ROAS as if they were the same measure. Each network counts with its own rules and data, and both may count the same buyer.

How Arcus handles it

We connect retail media reports to the same place as your own sell-through data and your other channels’ reports, flag overlaps, and help you set goals that match why you’re buying it.

More in our guide: Does retail eat online sales? What five brands that moved into retail show