Why Retail Media Is Often Seen as “Just Online Ads”
When people hear retail media, they usually think of sponsored products on Amazon or a grocery app.
In many conversations, retail media is reduced to:
- product ads in search results
- banners on category pages
- a few display formats powered by retailer data
That view is incomplete.
Retail media is not defined by where the ad appears. It is defined by who owns the relationship with the shopper and which data powers the activation.
If the campaign:
- uses retailer environments (website, app, store, pick-up area), or
- relies on retailer first-party data to reach audiences and measure sales,
then you are, in practice, working with retail media – whether the touchpoint is a search result, a CTV ad or a digital screen in a supermarket.
This article explains why retail media is not only online. It breaks down how on-site, off-site and in-store formats work, and gives practical examples you can use when planning budgets and briefs.
What Actually Defines Retail Media
Before mapping formats, it helps to be clear on the definition.
Retail media combines three elements:
- Retailer-owned touchpoints
These include e-commerce sites, mobile apps, newsletters, in-store screens, shelf labels and even pick-up lockers. - Retailer first-party data
Logged-in users, loyalty cards, purchase history, browsing behaviour and store visits provide rich signals about what shoppers buy and how often they come back. - Advertising inventory and services
Retailers package their touchpoints and data into media products: self-serve sponsored products, managed display, CTV deals, in-store audio, and more.
Whenever these three elements intersect, you are inside the retail media universe.
From there, the question becomes: where does the impression happen?
- On-site (retailer’s digital properties)
- Off-site (external digital properties, but with retailer data)
- In-store (physical environment, sometimes enhanced by digital tech)
Let’s walk through each level.
On-Site Retail Media: Ads Inside the Retailer Environment
On-site retail media lives directly on the retailer’s website or app.
It captures intent when the shopper is already browsing, searching or buying.
Search and Product Formats
The most visible part of retail media is built around search:
- Sponsored products
Paid listings that appear in search results, browse pages and recommendation carousels. They mimic organic tiles but carry a “sponsored” label.
Example: a shopper types “dishwasher tablets”; the first rows show paid placements from two leading brands. - Sponsored brands or headline ads
Units at the top or middle of search results. They feature brand logo, tagline and a curated selection of SKUs.
Example: a pet brand owns the top banner for “dry dog food” with three products leading to a brand landing page. - Sponsored display / product detail placements
Ads that show on product pages, carts and category hubs, either to cross-sell complements or conquest competitors.
Example: on a competitor’s shampoo PDP, a small module highlights your anti-dandruff line with customer ratings.
These formats tend to be auction-based, self-served and performance-oriented. They are usually the first step in any retail media plan.
On-Site Display, Native and Video
Beyond search, retailers monetise every high-traffic surface:
- Home page and category banners
Hero images and mid-page modules on the home screen, “Beauty”, “Electronics”, “Snacks”, and other hubs. They are ideal for launches, seasonal pushes and brand building. - Native recommendation units
“Sponsored” carousels blended into the shopping experience. Think “Top picks in skincare”, “You might also like” or “Inspired by your browsing”. They are built from the same components as organic recommendations, but prioritise paid partners. - On-site video units
Short videos embedded in banners, category pages or PDPs. They often autoplay muted and highlight usage, ingredients or benefits.
Practical scenario:
A coffee brand launches aluminium-free capsules. For four weeks, shoppers see:
- a home page banner during breakfast hours,
- a video unit on the capsules category, and
- sponsored products on queries like “espresso pods”.
All three layers work together to drive discovery, consideration and conversion.
CRM, Email and App Messaging
Retailers also sell access to their owned communication channels:
- sponsored sections in weekly newsletters
- dedicated emails to loyalty segments
- in-app messages and push notifications for key cohorts
The formats look like classic CRM touchpoints, but the mindset is still retail media: you are renting targeting and inventory from the retailer.
Off-Site Retail Media: Retailer Data Beyond the Storefront
Off-site retail media moves the impression outside the retailer’s properties, while keeping retailer data and measurement at the core.
Programmatic Display and Online Video
Retail media networks extend their audiences into the open web through DSPs and SSPs.
Typical formats include:
- standard display banners
- rich media units
- online video pre-roll or in-feed placements
Targeting is built on segments such as:
- “buyers of premium cat food in the last 90 days”
- “shoppers who viewed gaming laptops but did not purchase”
- “lapsed buyers of baby wipes”
A pet brand can, for example, run video ads on news sites, reaching dog owners identified through a supermarket’s loyalty programme. Later, the retailer attributes in-store and online sales back to the campaign.
Connected TV and Streaming
Many retailers now offer CTV and streaming inventory:
- ads shown on smart TVs and streaming platforms
- audience targeting based on retailer data
- measurement tied to online and offline sales
A household cleaner brand might reach “families with frequent cleaning product purchases” via CTV spots during prime-time shows. Performance is then evaluated through uplift in both e-commerce and store sales.
Social and Search Extensions
In some cases, retailers allow brands to extend retailer audiences into social and search platforms:
- Facebook and Instagram campaigns targeting retailer segments
- TikTok activations using “grocery shoppers under 35”
- Google Display or YouTube formats with retailer data overlays
You are technically buying media from Meta or Google. Yet, the precision and closed-loop reporting come from the retailer. That combination still falls under retail media, even if the impression does not happen on the retailer’s site.
In-Store Retail Media: When Retail Media Leaves the Screen
The most underrated part of retail media is completely offline.
Physical stores are high-value media environments. They combine traffic, attention and purchase intent at the exact moment of decision. Retailers are increasingly integrating in-store inventory into their retail media offers.
