Retail Media Networks (RMNs) are rapidly transforming the advertising landscape. Global retail media advertising spend is forecast to surpass television by 2028, and the UK market is set to double in size by 2026, according to GroupM. This explosive growth is driven by retailers’ ability to leverage rich pools of first-party data, enabling brands to target high-intent shoppers with unprecedented precision and relevance across the entire customer journey. RMNs have evolved from simple point-of-sale promotions to full-funnel media ecosystems, offering closed-loop measurement and incremental return on ad spend (iROAS) that traditional media cannot match.

The next three years are critical: brands and retailers who fail to build agile, data-driven retail media capabilities risk falling behind more innovative competitors. Success will require investment in new operating models, real-time measurement, and collaborative partnerships – making retail media not just another budget line, but the backbone of modern commerce and marketing.

In this series, we’re bringing you actionable retail media strategies and key tensions to address as you navigate your retail media journey. Drawing on insight from across the ecosystem – including retailers, brand owners, technology providers, and agency partners – in each blog we’ll unpack the six critical themes that will define the next generation of RMNs:

  • Understanding the ABC of your audience
  • Pivoting your operating model
  • Turning data into value
  • Getting ready to scale
  • Capturing value through measurement
  • Navigating a fragmented RMN landscape

So, what do we mean by ABC?

Retail media’s true power lies far beyond basic customer profiles. To achieve real impact, it’s essential to delve into the ABC of audience understanding – addressability, behaviours, and context. These three pillars underpin relevance and distinguish the campaigns that simply reach consumers from those that genuinely influence purchasing behaviour.

  1. Addressability – At the heart of retail media is the capacity to accurately identify and engage customers. With third-party cookies becoming obsolete, retailers’ first-party data has become a prized resource – provided it’s well-structured, consented, and actionable. Addressability is about targeting audiences precisely across various channels, all while upholding trust and privacy. Retailers who invest in robust, interoperable data systems will be best placed to deliver scale and confidence to advertisers.
  2. Behaviours – Knowing what customers do is just as vital as knowing who they are. Insights from purchase history, browsing activity, loyalty schemes, and engagement signals reveal intent – if analysed to uncover patterns and predict future actions. Too often, behavioural data is underutilised, seen merely as a reporting tool rather than a predictive asset. In reality, these insights can inform not only advertising but also product selection, promotions, and even innovation. When RMNs harness behavioural signals in campaign planning, they shift from static targeting to dynamic influence.
  3. Contexts – No two shopping moments are identical. Contextual understanding means recognising the external factors that shape decisions – including location, time, weather, seasonality, or even in-store dwell time. Context bridges the gap between data and relevance: a message delivered at the right moment, in the right setting, can be exponentially more effective. As physical stores become increasingly digitised, real-time contextual targeting becomes a powerful tool for tailored engagement.

Why does integrating ABC matter?

Addressability, behaviours, and contexts must be considered together, not in isolation. Many retail media networks focus on just one dimension – often addressability – and as a result, underperform. By aligning all three, retailers can offer advertisers what they value most: scalable reach, predictive insight, and contextual relevance. This integrated approach not only boosts campaign ROI but also unlocks broader organisational benefits, from customer loyalty to product innovation.

Mastering the ABC of your audience is the blueprint for building Retail Media Networks that are effective, distinctive, and ready for the future.

The funnel, redefined

Retail media is no longer confined to driving last-minute purchases or clearing stock through promotions. The latest generation of RMNs operates as strategic, full-funnel media ecosystems, enabling brands to build awareness, nurture consideration, and drive conversions – all within the retailer’s own environment. What’s more, these networks now extend their reach beyond the retailer’s platforms, activating audiences on channels such as connected TV. This shift is fundamentally changing how audience insights shape campaigns and in parallel, reducing the friction for audiences, as we move closer to always-on shopping.

Performance-driving signals

Retail media’s influence stretches far beyond digital platforms. For many retailers, physical stores remain the primary revenue driver, making them a vital arena for retail media innovation. By combining experience design with data intelligence, the shop floor becomes a measurable media channel. Retailers can now analyse dwell times, footfall, and engagement points to deliver content and experiences that both enhance the customer journey and deliver tangible results for brands. Digital screens, signage, and interactive displays are no longer mere fixtures – they are integral components of a data-driven retail media ecosystem, informing everything from creative placement to timing.

Making loyalty mean more

With the decline of third-party cookies, retailer-owned data – especially from loyalty schemes – has become one of marketing’s most prized assets. “Loyalty is the new cookie” states Alexis Marcombe, Managing Director at RelevanC. This is more than a catchy phrase; it’s a strategic reality. Loyalty programmes enable retailers to deliver value-rich, privacy-respecting personalisation, offering brands accuracy without compromising consumer trust. However, unlocking this potential requires commitment not just from brands, but from within the retail organisation itself.

RMNs can deliver three distinct data signal types

RMNs equip marketers with three primary categories of data signals, each contributing to a richer understanding of audiences and more impactful campaigns:

  • Behavioural signals: Insights like purchase frequency, basket make-up, loyalty engagement, and conversion journeys.
  • Contextual signals: Factors like time of day, weather conditions, store format, in-aisle activity, and seasonal patterns.
  • Transactional signals: Information on replenishment cycles, average spend, recent transactions, and redemption history.

By harnessing these signals within well-structured Retail Media Networks, retailers can achieve much more than simply generating additional advertising revenue. This approach enables the cultivation of stronger customer relationships, the delivery of more effective marketing initiatives, and ensures the brand remains resilient and relevant in an evolving media landscape.

As the retail media landscape continues to evolve at pace, success will belong to those who combine deep audience understanding with the agility to adapt and scale. This is where Capgemini’s retail expertise truly comes to the fore. With a proven track record of delivering transformative solutions for some of the world’s largest retailers, Capgemini brings together global scale, local insight, and cutting-edge technology to help clients unlock the full potential of RMNs. From developing unified profitability tools for leading UK grocers to driving innovation through partnerships with industry bodies and technology leaders, Capgemini is at the forefront of shaping the future of retail.

Our teams are trusted by 25 of the world’s largest retailers and more than 27 of the top 30 consumer product companies, delivering measurable impact through data-driven strategies, advanced analytics, and collaborative partnerships. Whether it’s optimising product profitability, enabling seamless omnichannel experiences, or pioneering new approaches to commerce media, Capgemini’s holistic approach ensures our clients are always one step ahead.

Watch this space for the next blog in our series, where we’ll dive into theme two: pivoting your operating model.

We’ll explore how retailers and brands can build the agility and resilience needed to thrive in a rapidly changing market – sharing practical strategies, real-world examples, and expert insights to help you stay ahead of the curve.