Retail Media Network Market Research Report: By Network Type (Closed Retail Media Networks, Open Retail Media Networks, Hybrid Retail Media Networks), By Data Collection Method (First-Party Data, Second-Party Data, Third-Party Data), By Deployment Model (On-Premise, Cloud-Based), By Vertical (Grocery, Apparel, Electronics, Home Improvement, Health and Beauty) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032.

Retail Media Network Market Overview

The Retail Media Network Market Size was estimated at 15.27 (USD Billion) in 2022. The Retail Media Network Industry is expected to grow from 17.47(USD Billion) in 2023 to 58.6 (USD Billion) by 2032. The Retail Media Network Market CAGR (growth rate) is expected to be around 14.4% during the forecast period (2024 - 2032).

Key Retail Media Network Market Trends Highlighted

The retail media network market is experiencing a surge in adoption, driven by key trends such as the rise of e-commerce, personalized advertising, and the growing need for retailers to diversify their revenue streams. The shift towards omnichannel shopping has accelerated the demand for targeted advertising solutions that can reach consumers across multiple touchpoints. Retailers are leveraging their vast customer data and insights to offer tailored ad campaigns that drive engagement and conversions. Additionally, the integration of advanced technologies, such as artificial intelligence and machine learning, is enhancing the effectiveness of retail media networks by optimizing ad targeting and measuring performance in real-time. This dynamic market environment presents ample opportunities for players to innovate and capture market share.

Fig 1: Retail Media Network Market Overview

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Retail Media Network Market Drivers

Rising Adoption of E-commerce

The primary factor responsible for driving the retail media network market includes the increasing adoption of e-commerce. The growth of e-commerce has resulted in massive changes in the shopping behavior of customers as more and more people seek to buy products and services through online platforms. Owing to this, retailers are highly focusing on using their online platforms. Retail media networks provide a targeted and effective way to reach a customer’s target audience and help them to improve their sales as well as generate awareness regarding their brands. The increasing growth of the e-commerce industry is anticipated to create tremendous opportunities, which, in turn, is likely to drive the growth of the retail media network market.

Growing Importance of Data and Analytics

Data and analytics are of paramount importance to the ability of retail media networks to prosper. Using data, retailers can learn more about their customers and their buying habits. This, in turn, makes it possible to create more-focused advertising campaigns that are better tailored to the needs of a particular group of customers. As the significance of using data and analytics in the industry of retail is only bound to grow, the demand for retail media networks by retailers will increase as well.

Increasing Focus on Customer Engagement

Retailers are increasingly focusing on engaging their customers to establish long-term relationships with them. Retail media networks enable retailers to communicate with their customers effectively. Retailers can use advertising campaigns and personalized content to engage customers and attract their repeat business. Therefore, the growing interest in customer engagement should positively affect the demand for retail media networks: “retail media network market accounted a market value of approximately $12,224.7 Million in 2020 and is expected to grow at a CAGR of over 19 % from 2021 to 2028”.

Retail Media Network Market Segment Insights

Retail Media Network Market Network Type Insights

Network Type Segment Insights and Overview The Retail Media Network Market segmentation by network type consists of three major categories, including Closed Retail Media Networks, Open Retail Media Networks, and Hybrid Retail Media Networks. Specifically, each type of network has different characteristics and serves the needs of different markets. Closed Retail Media Networks are owned by a single retailer, who provides access for different brands to its first-party data and data organization, as well as access to advertising inventory. Retail Media Network Market revenue for Closed Retail Media Networks will amount to $30 billion by 2024 owing to the growing adoption of data-driven marketing strategies by retailers.

Open Retail Media Networks are accessible through multiple retailers, and as a result, brands get opportunities to reach a wider audience. The Open type of network allows brands to attain more flexibility and reach, but they have less control over the data. Per Retail Media Network Market segmentation data, Open Retail Media Networks will account for a CAGR of 15.5% during the analyzed period, reaching a market value of $25 billion by 2028. Hybrid Retail Media Networks combine elements of Closed and Open networks, where retailers have an opportunity to expand their consumer base.

At the same time, they still have control over their first-party data and can determine which, and how many, third-party networks to partner with. Specifically, Hybrid type networks are becoming popular, reaching a 12% share by 2024, and accounting for a 16% increase in the next five years. Overall, the choice of the network type depends on the size of the retailer, its data’s depth and capabilities, and marketing goals. Closed Retail Media Networks are more suitable for retailers with valuable data and desiring to provide brands with full data targeting.

Open Retail Media Networks are ideal for brands seeking flexibility and expansion of their consumer base. Hybrid Retail Media Networks offer a compromise between data availability and control and audience expansion.

Fig 2: Retail Media Network Market Insights

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Retail Media Network Market Data Collection Method Insights

First-party data, second-party data, and third-party data are the three main types of data collection methods used in the retail media network market. First-party data is collected directly from the retailer's own customers, such as through loyalty programs, purchase history, and website browsing behavior. Second-party data is collected from other businesses that have a relationship with the retailer's customers, such as social media platforms, data brokers, and publishers. The growth of the retail media network market is being driven by the increasing adoption of digital advertising by retailers, the growing popularity of online shopping, and the increasing availability of data on consumer behavior.

