How Retail Media Networks Are Monetizing the Aisle
In the age of omnichannel retail, the physical store shelf has become a powerful media asset. Retail media networks (RMNs) – once focused primarily on digital advertising – are now extending their influence into brick-and-mortar environments.
Merchandising, traditionally centered on product placement and promotion, is being reimagined as a premium ad vehicle with real-time analytics, brand bidding and integrated campaigns.
The Rise of In-Store Retail Media
Retailers like Walmart, Target and Kroger are expanding their retail media strategies into in-store environments, transforming endcaps, shelf blades and even freezer doors into monetized spaces. These displays now serve dual purposes: merchandising products and delivering targeted messaging to high-intent shoppers.
Walmart Connect is actively integrating in-store screens and shelf-edge digital signage to complement its digital ad offerings, creating seamless online-to-offline brand storytelling.
Digital Shelf Meets Physical Shelf
As retail media budgets increase, brands are demanding more integrated omnichannel strategies. In-store merchandising is no longer just a visual execution but also a strategic ad placement opportunity that can be tracked, optimized and scaled.
Through partnerships with technology providers, retailers can measure foot traffic, dwell time and even conversion uplift from in-store displays. This has introduced auction-based systems where CPG brands compete for high-visibility shelf space, similar to programmatic digital ads.
The Role of Data and Analytics
Access to first-party shopper data is enabling more personalized merchandising experiences. Brands can target promotions down to the store level, tailoring endcaps and signage based on local demographics and purchase behavior. The result is merchandising that is smarter, more effective and more aligned with campaign ROI.
Implications for Merchandising Teams
Traditional roles in category management and visual merchandising are evolving. Teams must now collaborate with media buyers, ad ops and data scientists. Merchandising strategy meetings now include discussions about impressions, CPMs and attribution.
Looking Ahead
As physical stores become increasingly digitized, the monetization of merchandising will accelerate. For suppliers, the challenge and opportunity lie in crafting omnichannel campaigns that connect the aisle to the algorithm. For retailers, it is about maintaining relevance, driving revenue and leveraging their store footprint as a high-value media channel.
