By Kees de Jong
Principal Consultant : AdTech / Media / Retail Media / Talent
Retail Media: In-Housing, Outsourcing, and the Tech Stack puzzle.
The retail media world is booming, and retailers are sitting on a data goldmine! But how do you make the most of it? Two big questions keep popping up: Should you build your retail media operations in-house or outsource? And should you buy your tech or build it yourself? If you’re a retail leader, media pro, or ad tech enthusiast, let’s dive in.
Retail Media’s Wild Ride (and the Challenges)
Retail media has exploded! Dentsu’s 2025 Retail Media Industry Report says it went from an $18.8B business to a massive $54.9B in just four years. More players want in, with Retail Media Networks (RMNs) jumping from 28 in 2020 to 94 today.
But here’s the catch: a lot of focus is on basic ad formats, not the really valuable stuff like data and consumer insights. This might not last, and Dentsu predicts some RMNs will merge or close. The winners will be those who give brands real value and watch their costs.
In-House or Outsource?
Retailers need to decide how to run their retail media. Many think a big consulting firm is the safe bet, but there’s another way.
Why Specialists Often Shine
For building or growing a retail media business, specialist consultants often bring something special:
- Deep Expertise: Retail media is complex. Specialists “live and breathe” data, ad tech, and brand partnerships. They get the details big firms might miss.
- Agility and Fresh Ideas: You need to set up new processes and find new ways to make money. Specialist consultants are often more agile and bring a fresh perspective.
- Focus and ROI: Big firms can have big overheads, which isn’t always great for new retail media ventures. Specialists focus on what drives growth, so you get better value.
- The “Build, Operate, Transfer” Option: Specialists can help you get set up and then hand over the reins when you’re ready to run things in-house.
Buy or Build? The Tech Question
The tech you use is key. Retailers can buy a solution or build it themselves. Building takes a lot of effort, and keeping it up-to-date can be tough with the industry changing so fast.
Dentsu’s report notes that RMNs are moving beyond just media, with 45% of RMNs getting over 40% of their revenue from “non-media solutions”. RMNs are becoming more like “retail audience connectors”. These non-media solutions often boost revenue and profits.
Non-Media Solutions Explained
“Non-media solutions” are the products and services RMNs offer beyond traditional ad placements. They’re about helping brands understand and connect with shoppers, often through valuable first-party data.
For example, imagine a grocery chain with a retail media network.
- Traditional Media Solution: Selling sponsored product ads on its website.
- Non-Media Solution: Offering brands a dashboard with insights into the shopping behavior of customers who bought their products, showing what else they buy, purchase frequency, campaign effectiveness, etc.
This data helps brands refine their strategies and improve customer engagement.
Finding the Right Path
Retailers getting into retail media need a solid plan and strategy. Starting with specialist consultants can give you the expertise and flexibility you need. A “Build, Operate, Transfer” model can help you move to in-house operations later.
For tech, unless you’re a really big retailer, buying a customisable solution is usually smarter. Building your own can be costly and hard to maintain as the landscape keeps changing at a relentless pace.
The Bottom Line
Retail media has huge potential, but you need to make smart choices about in-housing, outsourcing, and tech. By considering specialist consultants and being strategic about tech, retailers can navigate this changing world and make the most of their retail media.
Let’s Chat!
If you’re thinking about retail media and want to talk through these decisions, I’d love to connect and see how we can help.
