Retail Media Advertising 101: The What, Why, and How

You’re browsing Amazon for an insulated tumbler. At the top of the page, you see a brand featured in a prominent location. Or you are at a self-checkout counter and an ad pops up on the screen, influencing your last-minute purchase. These are retail media ads in action. 

Despite its proven effectiveness, retail media advertising often doesn’t get the spotlight it deserves. But remember, when done right, these can be some of the most powerful ads in a marketer’s arsenal. Because they deliver targeted engagement and drive sales. 

Whether you’re a marketer looking to refine your advertising strategy or a small business owner exploring ways to amplify your brand’s reach, retail media offers a compelling opportunity to connect with consumers at the point of purchase.

In this post, we’ll unpack everything you need to get started with retail media advertising. From the key ad types supported by major retailers to actionable design and content tips, we’re diving into all the basic details. So, without further delay, let’s get started. 

Retail Media Advertising: Why It’s a Big Deal in 2025

Retail media advertising is the type of advertising that involves placing your brands and products on a retailer’s channels – their websites, apps, and physical stores, for example. The one main difference between retail media ads and other ads is that the former is delivered to shoppers while the latter targets a broader group – shoppers, and users simply browsing for ideas or answers. A targeted reach means a higher chance of getting clicks and conversions. 

Did you know that retail media advertising is the most rapidly growing digital advertising channel in Canada? With about 1 in 5 digital ad dollars spent on retail media, this continues to be one of the key areas of focus for businesses big and small. But why? Here are a few reasons: 

• Precise targeting – one area many brands struggle with is to reach the right audience at the right time, and this is where retail media ads have a clear advantage. 
• Boosted sales – unlike ads on other channels that help build awareness or exposure, retail media ads target active shoppers. In other words, they are designed to reach shoppers with a strong purchase intent and therefore help boost conversions. 
• Better use of first-party data – on retailers’ media networks, brands have access to valuable pieces of information like the customer’s purchase history and browsing behavior. This helps create more personalized ads that connect with them. 

So, retail media is effective. Now the real question – how do you make it work for your brand? Let’s talk about a few quick tips. 

Tips to Make the Most of Retail Media Advertising 

Choose the right retail media network 

The first step, undoubtedly, is to find the right channels for your ads because not all retail media networks are created equal. 

There are hundreds of retail media networks to choose from. Here are a few you might already know. 

• Amazon Ads 
• Target Roundel 
• Walmart Connect 
• eBay 
• Home Depot 
• Etsy 
• Instacart Ads
• Best Buy Ads 
• Kroger Precision Marketing 
• Criteo Retail Media 
• Wayfair

Identify the right retail media network for your audience, product, and campaign goals. Because different platforms have different benefits, like niche targeting, premium positioning, or category-specific reach. 

For instance, Amazon’s wide audience base is good for reach and exposure, whereas ads on networks like Instacard Ads help increase visibility in specific product categories like grocery and household items. 

So, a few quick questions to ask in order to come to a better conclusion will be:

• What are the ad formats the network supports?
• Is the network more about broader reach or reaching a niche audience? 
• Is the retailer a primary destination for your product category?
• What level of first-party data and targeting options does the network provide? 

Pick the right retail media ad format & placement 

On a broader level, based on where the ads appear, retail media ads can be:

• On-site ads – these are ads that appear within the retailer’s own website or app. 
• Off-site ads – these are ads appearing outside the retailer’s ecosystem, on third-party sites. 
• In-store ads – these are physical and digital ads appearing in physical store locations. 

We’ll delve into the popular formats within these categories a little later in this blog. But a quick note here is that different formats and placements help achieve different goals. 

For example, in-store ad placements near checkout counters help drive impulse purchases, whereas Sponsored Brands on sites like Amazon help improve brand visibility. 

Here is a snapshot of Sponsored Products displayed on the Costco website. Sponsored recommendations like these are used by retailers to upsell and cross-sell, and can therefore be useful to target high-intent shoppers who are looking for options. 