Digital Screens and Signage
The most visible formats are digital out-of-home surfaces inside the store:
- entrance screens
- end-cap and aisle-level screens
- digital posters near checkouts
- shelf-edge displays and electronic shelf labels with promotional loops
A snacks brand, for instance, might book digital end-caps in the crisps aisle plus an entrance screen during the “back to school” window. Messaging is synchronised with on-site banners and sponsored products, creating a consistent journey from couch to shelf.
In-Store Audio
Retailers often operate their own in-store radio:
- short audio spots played every few minutes
- dayparting options (morning vs evening)
- store clustering by region or format
A breakfast cereal brand could run 15-second spots during morning hours, timed with promotional price cuts and in-aisle displays.
POS Materials and Physical Media
Not all in-store retail media is digital. Traditional POS is now often sold through the same retail media teams:
- shelf-talkers and wobblers
- floor decals and directional footprints
- branded freezer wraps
- trolley and basket ads
- static posters near service counters or exits
These assets may not use digital targeting, but they rely on the store network and shopper flows that only the retailer controls. When they are planned and sold together with on-site and off-site inventory, they form an integral part of the retail media package.
Coupons, Receipts and Loyalty Magazines
Finally, there are triggered formats at the point of sale:
- coupons printed at checkout or stored in the loyalty app
- ads or QR codes on receipts
- brand pages in loyalty magazines and catalogues
Imagine a pet food brand targeting economy shoppers with “upgrade” coupons printed after they buy value kibble. The campaign is configured in the retailer’s media system and measured with the same sales data used for digital activations.
Hybrid Retail Media: Connecting Online and Offline
Some of the most interesting use cases sit between digital and physical environments.
QR Codes and Shoppable POS
Brands can add QR codes to shelf-talkers or displays, linking to:
- a detailed PDP
- a comparison guide
- a shoppable landing page or subscription offer
Shoppers scan at the shelf, research on their phone, and either buy in-store, complete a click-and-collect order or save the item for their next online shop.
Click-and-Collect, Lockers and Pick-Up Points
Pick-up locations are also retail media assets:
- branding on lockers and collection desks
- inserts and samples in pick-up bags
- ads in collection confirmation emails and app notifications
Retailers know exactly which customers use these services and which baskets they collect, enabling precise audience building and post-campaign analysis.
DOOH Around Stores with Retailer Data
Retailers sometimes partner with DOOH networks to activate screens in:
- malls and retail parks
- petrol stations
- public transport hubs near stores
Targeting and reporting are enriched with store visit and purchase data. The screen itself belongs to an external partner, but the planning logic is driven by the retailer’s understanding of its shoppers.
What This Means for Planning and Budgets
If retail media is not only online, then treating it as a narrow “Amazon search” line item is risky.
From Channel to System
Retail media behaves less like a single channel and more like a system that follows the shopper:
- on-site formats capture intent when people search or browse,
- off-site formats build reach and reactivate audiences,
- in-store formats influence the final decision at the shelf.
Planning should start from the shopper journey, not from the media product catalogue.
Integrated Objectives and Measurement
A launch plan might combine:
- on-site sponsored products for core keywords,
- CTV or online video to build awareness in priority segments,
- in-store screens and POS during the launch window,
- coupons tied to loyalty IDs to track trial and repeat.
Instead of isolated reports, the retailer can then provide omnichannel measurement, attributing uplift across online and offline sales.
New Collaboration Models
This broader view also reshapes internal collaboration:
- digital marketing teams bring experience in performance media,
- shopper and trade marketing own in-store visibility and promotions,
- brand teams ensure creative consistency.
Retail media becomes the intersection where these disciplines meet, rather than a sub-tab of performance marketing.
Conclusion: Retail Media Is an Omnichannel Layer, Not a Place
So, is retail media only online?
No. Retail media is an omnichannel advertising layer built on top of retailer relationships and data.
It stretches from search ads on marketplace results pages to CTV spots, in-store screens, coupons and branded pick-up lockers.
What matters is not the device or the physical location of the impression.
What matters is:
- the retailer’s role in providing inventory and data, and
- the ability to link exposure to real sales, both online and offline.
Brands that understand this shift stop thinking in terms of “digital vs in-store”.
They design retail media programmes that follow the shopper end-to-end, create consistent experiences and measure impact where it counts: at the till.
Frequently Asked Questions: Is Retail Media Only Online?
Not exactly. E-commerce advertising usually refers to digital ads on online stores. Retail media is broader. It includes those ads, but also off-site activations using retailer data and in-store formats such as screens, POS materials and coupons.
Yes, when they are planned and sold as part of the retailer’s media offering or linked to retailer data. Digital screens, in-store audio, branded displays and targeted coupons all fall under retail media when they use the retailer’s assets and measurement.
On-site sponsored products and sponsored brands are usually the most directly tied to conversion. They capture demand close to the point of purchase. However, combining them with off-site remarketing or targeted coupons can increase incremental sales, especially for launches and premium products.
Awareness can be driven through home page banners, category takeovers, CTV, online video, in-store screens and magazines. These formats often sit at the top or middle of the funnel but still benefit from retailer targeting and the ability to attribute sales over time.
There is no universal formula. A mature brand might keep most investment in on-site search and use in-store media tactically around key events. A challenger brand might spend more on off-site and CTV to build reach before scaling search. The important step is to plan all three layers together, with shared objectives and measurement.
Retail Media & Commerce Growth Leader with 8+ years across Amazon and leading marketplaces. I design full-funnel strategy, governance, and measurement—building operating models and developing teams to scale performance across markets. I share practical frameworks and tools for sustainable growth.
