The retail industry is witnessing one of the most profound shifts in its revenue model. Traditionally, retailers relied on product margins and store expansion to drive growth. Today, however, a new high-margin revenue stream is reshaping the economics of commerce: Retail Media Networks (RMNs) – the commerce platforms or marketplaces such as Amazon, Flikart, Nykaa, Myntra, Meesho, Blinkit, Zepto, etc. that allow eRetail brands to advertise within their shopping ecosystem, turning customer traffic into a high-margin advertising revenue stream. This model is rapidly turning these platforms into media companies, monetizing their customer data and digital traffic in ways that were previously unimaginable.

Let’s dig more…

Advertising opportunities that these commerce platforms provide to brands within their own digital or physical retail environments, such as marketplaces, websites, apps, or stores, allowing brands to promote their products directly to shoppers who are already browsing or buying.

In simpler terms:

Retail media is when brands pay platforms (also known as commerce retailers) to advertise products inside the retailer’s ecosystem.

This can include advertising formats like:

• Sponsored product listings in search results
• Display banners on category or homepage sections
• Featured product placements on product pages
• Brand stores within marketplaces
• In-app promotions and recommendations
• In-store digital screens and targeted offers

Let’s take a few examples:

• A shoe brand paying Amazon Ads to appear at the top of search results for “running shoes.”
• A fashion brand running sponsored listings on Myntra to boost visibility in a category.
• A brand paying Flipkart Ads for banner placements during sale events.

This advancement makes these platforms powerful because:

• Ads appear when customers are already shopping
• Platforms use first-party shopper data
• Campaigns are highly measurable and performance-driven

This is why many large commerce retailers/platforms are building Retail Media Networks, effectively becoming advertising platforms or media companies in addition to being commerce platforms.

For eRetail brands and retailers alike, retail media is no longer an experimental marketing channel. It is becoming a core growth engine, influencing everything from digital marketing budgets to platform strategy.

According to eMarketer, global retail media platforms advertising spend is expected to cross $179 billion by 2025, accounting for nearly 20% of total digital advertising spend worldwide. Meanwhile, McKinsey estimates retail media margins can reach 70–90%, significantly higher than traditional retail margins, which typically range between 3–5%.

In India and emerging markets, the opportunity is even more pronounced as eCommerce penetration continues to rise and brands increasingly shift their marketing budgets toward high- intent environments. These commerce platforms are no longer just selling products. They are selling attention, data, and conversion opportunities.

The Rise of Retail Media Networks

Retail media networks operate at the intersection of advertising, commerce, and data intelligence.

Instead of relying solely on external platforms like Google or Meta for customer acquisition, retail brands are now investing heavily in advertising within retail ecosystems where shoppers are already browsing and ready to purchase.

A few examples of retail media networks include:

• Amazon Ads
• Walmart Connect
• Flipkart Ads
• Myntra Ads
• Instacart Ads

These platforms allow brands to run sponsored listings, display ads, and personalized promotions directly within shopping environments.

The advantage of retail media lies in its proximity to purchase intent. A consumer searching for “running shoes” on a marketplace is already in a buying mindset. Advertising within that context delivers far higher conversion rates compared to traditional digital advertising channels.

According to the Retail Media Report 2024, retail media ads generate 3–5x higher conversion rates compared to traditional display advertising.

For brands, this creates a powerful incentive to allocate marketing budgets directly within retailer ecosystems. For commerce platforms, it opens the door to a new high-margin revenue stream.

Why Retail Media Is Exploding

Three structural shifts are driving the explosive growth of retail media networks.

1. First-Party Data Advantage

With increasing privacy regulations and the deprecation of third-party cookies, brands are struggling to access reliable customer data. Commerce platforms like marketplaces, however, possess one of the most valuable assets in digital commerce: first-party shopper data.

This includes:

• purchase history
• browsing behavior
• search queries
• demographic insights
• shopping frequency
• price sensitivity

This data allows retailers to offer advertisers highly targeted campaigns based on real purchase behavior rather than inferred interests. According to Boston Consulting Group, retail media platforms leverage customer data to deliver 2–4x higher return on ad spend (ROAS) compared to traditional digital advertising.

2. High-Intent Advertising Environments

Platform ads appear in environments where customers are already considering a purchase. This dramatically increases the effectiveness of advertising campaigns.

For example:

• Sponsored product listings on Amazon
• Promoted product placements on Flipkart
• Featured brand banners on Myntra

According to NielsenIQ, nearly 70% of shoppers click on sponsored products while browsing marketplaces, and many of those clicks convert into purchases. The combination of intent and visibility makes retail media one of the most efficient performance marketing channels available today.

3. Retail Traffic Monetization

Top commerce platforms generate millions of daily visits to their websites and apps. Traditionally, this traffic was monetized primarily through product sales. Retail media introduces a second layer of monetization: advertising revenue.

For instance:

• Amazon generated over $47 billion in advertising revenue in 2023, according to Amazon’s financial reports.
• Walmart’s advertising business exceeded $3.4 billion in 2023.
• Flipkart Ads has rapidly grown into a multi-billion-rupee advertising platform for brands in India.

These figures highlight how retail media is transforming retailers into powerful advertising platforms.

Commerce Platforms Are Becoming Retail Media Companies

The rise of retail media is blurring the line between commerce platforms and advertising platforms. Retailers/platforms now provide brands with a full suite of marketing solutions, including:

• Sponsored product ads
• Display advertising
• Homepage banners
• Video ads
• Search result promotions
• Brand store promotions
• Audience targeting

In essence, platforms are replicating the capabilities of traditional digital advertising platforms within their own ecosystems. This transformation is creating a new business model where advertising revenue becomes as important as product sales.

