Retail media has transformed from traditional in-store promotions to sophisticated digital advertising platforms that dominate US ad spend. By 2026, more than $74 billion ad dollars are expected to go toward retail media investments.
But for the industry to continue its explosive growth, partnerships that lead to innovation and results will be essential. US retail leaders see data collaboration as a win-win: 53% want to provide advertisers with more transparency into performance data, and 52% see the value of data collaboration in building high-value media networks.
In a recent webinar, I sat down with expert guests Drew Frost, Director, Strategy, Digital Partnerships at Walgreens Advertising Group (WAG), and Zeid Khater, Analyst at Forrester Research, to discuss why data collaboration is crucial to retail media success and how WAG partners with LiveRamp to make its media network growth a reality.
What are key steps to growing a retail media network?
Retail media networks (RMNs) require rich customer data to provide brands with targeted advertising opportunities, measurable outcomes, and strategies for campaign optimization. The ability to responsibly collaborate data with partners for the most accurate, complete customer view is a main driver for media network success. Data collaboration is critical to improve customer experiences and loyalty, data quality, data ethics, and more.
Building an RMN is similar to building a house, Frost said. First, you have to build your data foundation by:
1. Harnessing your first-party data
With a connected set of first-party data, RMNs can begin to unlock deeper customer insights for personalized ad experiences and deliver more value to advertisers. By better understanding customer behaviors and preferences, brands can craft targeted campaigns that resonate with the right audiences on every channel.
WAG is increasing access to its first-party data at speed, scaling audience insights, and offering more transparency and control to advertisers. The LiveRamp Clean Room is extending the efficiency of WAG’s first-party data solutions, enabling advertisers to improve customer personalization, access data at scale, and deliver real-time campaign performance insights.
“This data in any shape or form – fragmented or whole – is really the foundation to that house,” Frost said. “From there, your partnerships become the baseline of your infrastructure. They’re your water, your electricity, and everything that makes a house a home.”
2. Building strategic tech and data partnerships
Khater explained that a top challenge for RMNs is finding the right partners and technology to connect data across platforms, channels, and brand partners while keeping customer privacy a priority. As advertisers focus their efforts and budgets on omnichannel campaigns, they expect RMNs to have the capability to integrate with other channels where consumers spend time. This isn’t a simple task, but it’s worth the results. Media networks that connect customer insights and campaign results across channels have the data to prove and grow advertiser ROI – and earn more of their media investments.
Connectivity across the ecosystem enables advertisers to activate audiences and data at greater speed and scale across programmatic, walled garden, CTV, social, search, and buy- and sell-side platforms. With LiveRamp, WAG connects with more than 101 million myWalgreens loyalty members across channels and billions of signals, powering the media network to unlock new insights, accelerate performance, and drive business growth.
“The right partner is the first step, and the maker or breaker, of the success of a data collaboration effort,” Khater confirmed. One of the top qualities in a partner, according to more than half of retail leaders, is dedicated expertise in data ethics and consumer privacy.
3. Prioritizing customer privacy and personalization
Shoppers crave relatable, personalized ad experiences, but respecting customer privacy and adhering to regulations is paramount. With a data collaboration partner that connects customer information in a trustworthy way, RMNs can evolve and expand personalized ad and targeting opportunities for advertisers. The right partner enhances interoperability, flexibility, and data governance to minimize the movement of data while collaborating with partners.
“Delivering personalized, privacy-forward experiences to customers across channels is the ultimate endgame of having a data collaboration platform,” Khater said. “Ultimately, you do want to drive customer experiences.”
Most of all, RMNs want to create customer experiences backed by trust that also drive performance.
4. Measuring ad success with advanced analytics
Beyond customer privacy and personalization capabilities, advertisers want to work with media networks that have robust analytics for measuring campaign performance everywhere. Frost said implementing a measurement strategy that spans across channels to provide real-time insights empowers WAG and brand partners to meet their shared campaign and ROI goals.
Frost added that advanced campaign insights and real-time optimization isn’t possible without a data collaboration partner who helps you move and learn fast. “In this ever-changing, ever-growing space, speed is going to help us all.”
WAG leverages the LiveRamp Clean Room to make granular campaign measurement across offsite publishers and walled gardens possible for its advertisers. Ultimately, this leads to better optimizations, more accurate measurement, and stronger performance for the brands.
“It truly is an art and a science,” Frost said. “When relationships become more conversational and goal-oriented, you can have conversations with brands and say, this is what’s possible and this is how to optimize and find the best path forward.”
If you want a deeper look at the top data collaboration strategies WAG uses to drive its media network success, watch the full conversation here.
Learn more about LiveRamp and WAG’s partnership here.
