Building a Retail Media Network:
A Pathway to Increased Revenue & Customer Engagement
The Future of Retail Advertising
The concept of retail media networks (RMNs) is no longer just an emerging trend; it’s a strategic imperative for modern retailers looking to transform their business models. According to eMarketer, RMN ad spend is expected to surpass $40 billion annually in the United States by 2025, reflecting a shift in how brands allocate their advertising budgets. This evolution highlights the growing desire for retailers to become media platforms themselves, monetizing their first-party data and extensive customer reach.
For retailers, the question of whether to invest in an RMN comes with a fundamental decision: build or buy. Many platforms on the market offer ready-made solutions that promise quick setup, but these often lack the flexibility, control, and integration necessary for long-term success. Building an RMN using a platform like Salesforce—one that many retailers may already be using for other functions—presents a unique opportunity to leverage existing technology, create a scalable and secure ecosystem, and maintain control over data and monetization strategies. This blog will explore the benefits of building a custom RMN and demonstrate how an integrated approach can yield both immediate and long-term advantages.
Why Build an RMN: The Strategic Advantage
Building an RMN allows retailers to fully control the architecture, design, and evolution of their media platform. This isn’t just about generating ad revenue; it’s about turning a business into a data-powered media entity that offers advertisers unparalleled reach and insight.
While off-the-shelf solutions can seem attractive for their ease of deployment, they often fall short in several critical areas:
1. Integration Limitations: Pre-built platforms may not integrate seamlessly with a retailer’s existing CRM, e-commerce, or analytics systems, leading to siloed data and missed opportunities.
2. Customization Challenges: Many third-party solutions offer limited customization, restricting a retailer’s ability to tailor the RMN to its unique customer base or advertiser needs.
3. Scalability Issues: As retailers grow, off-the-shelf solutions may struggle to scale without costly upgrades or transitions, creating unnecessary disruption.
By building an RMN on a unified platform like Salesforce, retailers can avoid these pitfalls. Platforms such as Salesforce Media Cloud and Data Cloud offer flexibility, scalability, and integration capabilities that allow retailers to start small and scale their RMN as their business expands. This approach not only future-proofs the investment but also enhances the ability to customize and adjust as new opportunities and technologies emerge.
Monetization Potential: Turning Data into Revenue
Retail Media Networks (RMNs) are proving to be significant revenue drivers, especially as firms seek new growth avenues. By leveraging customer data—the currency of modern businesses—retailers can unlock targeted, personalized advertising opportunities that generate substantial new revenue streams. For those using Salesforce, this integration allows a seamless way to centralize, manage, and activate data. Additionally, solutions like Data Cloud and Snowflake can transform previously siloed third-party data into actionable insights, making your RMN more powerful. With a secure, scalable platform like Salesforce, retailers gain a reliable foundation to grow and innovate, maximizing the full revenue potential of their RMN strategy.
The Power of Data Cloud
Salesforce Data Cloud allows retailers to unify their customer data across physical and digital touchpoints, creating a comprehensive profile that can be used for precise ad targeting. Retailers can segment audiences based on purchasing behavior, browsing patterns, and in-store engagement, offering advertisers the ability to reach customers with the right message at the right time. This granular insight enhances campaign effectiveness, leading to higher returns for advertisers and increasing the value of the RMN.
Beyond the Basics: Custom Analytics and Attribution Capabilities
One of the most compelling benefits of building an RMN on a platform like Salesforce is the ability to provide advertisers with advanced analytics and transparency. For example, by integrating a tool like Tableau, retailers can offer real-time insights into campaign performance, customer interactions, and ROI, all accessible through an intuitive dashboard. This level of visibility is often absent in generic RMN platforms, giving retailers who build their own system a competitive advantage.
Retailers can also manage attribution more effectively by aligning ad exposure data with sales and engagement metrics across multiple channels, ensuring advertisers receive accurate and comprehensive reports. By providing transparency and precision, retailers create a trusted environment that attracts high-value advertisers who are looking for accountability in their ad spend.
Long-term Benefits of Building on an Established Platform
Choosing to build an RMN on a comprehensive platform like Salesforce offers retailers a multitude of long-term benefits that go beyond immediate functionality:
1. Scalability and Flexibility: Platforms like Salesforce are designed to grow with businesses, allowing retailers to start with basic ad placements and gradually expand to include more sophisticated offerings such as in-store digital signage, mobile app ads, and personalized email campaigns. The ability to scale incrementally reduces upfront costs and risks, making it easier to test and optimize the network before full-scale deployment.
2. Security and Compliance: With increasing concerns around data privacy and regulatory requirements (e.g., GDPR, CCPA), building an RMN on a secure platform like Salesforce ensures that retailers can maintain compliance and protect customer data. This not only builds trust with consumers but also reassures advertisers that they are partnering with a compliant and secure network.
3. Customization and Innovation: Retailers have the freedom to design their RMN in a way that maximizes their unique assets and integrates seamlessly with other elements of their business, such as loyalty programs and CRM systems. For example, using Experience Cloud, a retailer can build partner portals that allow advertisers to access campaign data, manage their inventory, and view performance reports in real time. These portals offer a level of customization and support that standard solutions may not provide.
