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It’s no secret that Amazon has dominated retail media for most of the past decade.
However, there are several grocery and specialty retailer challengers outside of the ecommerce giant’s shadow powering growth and speculation into how this ad category will transform the marketing ecosystem.
Emarketer estimates U.S. retail media ad spending will hit $54 billion this year, with some counting over 200 retail media networks.
To help simplify this burgeoning landscape, ADWEEK compiled a list (in alphabetical order) of the most important retail media networks for advertisers to know in 2024, based on conversations with experts, analysts and the retailers themselves.
For a deeper dive into specialty and category-specific networks, watch this space in the coming weeks.
“The most successful retail media networks [RMNs] today offer their advertisers a combination of scale, targeting capabilities, and ability to sufficiently measure and report on return on ad spend,” Sarah Marzano, principal analyst at Emarketer, told ADWEEK. To stand out, she continued, RMNs must continue to focus on improving those fundamentals while “developing and delivering on a differentiated value proposition.”
Best Buy Ads
Unique ad proposition: Deep tech focus
Best Buy Ads formally launched as an in-house media business in January 2022 and is one of the frontrunners in specialty retail media. Last year, the company rolled out a new self-service tool called My Ads and launched a partnership with Roku.
“This isn’t new for us,” chief executive (CEO) Corie Barry said during a Feb. 29 earnings call. “[Our ads business] has gotten more scientific. It has gotten a lot more personalized. And I think that first-party data that we have is much more powerful than it has ever been historically.”
What’s new in 2024: The company has teased more of a focus on off-site and CTV and said it has several announcements slated for the coming weeks.
Revenue: Best Buy declined to share revenue information.
Instacart Ads
Unique ad proposition: Off-platform targeting
With over 5,500 brands and 1,500 retailers on its platform, grocery delivery app Instacart spans dozens of regional grocery networks, connecting advertisers to audiences across the U.S. The platform launched its retail media network, Instacart Ads, in March 2020 and followed up with a self-service tool two months later. In 2022, it debuted Carrot Ads, a solution for retailers like Sprouts to build out their own RMNs using Instacart’s tech.
With search, browsing and purchase data from shoppers in over 13,000 cities, Instacart has “incredible insight into what consumers are adding to their baskets,” a spokesperson said via email. Brands see a 15% sales lift when running ads on the platform, the spokesperson said.
What’s new in 2024: Instacart is focusing off-platform this year. Recent partnerships with Google Shopping, The Trade Desk and Roku support the company’s expansion into programmatic, connected TV, search, and social.
Revenue: More than 25% of Instacart’s over $3 billion in revenue last year came from its ads business, according to 2023 Q4 earnings. Ad revenue was up 18% year-over-year.
CVS Media Exchange
Unique ad proposition: Loyalty program of health enthusiasts
With 9,000 locations across the U.S., pharmacy chain CVS has a store within 10 miles of 85% of Americans. With 74 million members to its loyalty program, it has audience data powering “omnichannel campaign experiences with precise targeting that connects digital and in-store activations, closing the loop on measurement,” a spokesperson told ADWEEK.
What’s new in 2024: CVS Media Exchange (CMX), which launched in August 2020, is prioritizing transparency and measurement this year, partnering with Pinterest and LiveRamp on a clean room solution so advertisers can track sales on Pinterest.
The health-focused retailer is adding 25 new premium publishers to its partner list each quarter this year, including category-specific sites like Health, SHAPE and Healthline. In the app and on CVS.com, CMX launched new ad formats including sponsored product carousels, custom brand shop pages and push messaging.
Revenue: CMX declined to share revenue information.
Kroger Precision Marketing
Unique ad proposition: Robust in-house data science team
With a loyalty program that captures 96% of Kroger shoppers, the national retailer has a top RMN slot in the grocery category. Founded in 2017 following the acquisition of cross-channel media solution 84.51°, Kroger Precision Marketing works with over 2,000 consumer packaged goods (CPG) brands.
Over the last seven years, the retailer has built an in-house data science and advertising business with hundreds of employees, letting it build custom programmatic audiences, connect to demand-side platforms (DSPs) and CTV platforms, and operate a self-service ad platform used by thousands of brands with real-time measurement.
