Avoiding Buyer’s Remorse: Is Retail Media Always the Right Choice for Advertisers?

The retail media sector is expanding rapidly. In Europe, it’s growing at nearly four times the pace of the wider digital advertising market, according to figures from IAB Europe, and it’s forecast to hit €31 billion by 2028.

For all its potential, retail media can also be complex and demanding, particularly for smaller advertisers with limited budgets. Brands should approach it in the same way a consumer considers the purchase of a big-ticket item. Planning and research is essential because if they don't check what they’re actually getting, they could end up suffering from "buyer’s remorse."

The Retail Media Data Advantage

For advertisers, the appeal of retail media is clear. It lets brands target people using real shopping signals: what they’ve bought, what they’ve searched for, and what they’ve shown interest in. This kind of data is powerful, especially close to the point of purchase.

And it isn't just useful for performance advertising. It works for brand awareness journeys, too. For example, if a soft drink brand can see that a consumer is interested in a competitor's product, this person could be a target for their own brand awareness campaigns.

Data Access Isn’t Always Easy or Obvious

However, access to this data can be a major barrier for advertisers. While integrations may exist within major retail media platforms, the most valuable data is often not easily available.

Retailers are understandably protective of their customer data. Approval processes and commercial considerations mean advertisers must often negotiate for access. Integrations typically come with strict conditions, including minimum spend commitments. Furthermore, advertisers may also be compelled to use only retailer-approved or branded creative.

This complexity and lack of control can be surprising for advertisers accustomed to buying on the open web or social platforms, where targeting options are easily configurable and buying tools are largely self-service. Advertisers must consult closely with their partners to understand what data is available, and under what terms it can be used.

Measurement Potential Doesn’t Always Match Reality

In theory, measurement is one of retail media’s strongest selling points. In reality, advertisers have to deal with a wide range of metrics and frameworks across various retail media networks (RMNs), and piecing them together to get a complete view of campaign success can be demanding. It's no wonder 78 percent of marketers want to see better standardization of measurement across RMNs.

Often, closed-loop measurement processes dictated by the RMN are a prerequisite for activation. Measurement frameworks therefore need to be designed before campaigns go live, not bolted on afterwards. For advertisers, this is a major stumbling block, and means planning and activating campaigns quickly is hard.

Uncertainty Over AI’s Longer-Term Impact on Retail Media

The impact artificial intelligence will have on retail media is still uncertain. AI-driven optimization could make retail data easier to activate, help advertisers navigate complexity more efficiently, and speed up campaigns. However, advanced predictive models could also reduce reliance on retailer-owned data altogether by identifying audiences through broader behavioral signals.

While AI could strengthen retail media ecosystems by improving usability and performance for advertisers, it could also disrupt them by diminishing the value of the retailer’s proprietary data.

Retail Media Works Best as Part of a Broader, Joined-Up Strategy

The smartest advertisers approach retail media with curiosity, not assumptions. They ask about hidden integrations and request custom audience segments instead of relying on standard ones. And they also experiment, testing retail media against contextual and broader targeting methods to understand what it really adds.

Retail media isn't a channel that brands can "set and forget." It needs hands-on optimization and honest conversations with clients about what it can — and can’t — deliver. Getting it right isn't easy, but treated like a considered purchase rather than an impulse buy, it can pay off.

Lukas Schneider is director, campaigns and products, MINT Square, a programmatic advertising services provider.