But how do you know what placement and format you need? 

• Consider the shopper funnel stage and identify the right format for each. 
• Know what format works best on the chosen retail media network. 
• Do not set and forget. Use A/B testing across formats and placements to find what works for you. 

Take an omnichannel approach 

Remember, with the digital channels branching out wider and wider by the day, shoppers do not have a linear path when shopping. Some look for ideas on social media and place their order via an app. Others do their research online and purchase from a physical store. Some might spot a billboard or an in-store ad and then shop from online stores for better deals. 

Consider this omnichannel shopping experience and ensure that your retail media ads seamlessly fit into the structure. 

But what does an omnichannel approach mean when you are advertising on a retail media network? This could be something as simple and straightforward as aligning your retail media messaging and creative with your brand’s website, social media presence, email marketing, and content efforts. That’s a good starting point. 

Secondly, consider investing partly in online retail media channels and partly in in-store options. 

So, while advertising on retail media networks might feel different from advertising on other digital channels like social media and Search, design these ads and craft the content and copy as you would for the other platforms. 

An omnichannel approach like this helps streamline the shopping experience and better convince the shopper to place an order. 

Make your ad a visual magnet 

Like every other digital channel, there are several brands and products competing for attention on retail media networks, too. Therefore, creatives are a crucial component of your retail media ads. 

Hence, the visual and textual elements of your ads should go beyond basic product representation and connect with shoppers on an emotional level. These listing images should stop the scroll and encourage clicks. 

To achieve this: 

• Use a mix of compelling images, engaging videos, and stunning animations that grab attention. 
• Instead of using generic media, tailor your creatives to the message and the audience segment you are targeting. 
• Ensure that your designs communicate the benefit or value clearly and instantly. 
• Finally, create designs that feel native to the platform.

This step is pivotal because the digital shelf feels much more crowded than typical supermarket shelves, and therefore, getting customers to notice you amidst the clutter can be challenging. Hence, strong creatives help drive click-through rates and conversions. 

Measure what matters 

One of the main benefits of retail media advertising is the valuable first-party data and closed-loop measurement these networks support. Therefore, you need to identify and measure what truly matters.

Different networks support analysis of different metrics like ROAS (return on ad spend), add-to-cart rate, customer acquisition, clicks, impressions, and more. When you prioritize meaningful KPIs, you make informed decisions about ad spends, about allocating budgets across placements and formats effectively. Eventually, this helps achieve better ROI. 

Use the metrics to implement a closed-loop system to understand how your ads influence buying decisions. This helps you adjust your future campaigns effectively. 

To measure these critical parameters, use the reporting dashboard and analytics tools provided by each retail media network. 

While retail media networks have their own set of metrics, identify those that directly align with your campaign objectives. Continuous monitoring and analysis are crucial to identify opportunities for real-time campaign optimization, improving efficiency, and maximizing results.

Types of Retail Media Ads + How to Ace Them 

Sponsored listings 

Also known as Sponsored Products or Promoted Products on different platforms, sponsored listings are the most commonly used types of retail media ads. 

Sponsored listings are promoted amidst the search results on the retailer’s website or app. For instance, here are a few sponsored products promoted on the search results page of Target. You’ll notice the label “ad” or “sponsored” or “promoted” next to the listing ad. 

The native feel of sponsored listings is what makes this one of the most popular retail media ad types. 

KIMP Tips: 

• Focus on clarity – you do not want a cluttered image to send customers away. 
• Showcase your products from diverse perspectives to create an immersive experience. 
• Include subtle, meaningful text overlays highlighting key features.
• Opt for clean backgrounds instead of cluttered and busy layouts. 

Sponsored listings thrive on visuals that grab attention and convert in seconds. Need help designing sponsored ad designs with a native feel? Get KIMP! 

Display and banner ads

Display and banner ads on retail media networks are similar to display and banner ads on traditional platforms like Search. They can appear across diverse sections on the retailer’s website or app.

