There are now more than 80 retail media networks (RMNs) in the US. The volume of RMNs, combined with the dominance of Amazon and other established competitors, makes it challenging for new and niche RMNs to capture share.

Here are five key challenges growing RMNs face when attempting to scale.

1. Measurement headaches without standardization

More than half (55%) of US advertisers cite a lack of standardization across platforms as their biggest retail media challenge, per the Association of National Advertisers (ANA).

• There are no uniform metrics for impressions, viewability, or ROAS across the commerce media industry; each network defines its own standards.
• Brands and agencies must navigate disparate dashboards and reporting, making cross-retailer buys more difficult.

The Interactive Advertising Bureau (IAB) and Media Rating Council (MRC) released guidelines for standardizing retail media measurement in January 2024, but retailers have been slow to adopt these guidelines. In lieu of standardization, ad buyers often work with third parties to compare metrics across RMNs.

RMNs can overcome this standardization headache with increased transparency. “The most helpful adjustment on measurement will be transparency around data and methodologies, rather than rigid adherence to a specific set of best practices,” wrote analyst Sara Marzano in our “The State of Measurement in Retail Media” report.

2. Attribution challenges across online and in-store

Attribution challenges come hand-in-hand with measurement ones. The promise of closed-loop attribution within RMNs has not been realized, as shoppers move between online and offline when researching and making purchases.

• Over 3 in 10 shoppers research online, but buy in-store, per EMARKETER and impact.com, making it difficult to track which ads influenced purchase.
• Newer RMNs like Costco’s have leaned into their in-store ad potential, but ROAS may be difficult to prove in this environment, making advertisers slow to increase spend.

Off-site advertisements further complicate these attribution challenges, with 49% of US brands and agencies citing difficulty in accurate attribution as an obstacle they face when integrating off-site media into their retail media strategies, per Skai and the Path to Purchase Institute.

RMNs can remedy this attribution challenge by leaning into in-store measurement such as foot traffic, or emphasizing mobile app use in stores to track omnichannel purchase behaviors.

3. Limited inventory expansion

RMNs are limited in on-site ad inventory; there are only so many search and display ads that can go on a website before they harm customer experience.

Scaling RMNs often prioritize volume over quality, leading to:

• Repetitive or poorly placed ads on product pages
• Lack of premium ad formats (video, branded content)
• Limited high-intent off-site inventory

Some 70% of retail media decision-makers worldwide say they are specifically looking for support for multiple ad formats, per February data from Forrester and Mirakl.

Expanding off-site can increase available inventory. RMNs are doing this via connected TV or publisher partnerships, like the one between Best Buy and CNET. RMNs can also expand in-store advertising, but this comes with the aforementioned attribution challenges.

4. Customer concerns about privacy

Privacy can become a barrier to scaling both from a regulatory perspective and from a consumer comfort perspective.

• 74% of retail media decision-makers are looking for strong data and security compliance, per Forrester and Mirakl.
• 54% of US adults say personalized ads freak them out, according to recent data from YouGov.
• 56% are uncomfortable with companies using online behavior to personalize advertising, per YouGov.

Commerce media in particular is affected by consumer weariness, with 42% of US adults saying they are freaked out by ads based on purchasing history, according to YouGov.

RMNs need to find ways to make consumers feel included and feel that ads and promotions complement their purchase journey rather than distracting from it in order to calm privacy concerns. Platforms should also take into account how their business may impact consumer perspective; consumers may be more open to a retailer using their purchase data for personalization than a financial institution’s media platform doing so.

5. Difficulty differentiating in a crowded market

For all RMNs that aren’t Amazon, it is imperative to find ways to stand out, whether through data quality, unique audience, or niche product offerings.

Walmart Connect stands out with first-party data scale, while Ulta Beauty leverages unique loyalty program insights.

If your RMN doesn’t have a differentiator, find one. Per the IAB, advertisers are looking for:

• The ability to reach new/incremental audiences (55%)
• The ability to leverage retailers’ first-party data (52%)
• Demonstrably strong performance (48%)

This was originally featured in the Retail Media Weekly newsletter. For more marketing insights, statistics, and trends, subscribe here.