How Retail Media is Reshaping Customer Engagement

Imagine browsing an online store that anticipates what you want and places it front and center. That’s the power of retail media: first-hand insights that connect brands with customers at the perfect moment.

In an episode of Revenue Boost podcast, Mike Feldman, head of Retail Media at VaynerMedia. He covered how brands can leverage retail media to drive revenue and maximize customer engagement by tapping into one of the fastest-growing areas in digital marketing.

In this article, let’s explore how retail media is poised to reshape customer engagement and drive measurable results at every stage of the buyer’s journey.

What is Retail Media, and Why Is It Transforming Advertising?

Retail media refers to the advertising ecosystem on retailer platforms like Amazon, Walmart, and Target, where brands can reach customers directly as they shop. What sets retail media apart is its use of first-party data—data collected directly from consumer behavior on retailer sites, like browsing and purchase history. This data is far more precise and privacy-compliant than traditional third-party tracking methods, especially as online privacy regulations grow stricter.

Retail media provides brands with unique insights into consumer preferences, allowing them to target shoppers with highly relevant ads at critical points in their buying journey. Feldman, who leads retail media at VaynerMedia, describes this data advantage as a “game-changer,” emphasizing that brands using retail media can reach customers with precision and transparency that most digital channels can’t offer.

Retail Media’s Data-First Approach

The data-first nature of retail media offers brands a more focused, cost-effective way to connect with consumers. Instead of casting a wide net, retail media allows brands to narrow their reach to audiences with demonstrated purchase intent. As Feldman notes, brands on platforms like Amazon can tap into powerful tools like Amazon Marketing Cloud, which provides detailed insights into customer behavior, including post-view actions. With this level of data, brands can track how their ads influence customers from the moment of exposure to purchase.

Amazon Marketing Cloud acts as a “data clean room,” enabling brands to examine ad performance in a secure, privacy-compliant setting. Feldman highlights how Amazon’s approach lets brands analyze patterns and refine ad spending to maximize returns. This transparency is invaluable in today’s landscape, where marketers are under pressure to show measurable results for every ad dollar spent.

Retail media, therefore, goes beyond simple brand awareness; it drives tangible, conversion-focused outcomes. For marketers prioritizing return on ad spend (ROAS), retail media’s data-driven approach is an unparalleled advantage, helping brands optimize their marketing efforts down to the granular level.

Using Creative Content and Social Insights for Brand Differentiation

While sponsored product ads are a retail media staple, they aren’t a long-term strategy on their own. Feldman stresses the importance of diversifying ad formats to engage customers more deeply and differentiate brands. He suggests using creative content and social media insights to refine retail media ads, making them more relevant to customers’ interests and cultural trends.

Take TikTok’s “Content Gap” tool as an example, which Feldman discusses on the podcast. This tool identifies content themes that are in high demand but have limited supply on the platform. By analyzing these trends, brands can shape retail media ads to address consumer interests in real-time. For instance, a brand that sees high demand for “frizzy hair solutions” on TikTok could incorporate this insight into Amazon’s product descriptions or video ads, making its messaging more relevant and appealing to potential buyers.

At VaynerMedia, Feldman applies a high-volume creative testing model to retail media, where they experiment with multiple creative versions to see what resonates most. This approach helps brands adapt quickly, refining ads based on fast, actionable feedback. With creative, targeted content informed by social insights, brands can stand out in crowded marketplaces and engage customers on a more personal level.

Emerging Tools and Trends

The next wave of retail media will be defined by advanced tools and the integration of retail and social media data. Amazon Marketing Cloud is leading the charge by allowing brands to access unprecedented insights into the customer journey. Feldman describes it as a breakthrough tool, providing brands with data to understand which messages resonate with which audiences, and what drives conversions in a way traditional digital ads can’t.

Another significant trend is the potential integration of retail media with social media platforms. For instance, Feldman mentions that Kroger is exploring partnerships with Meta (formerly Facebook). Such partnerships would allow brands to combine the high purchase intent of retail media with the broad reach and engagement of social media. Imagine creating highly specific audience segments based on shopping behavior, then using that data to deliver tailored ads across both retail and social channels. This convergence would allow marketers to drive engagement on social platforms while pushing customers toward purchase on retail sites.

Feldman also anticipates greater industry consolidation among retail media networks. Smaller players may band together or partner with larger platforms to stay competitive. As the industry grows, more robust, interoperable data solutions will emerge, enabling brands to track and optimize campaigns across platforms more seamlessly.

Data-Driven Future for Customer Engagement

Retail media is far more than a new advertising channel—it’s a data-rich strategy that reaches customers when they’re most likely to buy. By embracing retail media’s first-party data, creative formats, and advanced tools like Amazon Marketing Cloud, brands can build stronger connections with customers and drive measurable growth.

For marketers ready to shift from broad awareness to precise, impactful engagement, retail media is the future. Start leveraging this powerful channel today to optimize every stage of the customer journey.

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