Retail media networks (RMNs) are moving beyond traditional return on ad spend metrics to prove business impact through closed-loop attribution that connects media exposure to actual purchases, both online and in-store.

"We have gotten very good at measuring that the campaign was active, and we have started to mistake that for whether a brand is growing," said Shannon Hartmann, group director of media strategy and activation at Kroger Precision Marketing, on a recent Mars United Commerce webinar.

The industry now emphasizes long-term growth indicators like household penetration, loyalty, repeat purchases, and category share gains versus competitors. Networks are making performance data accessible through self-service platforms rather than managed service reporting, giving brands real-time visibility into campaign effectiveness.

"Advertisers are really pushing networks, asking the harder questions, making sure that their investments are driving the right level of payoff," said Parbinder Dhariwal, VP and general manager at CVS Media Exchange. "The guiding principles from a retail media perspective is thinking about transparency, thinking about access, but also thinking about how your network drives scale."

While individual campaign metrics remain important, brands increasingly demand proof that retail media investments contribute to overall business objectives at each retailer. This evolution requires networks to integrate point-of-sale data, loyalty information, and in-store exposure tracking into unified measurement frameworks.

CVS Media Exchange recently launched its Core IQ platform to address these needs, using AI to enable faster measurement reporting and real-time campaign optimization based on how consumers respond to messages.

Off-site expansion accelerates as networks chase full-funnel impact

RMNs are aggressively expanding beyond their owned websites and apps through partnerships with major publishers and social platforms, seeking to reach shoppers throughout the purchase journey.

Key developments include Kroger Precision Marketing's integration with YouTube through DV360, CVS Media Exchange's partnerships with Pinterest and Reddit, and widespread adoption of streaming audio and connected TV (CTV) capabilities. Networks are also investing heavily in in-store digital screens and connected environments to create measurable touchpoints at the physical shelf.

"The idea of off-site isn't new, but the way that the partnerships are being struck, the way that it's more of a data collaboration partnership than anything else. I think that's really the key unlocking and key evolution in this space," said Mark Williamson, AVP of retail media for Costco retail media.

The off-site push addresses a fundamental limitation: On-site activation alone cannot close brand opportunity gaps. Different retailers fulfill different shopper need states: a Walmart shopper on a stock-up trip has different needs than a Stop & Shop shopper making frequent small trips, or a Target shopper seeking exclusive products.

Measurement capabilities are following off-site expansion, with networks implementing conversion APIs that tie exposures on external platforms back to in-store and online purchases. This closed-loop attribution across channels differentiates retail media from traditional digital advertising.

AI drives operational efficiency, not yet monetization

RMNs are currently deploying artificial intelligence for operational improvements rather than customer-facing monetization opportunities, focusing on reducing manual processes and improving media effectiveness.

Kroger's proprietary Precision Bid algorithm adjusts bids in real time based on signals like frequency and shopper intent, reducing manual optimization time by two to three hours per week per campaign while improving incremental return.

"AI is already embedded in how we optimize our media today. It's not necessarily a future promise for us," Hartmann said. "Precision Bid is reducing the manual hands-on keyboard lift, but then providing better results at the same time."

CVS Media Exchange's Core IQ platform uses AI to enable faster media planning, real-time audience optimization, and accelerated measurement reporting. The technology allows the network to adjust messaging based on how specific consumer segments respond to campaigns.

While Amazon and Meta have announced plans to monetize AI-powered shopping assistants and search capabilities, most RMNs are taking a cautious approach. Networks are prioritizing data governance and ensuring AI applications deliver genuine value before introducing monetized products. The focus on operational efficiency suggests networks recognize they must first solve fundamental challenges around scale, automation, and self-service capabilities before layering on experimental AI features.

Costco's Williamson noted the retailer will be "very judicious" in AI application, avoiding trendy implementations while exploring opportunities to leverage data faster and more efficiently than manual processes allow.

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