First-party data is the most valuable type of data for retailers because it is the most accurate and reliable. However, it can be difficult to collect first-party data at scale. Second-party data can be a good way to supplement first-party data, as it is often more readily available and can provide insights into the behavior of the retailer's customers. Third-party data can be used to provide a broader view of the market and to identify trends. The choice of data collection method depends on the specific needs of the retailer. Retailers should consider the following factors when choosing a data collection method: The type of data that is needed The accuracy and reliability of the data The cost of collecting the data The timeliness of the data The privacy implications of collecting the data.

Retail Media Network Market Deployment Model Insights

The Retail Media Network Market is segmented by deployment model into on-premise and cloud-based. The cloud-based segment is expected to hold a larger market share in 2023 and is projected to grow at a faster CAGR during the forecast period. This growth is attributed to the increasing adoption of cloud-based solutions by retailers due to their benefits, such as scalability, flexibility, and cost-effectiveness. Cloud-based deployment models allow retailers to access Retail Media Network solutions without the need for upfront investments in hardware and software. Additionally, cloud-based solutions provide retailers with the ability to quickly scale their operations and access the latest features and updates.

Retail Media Network Market Vertical Insights

The Retail Media Network Market is segmented into various verticals, including Grocery, Apparel, Electronics, Home Improvement, and Health and Beauty. Among these, the Grocery vertical held the largest market share in 2023, accounting for approximately 30% of the revenue. The Apparel vertical followed closely, capturing around 25% of the market. The Electronics vertical is projected to witness significant growth in the coming years, driven by the increasing adoption of smart devices and the rise of e-commerce. The Home Improvement vertical is expected to grow steadily, fueled by the growing trend of home renovations and DIY projects. The Health and Beauty vertical is also anticipated to experience steady growth, supported by the increasing demand for personalized and targeted advertising in this sector.

Retail Media Network Market Regional Insights

The regional segmentation of the Retail Media Network Market offers valuable insights into the diverse market dynamics across different regions. North America is expected to dominate the market, accounting for a significant share of the revenue. The region's developed retail sector, presence of major retailers, and high adoption of digital advertising contribute to its dominance. Europe is another key market, driven by the growing e-commerce industry and increasing investment in retail media by major brands. APAC is projected to witness substantial growth, fueled by the rapidly expanding retail sector and rising internet penetration in emerging economies. South America and MEA represent emerging markets with growing potential, as retailers in these regions recognize the benefits of retail media advertising. 

Fig 3: Retail Media Network Market Regional Insights

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Retail Media Network Market Key Players And Competitive Insights

Major players in Retail Media Network Market industry are constantly innovating and developing new strategies to gain a competitive edge. Leading Retail Media Network Market players are investing heavily in technology and data analytics to improve their targeting capabilities and deliver more personalized advertising experiences. The Retail Media Network Market is expected to witness significant development in the coming years, as retailers continue to recognize the potential of this channel to drive sales and build customer loyalty.

A leading player in the Retail Media Network Market is Amazon Advertising. Amazon Advertising offers a wide range of advertising solutions to businesses of all sizes, including sponsored products, sponsored brands, and display ads. Amazon Advertising also provides access to a vast pool of customer data, which allows businesses to target their advertising campaigns more effectively.

A competitor of Amazon Advertising in the Retail Media Network Market is Walmart Connect. Walmart Connect offers a variety of advertising solutions to businesses, including sponsored products, display ads, and video ads. Walmart Connect also provides access to a large pool of customer data, which allows businesses to target their advertising campaigns more effectively.

Key Companies in the Retail Media Network Market Include

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  Target

  
  


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  Banana Republic

  
  


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  Old Navy

  
  


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  Nordstrom

  
  


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  CVS Health

  
  


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  Rite Aid

  
  


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  Macy's

  
  


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  Best Buy

  
  


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  Gap

  
  


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  Kohl's

  
  


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  Albertsons

  
  


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  Walmart

  
  


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  Walgreens

  
  


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  Amazon

  
  


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  Kroger

  
  

Retail Media Network Market Industry Developments

Amazon's continued dominance in the market, with a significant market share and a wide range of offerings.
Walmart's entry into the market with its Walmart Connect platform, which is expected to increase competition.
The growing adoption of retail media networks by small and medium-sized businesses, as they recognize the potential for targeted advertising and increased sales.
The increasing use of artificial intelligence and machine learning to improve the effectiveness of retail media campaigns.
The expansion of retail media networks into new markets, such as Europe and Asia-Pacific.

Retail Media Network Market Segmentation Insights

Retail Media Network Market Network Type Outlook

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  Closed Retail Media Networks

  
  


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  Open Retail Media Networks

  
  


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  Hybrid Retail Media Networks

  
  

Retail Media Network Market Data Collection Method Outlook

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  First-Party Data

  
  


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  Second-Party Data

  
  


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  Third-Party Data

  
  

Retail Media Network Market Deployment Model Outlook

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  On-Premise

  
  


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  Cloud-Based

  
  

Retail Media Network Market Vertical Outlook

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  Grocery

  
  


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  Apparel

  
  


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  Electronics

  
  


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  Home Improvement

  
  


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  Health and Beauty

  
  

Retail Media Network Market Regional Outlook

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  North America

  
  


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  Europe

  
  


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  South America

  
  


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  Asia Pacific

  
  


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  Middle East and Africa