Retailers have built an $80B tollbooth, and brands are paying up. Retail Media Networks (RMNs) promise precision targeting, but if all you're doing is shifting trade dollars into digital ads, you’re just funding retailer margin, not brand growth. The real winners are brands that connect RMN investment to total commerce outcomes, not just ROAS. The tax isn’t going away—but smart brands will make retailers work for it.
A recent article from Forbes titled "Retail Media's Next Challenge: Proving Real Results" discusses the rapid growth of Retail Media Networks (RMNs) and highlights the increasing pressure on retailers to demonstrate tangible returns on ad spend (ROAS) for brands. As advertisers consolidate their spending with fewer RMNs, they demand more transparency and measurable outcomes, emphasizing the need for investments that connect to total commerce results rather than merely shifting trade dollars into digital ads.
Additionally, an article from CustomerThink titled "Retail Media and CPGs: How do Brands Optimize Investments?" explores the challenges CPG brands face with the proliferation of RMNs. The article emphasizes the necessity for brands to elevate discussions about fund allocation to maximize returns and sustain mutually profitable relationships with retail partners, rather than simply increasing spending without strategic alignment.
These insights underscore the imperative for brands to move beyond treating RMNs as a mere "tax" and instead strategically integrate their investments to drive overall commerce outcomes.