Retail Media Networks: Lessons Learned from Programmatic Pitfalls
When programmatic media buying took off in the early 2000s, it promised marketers efficiency, scale, and precision. But over time, we discovered that the reality was far more complicated: a tangled web of intermediaries, questionable inventory, and murky measurement. Now, as retail media networks (RMNs) rise in prominence, I see many of the same warning signs—and I believe we must act faster to address them.
Our very own George Musi, Chief Business Officer sat down with Kimecko McCoy of Digiday to discuss the future of retail media and lessons and learnings from the world of programmatic.
Facing Familiar Challenges
At Horizon Commerce, we work closely with brands and agencies who want transparency, quality, and clear measurement from their media investments. The allure of retail media was its promise of first-party data and closed-loop attribution, especially as third-party cookies fade away. But the novelty is wearing off, and the same challenges that plagued programmatic—lack of transparency, bundled offerings, and opaque pricing—are creeping into retail media.
The Walled Garden Dilemma
Unlike demand-side platforms (DSPs), which have matured into more standardized, open tools, RMNs still operate as walled gardens. They control access to their proprietary data, leaving marketers in the dark about how their campaigns are actually performing. Bundling audience data with off-site inventory and charging flat rates makes it hard to know what you’re really buying. Marketers are pushing for more granular insights and flexibility, but we’re not there yet.
Power Dynamics and the Cost of Doing Business
Retail media networks have become essential for brands seeking growth and shelf space. In some cases, spending with RMNs is simply the price of admission to maintain a good relationship with retailers. This dynamic gives RMNs significant leverage, and with billions in ad spend flowing their way, there’s little incentive for them to change—unless we, as an industry, demand it.
Incrementality and Inventory Quality
One area where RMNs have so far avoided the programmatic pitfalls is inventory quality and fraud. But the real test will be whether RMNs can prove incrementality—are these campaigns actually driving new purchases, or just targeting existing customers? As marketers, we need robust measurement to justify our investments.
The Road Ahead: A Call for Transparency
We’ve seen this movie before. If retail media networks want to avoid the mistakes of programmatic, they must embrace transparency, standardization, and clear definitions of success. I’m optimistic that, this time, we can close the gap between what marketers need and what RMNs deliver—faster and more effectively.
But until that happens, RMNs risk repeating history, prioritizing profits over progress. It’s up to all of us—brands, agencies, and networks—to push for the changes we need to make retail media live up to its promise.