Unlocking the Six Stages of Retail Media: A Roadmap for Retailer Success

<p>By: Mark Baum, Chief Collaboration Officer &amp; Senior Vice President, Industry Relations, FMI</p><img src="https://www.fmi.org/images/default-source/blog-images/evolution-retail-media-cp.tmb-large-350-.jpg?Culture=en&amp;sfvrsn=78f21135_1" style="float:right;margin-bottom:10px;margin-left:15px;margin-top:20px;" class="-align-right" alt="Report cover with digital icons." sf-size="140135" /><p>Retail media is evolving from a trend to a transformation. As more retailers look to optimize consumer engagement and monetize their digital and physical touchpoints, understanding how to build and scale a retail media network (RMN) is critical.</p><p>In our recent report, <a href="https://www.fmi.org/forms/store/ProductFormPublic/evolution-of-retail-media"><em>The Evolution of Retail Media: Decoding What Works &mdash; And What Doesn’t</em></a>, we examine this transformation closely. RMNs are no longer a niche marketing tactic but a strategic growth engine, driving both performance and insight. Our forecast projects that CPG retail media spending will reach $26.6 billion by 2026, with grocery channels contributing $6.7 billion. Within grocery, food departments are expected to command nearly 87% of that investment, proof that RMNs are evolving beyond ads per se to integral components of the omnichannel shopper experience.</p><p>To help retailers navigate this evolving space, FMI and Inmar Intelligence have outlined six stages of retail media maturity. It is a sequential build through each stage, offering a roadmap to turn data and engagement into increased consumer transactions and additional retail revenue.</p><h5>Stage 1: The Power of Retail Data</h5><p>Everything starts with first-party data. Retailers must understand what they have, what they need, how it’s stored, and how to activate it responsibly. Data governance, consent, accuracy, and reporting are essential.</p><h5>Stage 2: Offsite Media</h5><p>With data in order, retailers can activate it beyond their platforms. Offsite media includes programmatic ads, connected TV, and display campaigns that target audiences across the web, extending reach and driving traffic back to stores.</p><h5>Stage 3: Onsite Media</h5><p>When traffic arrives, conversion is key. Sponsored search, native banners, and featured placements influence shopper behavior on your site or app. These high-intent placements are valuable to suppliers.</p><h5>Stage 4: Social Strategy</h5><p>Social platforms like Instagram, TikTok, and Facebook are now commerce engines. Integrated campaigns that combine shopper data with reach create deeper engagement and measurable ROI.</p><h5>Stage 5: In-Store Integration</h5><p>Retail media extends into the store via smart shelf tags, screens, and mobile ads. Bridging digital with in-person creates a seamless omnichannel experience.</p><h5>Stage 6: Maturity Model &amp; Optimization</h5><p>Operational excellence requires clear processes, KPIs, and team alignment. A maturity model benchmarks success and supports continuous improvement.</p><p>Smaller retailers can participate, too. Whether launching or scaling, understanding these stages leads to smarter investments and new value.</p><blockquote>We’re excited to partner with FMI because we share a belief in the tremendous potential retail media holds for both retailers and brands. Unlocking that potential requires more than just interest &mdash; it takes a thoughtful investment of time, talent, and resources to build the strong foundation that drives long-term performance. But success starts with education. The Mastering Retail Media Series provides the tools and confidence needed to take the first step, and we’re thrilled to make it accessible to the entire industry.<footer>Kathy Hayden, SVP, Strategic Partnerships for the MarTech Division at Inmar Intelligence</footer></blockquote><h5>Want to Learn More?</h5><p>Join us June 26 for the kickoff of the <em>Master Retail Media Series</em>, presented by FMI and Inmar Intelligence. The topic is "How to Lay the Foundation for a Successful Network."</p><p><a href="https://www.fmi.org/forms/meeting/MeetingFormPublic/view?id=D3D82700000003" class="button">Free registration now open</a></p>

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