Retail media is often called the “third big wave of digital advertising” after search and social.
And the growth numbers are impressive. But let’s pause and ask a simple question: if retail media is booming, why do so many brands and advertisers feel overwhelmed?
The answer lies in one word: fragmentation.
Today, there are hundreds of retail media networks (RMNs) around the world, each operating with its own rules, reporting systems, and data models. For marketers, that means juggling multiple dashboards, reconciling inconsistent metrics, and stretching budgets thin across too many platforms.
And then there’s the elephant in the room… or should I say, two elephants.
👉 Put simply: two players dominate, and everyone else is left fighting over scraps.
The Reality Check: Retailers in a Doom Loop
For retailers outside the top tier, launching a retail media network sounded like a dream. Consultants promised “pure profit” in an industry notorious for razor-thin margins. The logic was tempting – if Amazon can generate billions in ad revenue, why can’t others?
But here’s the catch: you can’t win meaningful ad dollars without serious investment in tech, sales teams, and measurement capabilities. And you can’t justify that investment without already having the revenue. It’s what I like to call the doom loop of retail media.
As a digital communications strategist, I’ve seen this pattern play out in other industries too: when everyone tries to “go it alone,” fragmentation increases, complexity multiplies, and both brands and end customers lose.
Why Alliances Could Change the Game
This is where alliances come in – and why I believe they could be the turning point for retail media.
Think back to the early 2000s in digital advertising. Marketers were drowning in complexity until ad networks and exchanges simplified the landscape. Retail media is now at that same crossroads.
One promising example is Rippl, a federation of regional grocers and convenience stores in the US. By combining 140 million shopper profiles across 58,000 locations, Rippl offers advertisers scale that rivals the giants. For retailers, it means they no longer have to compete as isolated players; together, they can present a united alternative to Amazon and Walmart.
For brands, alliances mean less operational headache. Instead of negotiating with dozens of small RMNs, they can run campaigns through a single platform with standardised reporting and measurement. That’s not just efficient – it’s a smarter way to plan media.
My Take: Collaboration Is the Future
Of course, building alliances isn’t easy. Retailers will need to agree on governance, data-sharing frameworks, and revenue models. There will be bumps along the way. But in my view, the alternative – continued fragmentation – is unsustainable.
Amazon and Walmart will continue to grow their share. Smaller RMNs, unless they come together, risk fading into irrelevance. Brands, meanwhile, are running out of patience for complexity that drains more time than it delivers value.
The old saying goes: “If you want to go fast, go alone. If you want to go far, go together.” Amazon went fast and claimed dominance. For everyone else, going far may depend on going together.
At Neem, we’ve seen how ecosystems thrive when complexity gives way to collaboration. And that’s why I believe retail media alliances – if done right – could unlock real, sustainable growth for retailers and advertisers alike.
