By: Closed Loop Confidential Staff
Retail media is booming. Every headline, every investor call, every conference panel seems to be shouting the same thing: “First-party data is the future.”
And that part is true. First-party data is powerful. It’s privacy-safe. It’s proprietary. It’s what advertisers crave.
But here’s the real question: if you’ve got first-party data, should you launch a retail media network (RMN)?
Short answer: no.
Longer answer: not unless you’re built for it.
Let’s break it down.
What Does Justify a Retail Media Network?
Not all first-party data is created equal. Some companies are sitting on goldmines—others have a few nice nuggets, but not enough to build a full media business around.
Here’s what strong RMNs tend to have in common:
Scale that matters to advertisers
A steady stream of high-frequency, high-intent shopper behavior. Think grocery, mass retail, pharmacy, beauty, pet—categories where customers shop often, and where purchase data is deep and granular.
Closed-loop attribution
Can you prove that an ad exposure led to a purchase? Online or offline? That’s the promise of retail media. If you can’t deliver it, you’re missing what sets RMNs apart from other channels.
Owned ad real estate
This isn’t just about targeting—it’s about inventory. Can you offer onsite search, display, sponsored listings, in-app ads, or even in-store digital signage? If not, you’re going to struggle to scale meaningful campaigns.
Organizational alignment
A successful RMN sits at the intersection of merchandising, marketing, analytics, and IT. If those teams aren’t aligned—or worse, if they compete—you’ll spend more time fighting fires than running campaigns.
Why First-Party Data Alone Isn’t Enough
Having data doesn’t mean you should build an ad business. Some companies try to stand up a retail media network because they’ve heard the margins are good, or because they think having a DSP makes them an RMN.
But here are some real red flags that indicate you might not be ready:
You lack digital scale
If your site or app traffic is modest, there may not be enough impressions to sell—at least not at scale. Advertisers want reach and frequency.
Your data isn’t transaction-rich
Do you know what customers actually bought? Or do you just have email addresses and site visits? Without SKU-level purchase data, your targeting and attribution will be weak—and buyers will notice.
Your media offering is thin
If you don’t have a mix of onsite, offsite, in-store, and performance reporting capabilities, it’ll be tough to compete with larger RMNs that can deliver full-funnel solutions.
You’re in a low-frequency vertical
Furniture, luxury fashion, automotive—these categories don’t have the same repeat behavior as CPG or grocery. That doesn’t mean you can’t monetize your data. But it might not look like a traditional RMN.
So What Should You Do With First-Party Data?
If launching an RMN isn’t the right move, that doesn’t mean you should sit on your data. There are smart, strategic ways to monetize it without going full throttle:
- License it into a clean room or co-op
Work with platforms like Epsilon, LiveRamp, or Circana to let advertisers activate your data in privacy-safe ways, without building your own ad stack. - Develop curated media partnerships
Sponsor branded content, create shoppable guides, or partner with RMNs as an extension of their platform. - Offer co-branded marketing programs
Especially for travel, loyalty, or niche retail businesses—think about how your customer insights can fuel smarter storytelling, not just smarter targeting.
The Bottom Line
First-party data is the asset. A retail media network is just one way to activate it. But that path only makes sense if you have the scale, infrastructure, and cross-functional alignment to support it.
Some companies should absolutely build their own RMNs. Others should monetize their data through smarter partnerships, syndication, or curated sponsorships.
Because not every business needs to own the tracks and the train to reach their destination. Sometimes, it’s smarter to ride with someone who’s already built the system.
Want help figuring out which path makes sense for your brand?
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