Retail media didn’t just sneak in through the back door—it kicked it wide open. One day, marketers were casually talking about “emerging revenue streams,” and the next, retail media had become a billion-dollar juggernaut.
But let’s be honest for a second: How did this shift happen so fast? Why is every major retailer suddenly talking about ad networks like they’re launching the next Netflix? And most importantly, why should you, as a marketer, care?
Here’s the thing: retail media isn’t just another digital channel. It’s where data, dollars, and decision-making collide. And while most people focus on the ads, the real magic? It’s hidden in the incentives—promotions, loyalty programs, and all those little nudges that make a shopper say “Why not?”
Let’s unpack why retail media matters—and how promotions and loyalty just might be its not-so-secret power source.
Imagine you’re a retailer grinding out a living on a 5% margin. Every dollar is a battle. Now imagine making 70% margins just by letting brands advertise on your own platforms—no new stores, no new products, just better use of what you already have: your audience.
Sounds too good to be true? It’s not.
Let’s run some simple numbers. A $1B retailer pulling in 5% net income is looking at $50 million. Now tack on $10 million in retail media revenue, at an 80% margin. That’s $8 million in clean, extra profit. Just like that, you’ve bumped total profit by 16%, without selling a single extra unit of deodorant.
This is why retail media has become the industry’s darling. It’s high-margin, high-impact, and entirely within a retailer’s control. And brands love it too—because they get to reach customers at the exact moment they’re deciding what to buy.
If you’re thinking this is just digital ads dressed up in retail branding—well, kinda. But also not really.
Retail media is advertising that lives inside a retailer’s ecosystem—on their website, app, in-store screens, or loyalty emails. Think: sponsored search results on Target.com, banner ads in the Uber Eats app, or brand-funded promos in your Walgreens account.
And here’s what makes it different: it doesn’t feel like advertising. It feels like shopping.
There are four key players in the retail media orchestra:
It’s like a feedback loop powered by purchase intent—and honestly, it’s kind of genius.
We’ve all seen what’s happening out there. Privacy rules are tightening. Cookies are crumbling. Social media ads are... well, not what they used to be.
Retailers are sitting on a goldmine of first-party data—purchase history, preferences, loyalty behavior. They know what people actually do, not just what they say they like.
And brands? They’re desperate for signal in the noise. So when a retailer offers access to real shoppers right at the point of purchase, plus the ability to measure conversion in real time, that’s not just appealing. That’s irresistible.
And it’s not just grocery anymore. Retail media is showing up in rideshare apps (hello, Uber), online grocers (Flink), and even beauty brands like Sephora.
But here’s where it gets even more interesting…
Most retail media conversations start with impressions and CPMs. But you know what actually makes someone buy a product?
A discount. A deal. A nudge.
In fact, 74% of shoppers say they discover new products through promotions and coupons. Social media ads? Just 36%.
That stat alone flips the narrative. Because when retail media is paired with brand-funded promotions, suddenly the ad isn’t just visible. It’s valuable.
Let me put it this way: you can show me a dozen ads for almond butter. But offer me 15% off the fancy organic brand I’ve been eyeing? Sold.
Here’s the behind-the-scenes playbook:
Better yet, promotions give brand partners actual ROI. They’re not just guessing whether a display ad worked—they see the sales spike directly tied to their spend.
And when brands see returns, they come back. With bigger budgets.
Let’s talk loyalty programs. Not the dusty old punch cards or generic “10% off your next order” deals. We’re talking modern loyalty—data-driven, digital, and deeply personal.
Loyalty programs do two crucial things for retail media:
That’s how you get campaigns that don’t just feel timely—they are timely.
And when you add gamified incentives, like points for sharing data or buying specific brands? Now you’re really cooking.
Absolutely. The relationship goes both ways.
Retail media networks help fund richer loyalty programs, since the rewards are often brand-paid. That means retailers can offer more, without eating into their own margins.
Also, those exclusive loyalty promos? They make members feel special. They make customers stick around. And that, friends, is the difference between one-time buyers and lifelong fans.
You want proof? Let’s look at a few brands turning retail media + incentives into something powerful.
This isn’t theory. It’s the new playbook.
Retail media isn’t slowing down. In fact, it’s expected to account for a massive share of digital ad spend in the next few years.
But here’s the twist: It’s not just about the ad real estate. It’s about the relationship.
When you pair smart targeting with real incentives—discounts, points, exclusive access—you’re not just grabbing attention. You’re earning trust.
And that? That’s the real long game.
So next time you’re planning a retail media campaign, ask yourself:
Where’s the value for the shopper? Where’s the reward?
Because honestly, attention’s great. But engagement—the kind that drives loyalty, repeat purchases, and measurable ROI—that’s what makes retail media not just work, but win.