How Retailers Can Maintain Independence as Amazon Expands its Retail Ad Service

Big news came out of the Consumer Electronics Show (CES) this year with the launch of Amazon Retail Ad Service, offering up the marketplace giant’s retail media technology to retailers in beta. At first glance, it sounds exciting to adopt the same technology that’s enabled Amazon to secure exceptional advertising profits over the years.

But not so fast. Adopting the technology could pose major limitations on retailers as they aim to carve their own path and niche within the ever-burgeoning retail media landscape. That means, those that opt to take on Amazon’s offering could potentially lose out on revenue, branding opportunities, and a platform that’s flexible enough to grow with their needs.

So, what exactly should retailers be looking for in a long-term, sustainable retail media solution?

While Amazon’s offering may seem convenient, it may not align with every retailer’s long-term needs. Why? Oftentimes big tech solutions provide a one-size-fits-all approach, but the fact of the matter is every retailer is different and brings a nuanced set of needs to the table. For this reason, it’s crucial that retailers opt for retail media platforms that allow full control over their data and advertising revenue, while also affording them the ability to grow as industry demands evolve.

Successful Retail Media Requires a Full-Court Press 

Deploying a successful retail media platform is a full-funnel pursuit and the fact of the matter is not all platforms deliver on this. To really make a mark and set yourself apart from other retailers, you need to adopt technology that includes offsite, in-store, and social media advertising. Why? The industry is edging closer and closer to a seamless experience for shoppers, whether they're browsing online or through the aisles of their favorite retailers.

Think popular United Kingdom-based grocer Tesco’s investment in digital signage for its stores, featuring on-site discounts as shoppers move about their locations. Lingering in the yogurt section of the dairy aisle? Here’s a discount on a new high-protein yogurt that just hit the shelves. Talk about customization and meeting a customer at the point of purchase.

Opt for a Solution That Can Be White-Labeled

In today’s market, every chance you can get to increase brand awareness is critical. So what happens if your retail media infrastructure can’t be white-labeled? At this point, it’s not clear if Amazon’s solution will allow for this, which could potentially take away a massive opportunity for retailers to provide a bespoke retail media experience.

Again, while it might feel right to adopt a technology that seems tried-and-true, retailers must consider the cost of losing the ability to brand and customize the most valuable and fast-growing advertising channel of the moment. With the margin of success and failure so thin, each and every brand touchpoint matters.

Opting for a Proactive Approach to Retail Media Instead 

While temptation might be at an all-time high to lean into a big tech solution, retailers must understand they have a prime opportunity to define their own retail media destiny. Investing in independent technology, purpose-built for their needs, will provide retailers with long-term autonomy. More so, it will allow them to change their strategies and adjust when the markets shift, and you can bet that they will.

The lesson? Resist the urge to jump on a bandwagon and build a retail media strategy that will stand the test of time (and grow alongside of you). Now is the time to build a future-proof retail media business on your own terms.

Regina Ye is the CEO and co-founder of Topsort, a retail media infrastructure company.