Data and AI

Retail Media Network strategies: Unlocking high-margin revenue with generative AI

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Think back to the early days of social media. Many companies, including retailers, initially overlooked the immense value of their own first-party data.

Today, as Retail Media Networks (RMNs) take centre stage in the marketing landscape, some organisations risk repeating history by underestimating the value of their data and the broader opportunities it presents.

Retail Media Networks leverage retailers’ rich customer data and owned channels to deliver highly targeted ads, creating a high-margin revenue stream for an industry often operating on tight profit margins. These networks provide personalised digital experiences to high-intent customers, perfectly aligning with brands eager to diversify their advertising strategies beyond traditional media and marketplaces. Additionally, RMNs offer end-to-end visibility into the customer journey, from initial exposure to purchase, enabling retailers and brands to optimise outcomes collaboratively.

Overcoming data challenges in Retail Media Networks

A common hurdle in establishing successful RMNs lies in managing data effectively—from access and analysis to integration, insights generation, and governance. Retailers must:

  • Establish a strong data strategy
    Properly prepared, formatted, and integrated data is critical for segmentation accuracy and actionable insights
  • Address legacy technology limitations
    Overcoming outdated systems is essential for adopting advanced tools like AI and generative AI
  • Tie insights to operational outcomes
    Actionable insights lose value without the ability to deliver. For example, advertising a product must be backed by sufficient inventory to meet customer demand. Failing to do so diminishes ROI for both the retailer and their brand partners.

Retail Media Networks

Turning retail transactions into experiences

Maximising revenue with Retail Media Networks

Retail Media Networks hold transformative potential, offering new revenue streams, enriched customer experiences, and stronger brand partnerships. While launching and scaling an RMN demands significant investment, the rewards—higher margins, customer satisfaction, and competitive advantage—far outweigh the challenges.

By adopting a strategic approach, leveraging generative AI, and collaborating with experienced end-to-end service providers, retailers can:

  • Accelerate their path to value
  • Optimise ROI for themselves and their brand partners
  • Capture a significant share of this fast-growing market

With the right foundation, RMNs can become a cornerstone of every retailer’s long-term strategy, driving satisfaction, value, and growth for all stakeholders.

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Meet our experts

Gemma Leutton

Gemma Leutton

Senior Director | Capgemini Retail CoE
Gemma is a Senior Director at Capgemini in the Retail CoE, which exists to redefine the retail landscape and deliver transformative opportunities for retailers across the full breadth of the retail operating model. She has extensive global experience, having led digital transformations for tier-one CPG’s and retailers.
Owen McCabe

Owen McCabe

Vice President, Digital Commerce – Global Consumer Goods & Retail, Capgemini
Owen is Capgemini’s Global VP for eCommerce. He previously led the Digital Commerce Practice at Kantar and held senior marketing and sales roles at both Procter & Gamble and Nestle. He has domain expertise in eCommerce, digital marketing, brand marketing, route-to-market strategy, and category management. Owen’s passion for digital commerce came about after a private equity assignment in an online travel business.