5 Myths About Retail Media – Busted!

Retail media has quickly become one of the fastest-growing segments in digital advertising, with the market projected to grow by 25% annually, reaching $100 billion by 2026​. However, despite its growth, several misconceptions persist about how retail media works and who can benefit from it. In this post, we’ll debunk five of the most common myths about retail media and show why it’s a powerful tool for advertisers across all industries, sizes, and verticals.

Debunking the Top 5 Misconceptions About Retail Media

Myth 1: Retail Media is Only for Endemic Advertisers

Busted: It’s often assumed that retail media is only suitable for brands that sell directly through retailers, like those on Amazon or Walmart. While these endemic brands certainly benefit, non-endemic advertisers—such as financial services, travel, or insurance companies—can also tap into the vast potential of retail media. Platforms like Amazon, which sees over 300 million visitors daily offer an excellent opportunity for any brand to gain visibility.

Non-endemic advertisers can strategically align their messaging with shopper behavior, delivering ads when consumers are actively researching or comparing products. This allows them to reach highly relevant audiences, even if their products aren’t sold directly on the platform. By utilizing retail media’s first-party data, non-endemic brands can position themselves in front of shoppers at critical moments, ensuring maximum impact.

Myth 2: Retail Media is Only for E-commerce Brands

Busted: There’s a common misconception that retail media only works for brands with a significant e-commerce presence. In reality, retail media can influence both online and in-store shopping behavior. Studies show that only 10-20% of shoppers regularly visit a retailer’s website, leaving up to 90% of consumers reachable via off-site and in-store retail media tactics​. By using first-party data, retailers can target consumers beyond their website, such as through programmatic ads or in-store promotions, reaching them wherever they are in their shopping journey.

This omnichannel approach is increasingly important as consumers engage with brands through multiple touchpoints—whether online, in-store, or on mobile apps. Retail media allows advertisers to bridge the gap between the physical and digital worlds, ensuring their message reaches customers regardless of where they shop.

Myth 3: Retail Media is Too Expensive for Small Brands

Busted: Many smaller brands shy away from retail media, believing it’s too costly to compete with larger advertisers. However, the retail media landscape is evolving rapidly, becoming more accessible and affordable for brands of all sizes. With the market expected to grow to $100 billion by 2026​, there are expanding opportunities for small businesses to get in on the action and make retail media a key part of their marketing strategy.

As the retail media ecosystem grows, new niche platforms are emerging that cater to specific industries or demographics. These smaller retail media networks offer brands targeted access to more relevant audiences, often at a lower cost. For example, while platforms like Amazon dominate the retail media space, brands can find niche opportunities on sites like Instacart, Kohls, or Wayfair, each offering access to unique consumer segments. These platforms allow smaller advertisers to tailor their campaigns more precisely and reach highly relevant audiences without the need for a massive budget.

Retail media’s scalability is one of its greatest strengths. Many platforms offer flexible bidding models, such as cost-per-thousand-impressions (CPM), that enable advertisers to bid for placements based on their budget, providing brands with the option to start small and increase spend as they see results. This flexibility allows smaller businesses to compete with larger players by carefully managing their campaigns and targeting the right audiences. With the continuous growth of retail media and new opportunities across diverse platforms, brands of all sizes can find success by leveraging these scalable solutions.

Myth 4: Retail Media Doesn’t Provide Robust Performance Metrics

Busted: Some advertisers shy away from retail media, believing it lacks the transparency and detailed performance metrics they’ve come to expect from channels like search or social. In fact, retail media networks (RMNs) provide extensive performance tracking capabilities. With the wealth of first-party data available, advertisers can gain valuable insights into consumer behavior, purchasing patterns, and ad performance​.

Retail media platforms often provide real-time data and reporting that allows brands to optimize their campaigns for better ROI. Advanced measurement tools track both upper-funnel metrics, like brand awareness, and lower-funnel outcomes, like conversions, offering a full picture of how ads are performing across the customer journey. This kind of granular data helps advertisers make informed decisions and improve their campaign effectiveness.

Myth 5: Retail Media is Only Good for Lower-Funnel Tactics

Busted: Another myth is that retail media only serves lower-funnel objectives, such as driving conversions and immediate sales. While retail media is undoubtedly effective for this purpose, it’s also a powerful tool for upper-funnel activities like brand awareness and consideration. 

By using first-party data, advertisers can reach new audiences who are in the early stages of the buying journey, not just those ready to make a purchase. This makes retail media a versatile tool that can support long-term brand growth, in addition to short-term sales objectives.

The Power of Retail Media for All Advertisers 

Retail media offers immense potential for advertisers across industries, not just for those selling directly through the retailer. As the retail media landscape evolves, more brands are recognizing the value it provides at every stage of the funnel, from brand awareness to conversions. With its scalable pricing models, robust data analytics, and omnichannel reach, retail media is a powerful tool for businesses of all sizes.

Interested in learning more about how Digilant can help you unlock the full potential of retail media? Our retail media solutions are designed to help advertisers connect with the right audiences, whether you’re a large enterprise or a small business. Get in touch to chat with one of our experts or explore our resources to see how we can help you optimize your campaigns and drive impactful results.