“Many retailers claim to have a retail media network, but all they’ve done is outsource the monetization of their commerce sites,” Brian Spencer, marketing director at Kroger Precision Marketing, told ADWEEK. “Brands need retailers to operate with the same rigor and standards as actual media companies.”
What’s new in 2024: Adding media partners and capabilities, and building out pre-curated audiences that let advertisers tap into purchase signals for lifestyle segments like fitness, parenting, travel, and pet parents, Spencer said.
Revenue: Kroger Precision Marketing declined to share revenue information, but noted that Kroger’s CEO highlighted the importance of its RMN during the company’s most recent earnings call.
Orange Apron Media (Home Depot)
Unique ad proposition: Owning the homeowners‘ category
Launched in 2018, Home Depot’s newly rebranded Orange Apron Media (formerly Retail Media+) has a virtual monopoly on homeowners and professional contractors, as well as more than 2,300 retail locations across the U.S. Roughly 80% of the retailer’s consumers own a home, compared to 66% of Americans overall.
What’s new in 2024: Orange Apron Media is building out its audience targeting capabilities and in-store and non-endemic offerings. Next month, the retailer is doubling its in-store digital network from 50 to 100 stores, and testing in-store audio for the first time. The retailer has partnerships with The Trade Desk and TelevisaUnivision and certifications with Meta and Pinterest.
Revenue: Home Depot declined to share revenue information.
Roundel (Target)
Unique ad proposition: Longevity
Target claims more than 15 years in the retail media space, blending ad solutions across search, on-platform and in-store. Its RMN Roundel was launched in 2016.
Last year, it added partnerships with over 40 new premium publishers and apps. Its “One Target” approach works across digital, marketing, loyalty and tech teams to help advertisers reach its more than 165 million shoppers.
What’s new in 2024: The retailer launched a self-service tool for advertisers in March called Roundel Media Studio, letting brands buy search ads directly.
Revenue: While Target doesn’t break out ad-specific revenue, Roundel “continues to drive more than $1.5 billion in value for our business and has grown more than 20% in 2023,” a spokesperson said.
Walgreens Advertising Group
Unique ad proposition: (Another) loyalty program of health enthusiasts
Founded in December 2020, Walgreens Advertising Group (wag) highlights its nearly 9,000 retail locations across the U.S. and Puerto Rico—making it neck-and-neck with its category competitor CVS. The two pharmacy chains’ retail media businesses have been in a race for dominance in the health and wellness space, and the jury’s still out on whether one will take a decisive lead.
In 2022, the company announced self-serve programmatic and clean room solutions through partnerships with The Trade Desk, OpenX and Epsilon. Walgreens claims 95 million members in its loyalty program, according to a press release at the time.
What’s new in 2024: Walgreens Advertising Group has not yet made any announcements regarding new tools for 2024 and did not respond to ADWEEK’s request for comment.
Revenue: Walgreens Advertising Group did not respond to ADWEEK’s questions regarding revenue.
Walmart Connect
Unique ad proposition: Scale
First formalized as Walmart Media Network in 2005, the omnichannel retailer rebranded to Walmart Connect in 2021. A clear runner-up to Amazon’s domination of the retail media space based on Emarketer data, Walmart’s ecommerce business surpassed $100 billion in revenue in 2023. The retail giant has over 5,000 retail locations between Walmart and Sam’s Club in the U.S. and over 10,000 worldwide.
What’s new in 2024: This year, Walmart is focusing in-store by bolstering its onsite digital display, which is shifting to mainly programmatic and auction-based and will be available to all brands from this month. It’s also expanding targeting, measurement, self-serve creative capabilities and support for non-endemic advertisers this year, and building out in-store sampling and demo opportunities for advertisers. Recent pilots with TikTok and Roku are also rolling out to advertisers this year.
Revenue: Walmart’s global advertising business, which includes Walmart Connect, grew 28% to $3.4 billion in 2023, according to its year-end earnings report.
This article has been updated to reflect that Instagram Ads, not Carrot Ads, has more than 5,500 brand partners, and that U.S. retail media ad spending will hit $54 billion this year.
