This article was compiled with the help of generative AI based on data and analysis that is original to EMARKETER.

"Retail media could have a key role to continue driving growth for advertisers which sell products through retail," said Jonathan Fasano, business development director at Walmart Connect Mexico and Central America, during a recent EMARKETER Summit on commerce media.

As marketers grapple with unpredictable tariffs, retail media networks (RMNs) are emerging as an important channel for brands seeking measurable returns on their advertising investments.

Retail media proves resilient

With increasing tariffs and margin pressures, brands are scrutinizing their media investments more carefully than ever. RMNs are positioned well to succeed during this economic uncertainty.

• "If you as a brand manager or budget decision maker want to invest in the most accurate way, retail media can provide you with multiple lower funnel KPIs like ROAS, advertising cost of sales (ACOS), new-to-brand buyers, and many others that will bring to you the most exact view about how your media is driving results," said Fasano.
• This accountability has become retail media's strongest asset, even as networks invest heavily in expanding their upper-funnel capabilities.
• “Advertisers will look to more accountable and ROI-driven channels,” said Gabe Patton, senior vice president of sales engineering at Infillion, making RMNs a “very compelling solution as they offer highly measurable and inclusive attribution that links exposure directly to in-store and online sales.”

First-party data evolution

The strategic use of first-party data will remain central to retail media's value proposition in the years ahead.

"First-party data will become the backbone of competitive strategies," Patton said. "Demand-side platforms (DSPs) deeply integrated with retailers' authenticated audiences and shopping behaviors are going to enable brands to reach consumers with more precision targeting."

• Latin American markets are still in the early stages of first-party data utilization compared to the US, according to Fasano.
• "Today, we only use the first-party data from the retailer, and we don't merge or allow the brands and agencies to merge their data points with the retail," he said. "This needs to evolve to data clean rooms and audience manager environments, where the retail pushes their first-party data and brings the capability to brands, agencies, and third-party data to merge in a more consolidated and robust collaborative environment."

The ultimate goal of these data advancements is to enable more targeted media that delivers better results while reducing wasted impressions.

AI and machine learning drive optimization

AI gives RMNs the ability to deliver results efficiently.

Fasano shared a success story from a Mexican milk brand that ran two different campaigns using identical audience segments from Walmart's first-party data.

• One campaign focused on branding objectives while the other targeted ROI.
• "The machine learning algorithm selected the best performing media for each campaign and increased or reduced the audience population to improve results," he said.
• The branding campaign achieved a 4x on ROAS, while the ROI-focused campaign delivered an impressive 13-14x return.

Looking ahead

The future of retail media will likely be shaped by technological innovations that bridge the digital-physical divide.

• "We are developing that with tons of investments to use computer vision sensors throughout the main file to track shopper activity, to know how much time and engagement shoppers have with end caps or screens, and to connect that media information with the sell-out," said Fasano.
• This technology enables closed-loop attribution that has been challenging to achieve in physical retail environments.

Meanwhile, Infillion is expanding into premium media channels like connected TV (CTV) and digital out-of-home, and developing shoppable media formats and AI-powered forecasting tools.

Watch the full session

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