Retail media networks: definition, development, and differentiation

Abstract

A retail media network (RMN) is an advertising driven business model that leverages first party data and closed loop reporting to sell enhanced opportunities to market products to consumers through online and offline retailer-owned platforms. Growth of this new phenomenon is robust as retailers increasingly recognize the benefits of additional revenue streams, higher margins, increased omnichannel sales, and enhanced consumer engagement. Extant literature is limited in this domain thus providing an opportunity to define RMNs, trace the evolutionary origins of the approach, and identify the differentiators that drive performance results. This research leverages exploratory qualitative methodology to develop a grounded theory based on the experiences of industry professionals. Essential capabilities emerged from the data and helped conceptualize an overall value stream framework. Results suggest the most successful RMNs will efficiently and effectively manage buyer–seller relationship inversion, first party data access, closed loop reporting validity, personalization and privacy balance, and trust. These strategic insights have meaningful implications for retailing theory, practice, and policy.