One of the main differences between display ads and sponsored listings is that sponsored listings are only displayed when the user is searching for something specific, but display ads appear on high-traffic pages like the homepage and category pages. 

KIMP Tips: 

• Use compelling graphics that instantly communicate the message.
• Incorporate lifestyle shots that stand out. 
• Pay attention to contrast – you do not want the product to fade into the background. 
• Include your brand colors and brand elements like logos relevantly. 

Sponsored brands 

Sponsored Brands are brand showcase ads supported by various retail media networks. Evidently, these are handy when it comes to elevating a brand’s presence within a niche. For instance, here is a “Brands related to your search” placement on Amazon. 

As you can see, these are ads that place your brand right within the search results page but instead of focusing on one single product, these ads place the spotlight on the brand itself. Hence, your brand gets positioned as one of the prominent names in the shopper’s category of interest. This helps build brand visibility and credibility as well. 

KIMP Tips: 

• Make your logo pop – you want your brand identity to shine through the design. 
• Include an immersive image/video as supported, to instantly introduce your brand and the value you create. 
• Some retail media networks, like Amazon, also allow brands to showcase product carousels along with their brand ads. Make the most of this and feature your best sellers and best-rated products to grab attention. 
• Ensure visual consistency between your brand ad and your brand page on the retailer’s website. Here’s what the brand page looks like from the brand ads we discussed earlier. 

Sponsored TV ads 

Sponsored TV ads are ads placed in front of the TV audience, and this is a crucial retail media ad type to focus on, given the growing popularity of CTV (connected television) experiences. Amazon’s Sponsored TV ads are a good example of this format. Walmart is another well-known retail media network that supports TV ads through their partnership with Roku. 

Sponsored TV ads are aired within the retailer-owned streaming service, like Amazon Prime, or within a partner streaming service, as in the case of Walmart. 

Embedded QR codes, add-to-cart overlays, and a host of other interactive features help make these ads immersive and high-converting. 

KIMP Tips: 

• Tap into storytelling to appeal to the TV audience. 
• Keep your ad snappy and straightforward. 
• Focus on the entertainment value. Remember that your ad is interrupting the viewer’s TV experience. So you need engaging and entertaining content to connect with them. 
• Include a clear and relevant CTA, guiding viewers on the next steps, such as visiting your website or making a purchase.

In-store ads 

Finally, we have ads that are placed in physical stores. These can be simple standee banners, posters, shelf signage, floor decals, endcap displays, or even audio ads played at stores. 

The main goal of ads placed within brick-and-mortar stores is to capture consumer attention during their shopping journey. This can help with both brand exposure and an increase in sales.

The promotion of freebies or even a sampling booth within a store can help introduce your brand to a new audience by eliminating barriers. On the other hand, strategically placed signage and displays can guide shoppers toward specific products, influencing purchasing decisions at the point of sale. The key is to identify the format that works best based on the store layout and foot traffic. 

KIMP Tips: 

• Use strong branding – your brand colors, tagline, mascot, and brand fonts will all help customers instantly recognize your brand. 
• Prioritize readability – unlike digital screens, there is no zoom option for physical ads. Hence, choose legible fonts and use a good contrast to clearly deliver your message. 
• Include clear contact details in your ad.
• Use QR codes to simplify engagement with your ad. The QR code can include links to your social media channels or even create a custom landing page with all relevant links or contact details. Here’s an example. 

Unlock the Power of Retail Media Ads With Unlimited Design 

In short, the landscape of retail media advertising is brimming with opportunities. And your competitors are already tapping into them. So, you do not want to lag behind them. Use these strategies and tips to craft the most relevant and effective retail media ad strategies for your brand. While you work on your strategy, it helps to have a dedicated design team handling all your ad designs. How would you like to have a dedicated design powerhouse at your fingertips? Sounds good? Sign up for a KIMP subscription today! 

Register now for a free 7-day trial!