Building a Retail Media Business: Challenges to Overcome and Solutions to Employ

Retail media is one of the fastest-growing advertising channels. Estimates from eMarketer anticipate that U.S. retail media ad spending will increase by 88.5 percent from 2024 to 2028. This growth will bring significant investment from retailers as they expand their marketplace offerings.

However, unchecked excitement could lead to a rushed retail media deployment that fails to deliver a meaningful return on investment. By carefully identifying and addressing several obstacles, retailers can build a robust media business that contributes to their bottom line.

Data, Technology and Organizational Challenges

Retailers have an abundance of data, but deriving value from it is far more complex than for the average digital publisher. To succeed, retailers must build descriptive audience segments that outline purchase history, page clicks, cart abandonment, and other behavioral insights. More importantly, they need predictive models to anticipate future shopper behavior — requiring access to multiple data sources.

From a technology perspective, launching a retail media business can be intimidating. The retail media tech landscape is evolving rapidly, with new companies introducing solutions and platforms that add to the complexity. Furthermore, these technologies often require integration with a retailer’s existing corporate infrastructure, demanding a customized approach for each business.

Beyond technology, retailers face significant organizational hurdles in developing a fully functioning retail media network. Many will need to build an entirely new business unit, recruit specialized talent, and integrate operations without disrupting retail performance. The most significant challenge is ensuring the media business thrives without negatively impacting retail operations — or being stifled by management structures.

Related story: What's in Store for Retail Media Networks in 2025

Key Aspects of a Retail Media Solution

The first step in overcoming these challenges is conducting structured, in-depth conversations with all internal and external stakeholders. This includes teams across commercial operations, data science, finance, legal and data governance, as well as external partners such as agencies and brands.

Once a strong foundation is in place, retailers can determine the technology strategy that best suits their business, whether that means buying, co-developing with a partner, or building proprietary platforms. If working with a partner, it’s essential to choose one with deep expertise in integrations to reduce the need for constant retraining and new hires. The right partner ensures seamless synergy across the retail media ecosystem, preventing future headaches.

Additionally, automation is crucial for scaling retail media offerings. Automating repetitive tasks minimizes the need for large, costly teams; reduces employee burnout; and helps retailers focus on strategy and growth rather than day-to-day manual operations.

Becoming a Market Leader

Retail media is evolving rapidly, and retailers must move quickly and adapt to stay ahead. The industry leaders of tomorrow will not only overcome these challenges but will also:

• differentiate themselves in a competitive market;
• scale operations efficiently without overwhelming resources; and
• leverage a first-mover advantage or align closely with supplier needs.

By addressing these foundational challenges, retailers can position themselves as market leaders, driving both innovation and profitability in the rapidly growing retail media landscape.

Diana Abebrese is global retail media lead for EPAM Systems, Inc., a digital transformation services and product engineering company.