The Value Proposition for Advertisers: Building Trust and Delivering Results
A custom-built RMN offers not only the potential for higher returns but also the opportunity to forge stronger partnerships with advertisers. Advertisers today seek transparency, accuracy in attribution, and actionable insights. Building an RMN on a platform that supports these needs sets retailers apart from those using off-the-shelf solutions:
Enhanced Attribution Models: By integrating customer behavior data across all touchpoints (e-commerce, mobile apps, in-store interactions), retailers can provide advertisers with a complete view of the customer journey. This level of transparency helps advertisers optimize their spend and refine their strategies, leading to better results and higher retention rates.
Customizable Reporting and Analytics: Advertisers appreciate platforms that offer real-time data access. Retailers who use advanced analytics tools, such as Tableau embedded within their RMN, can provide detailed insights on ad performance, engagement metrics, and conversion rates. This helps advertisers track the effectiveness of their campaigns with precision, building trust and encouraging long-term partnerships.
Challenges and Mitigation Strategies in Building a Custom RMN
While the benefits of building a custom RMN are significant, it’s important to acknowledge and address potential challenges:
Resource Intensity: Building a custom RMN requires significant time, effort, and expertise. Mitigation: Start with a phased approach, focusing on core functionalities first. Leverage existing Salesforce expertise within the organization or consider partnering with experienced Salesforce consultants.
Technical Complexity: Integrating various systems and data sources can be technically challenging.
Mitigation: Utilize Salesforce’s robust API ecosystem and pre-built connectors. Invest in thorough planning and architecture design before implementation.
Advertiser Adoption: Convincing advertisers to adopt a new platform can be difficult, especially if they’re used to working with established RMN solutions.
Mitigation: Develop a comprehensive onboarding program for advertisers. Showcase unique features and benefits through pilot programs and case studies.
Ongoing Maintenance and Updates: A custom RMN requires continuous updates and maintenance to stay competitive.
Mitigation: Build a dedicated team for RMN management and leverage Salesforce’s regular updates and new feature releases to keep the platform current.
Cost Considerations: Building vs. Buying an RMN Solution
When deciding whether to build or buy an RMN solution, cost is a crucial factor. Here’s a breakdown of key considerations:
Building a Custom RMN:
- Initial Investment: Higher upfront costs for development, integration, and customization.
- Long-term Value: Greater control over features and scalability can lead to better ROI over time.
- Hidden Costs: Consider ongoing maintenance, updates, and potential need for specialized staff.
Buying an Off-the-Shelf Solution:
- Initial Investment: Lower upfront costs with faster time-to-market.
- Long-term Value: Potential limitations in scalability and customization may lead to higher costs or reduced effectiveness over time.
- Hidden Costs: Be aware of licensing fees, integration costs, and potential charges for advanced features or increased usage.
While building a custom RMN on Salesforce may have higher initial costs, the long-term benefits of flexibility, scalability, and integration often outweigh the upfront investment for many retailers.
Alternative Platforms for Building RMNs
While this post focuses on Salesforce as a robust platform for building RMNs, it’s worth noting that other options exist in the market. Some alternatives include:
- Adobe Experience Cloud: Offers strong capabilities in customer data management and personalization.
- Google Cloud Platform: Provides powerful data analytics and machine learning capabilities.
- Amazon Web Services (AWS): Offers a wide range of services that can be used to build a custom RMN.
- Microsoft Azure: Provides a comprehensive set of cloud services for building and managing applications.
Each platform has its strengths, and the choice depends on factors such as existing technology stack, specific business needs, and in-house expertise. However, for retailers already invested in the Salesforce ecosystem, leveraging this familiar platform often provides the most seamless path to building a custom RMN.
A Future-Proof Investment: Why Investing in Your Own Platform Pays Off
Retailers that choose to build their RMN on a platform like Salesforce aren’t just investing in current capabilities—they’re investing in their future growth. The consistent innovation and updates provided by Salesforce mean that as new technologies and advertising opportunities arise, retailers can integrate these advancements without needing to overhaul their infrastructure.
Furthermore, building on a single platform reduces complexity, minimizes the need for third-party vendors, and ensures that all systems work together seamlessly. This integration not only simplifies operations but also enables faster, more effective decision-making, positioning the RMN as a core revenue driver.
Embrace the Opportunity for Growth
The evolution of retail media networks represents a significant opportunity for retailers to diversify their revenue streams, deepen customer relationships, and become media platforms in their own right. Building an RMN offers unmatched control, scalability, and the ability to monetize customer insights effectively.
For retailers already using Salesforce products, leveraging this familiar and powerful platform to build an RMN ensures security, integration, and the flexibility needed for long-term success. By investing in a custom solution, retailers not only future-proof their business but also create a valuable asset that benefits both customers and advertising partners.
Building Trust Starts With A Conversation.
At V2 Strategic Advisors, our two decades of experience with Salesforce solutions and RMN strategy uniquely position us to guide your organization through building a powerful retail media network. Whether you’re deciding to build or buy, partnering with V2 ensures that your RMN is competitive, scalable, and profitable. By leveraging our expertise, you can confidently build on a stable, secure Salesforce platform, unlocking new revenue streams and gaining a competitive edge in the evolving retail media landscape. The time to act is now—let’s build your future together.