McKinsey estimates that retail media could contribute up to 25% of operating profit for top commerce platforms in the coming years.

The Marketplace Advertising Ecosystem

Retail media networks operate through a structured advertising ecosystem that allows brands to influence shopper decisions at multiple stages of the purchase journey. Unlike traditional digital advertising, these formats operate within high-intent commerce environments, where consumers are actively searching, comparing, and evaluating products.

This proximity to purchase is one of the key reasons marketplaces have become one of the fastest-growing segments of digital advertising.

According to eMarketer, marketplace platforms are projected to reach $179 billion globally by 2025, accounting for nearly one-fifth of total digital advertising spend. Much of this growth is driven by marketplace advertising formats that enable brands to capture shopper attention directly within the purchase funnel.

Retail media advertising typically falls into four major formats within marketplace ecosystems.

Sponsored Product Listings

Sponsored product listings are the most widely used and highest-performing format within commerce platforms. These ads appear directly within search results and category listings, allowing eCommerce brands to promote products based on keywords or shopper intent signals.

The format closely resembles search engine advertising, where advertisers bid for visibility based on specific keywords or product categories. However, the key difference is that these ads appear within a shopping environment where customers are already evaluating products, significantly increasing the likelihood of conversion.

Platforms such as Amazon Ads, Flipkart Ads, and Myntra Ads heavily rely on sponsored listings as their primary advertising format.

According to Amazon Advertising benchmarks published by Marketplace Pulse, sponsored product listings account for nearly 70% of Amazon’s retail media revenue. These ads consistently deliver strong performance because they integrate seamlessly into the shopping experience.

Industry data also highlights their effectiveness:

• Sponsored product ads can drive conversion rates up to 3–4 times higher than traditional display advertising, according to Retail Media Insights Report 2024.
• Approximately 75% of shoppers on marketplaces never move beyond the first page of search results, making top placement within listings critical for product visibility.

For brands competing in crowded product categories, sponsored listings have become a core component of marketplace performance marketing strategies.

Display Advertising

Display advertising within marketplaces allows brands to place visual ads across high-traffic areas of retail platforms, including homepage banners, category pages, and product detail pages.

These ads serve a different purpose compared to sponsored listings. While sponsored listings focus on capturing purchase intent, display ads focus on building brand awareness and influencing product discovery. Retail platforms are increasingly offering sophisticated display advertising capabilities that mirror those found in traditional digital advertising networks.

Examples include:

• homepage hero banners during sale events
• category page promotions
• cross-category brand advertisements
• product recommendation widgets

Retail media display ads are particularly effective when combined with behavioral targeting.

According to NielsenIQ Digital Advertising Study, display campaigns within retail environments generate up to 40% higher engagement rates compared to standard display advertising across the web, largely because the ads appear within relevant shopping contexts.

Seasonal events such as Big Billion Days, Prime Day, and festive sales often see a surge in display advertising investments as brands compete for prominent placements.

Brand Stores and Native Advertising

Another rapidly growing component of retail media ecosystems is the creation of brand stores within marketplaces.

Brand stores allow companies to build curated storefronts inside retail platforms where they can showcase product portfolios, storytelling content, and promotional campaigns.

Examples include:

• Amazon Brand Stores
• Flipkart Brand Shops
• Myntra Brand Pages

These storefronts enable brands to present a cohesive brand experience within the marketplace while still benefiting from the retailer’s traffic and discovery mechanisms.

Whereas Native advertising formats embedded within these stores further enhance product discovery.

Native placements include:

• product recommendation modules
• curated collections
• influencer-led product lists
• personalized brand pages

These formats blend seamlessly into the user experience and are less intrusive than traditional banner ads.

According to the BCG Retail Media Study, brands that leverage branded storefronts within marketplaces can see up to 20–30% higher engagement rates compared to standard product listing pages. In highly competitive categories such as fashion, beauty, and consumer electronics, brand stores have become an essential tool for building differentiation within crowded marketplaces.

Data-Driven Audience Targeting

One of the most powerful advantages of retail media networks is their ability to leverage first- party shopper data for advanced audience targeting.

Unlike traditional digital advertising platforms that rely heavily on inferred interests, retailers have access to actual purchase behavior and transaction data.

This enables brands to target shoppers based on highly relevant signals such as:

• purchase behavior and past transactions
• category browsing patterns
• brand affinity
• price sensitivity and discount responsiveness
• geographic location
• shopping frequency

This level of targeting significantly improves advertising performance.

According to Boston Consulting Group, retail media campaigns driven by first-party data can generate return on ad spend (ROAS) improvements of 2–4 times compared to traditional digital advertising channels.

Marketplace platforms are increasingly integrating machine learning and predictive analytics into their advertising platforms to further enhance targeting accuracy. For example, platforms can now identify shoppers who are likely to repurchase products within a specific timeframe and automatically serve relevant advertisements. This shift toward data-driven advertising ecosystems is one of the primary reasons retail media is emerging as a critical growth lever for both brands and retailers.

Retail Media Advertising in the Indian Market

India’s retail media landscape is expanding rapidly as eCommerce adoption continues to accelerate.

According to GroupM India Advertising Forecast, retail media advertising in India is expected to grow at over 30% CAGR between 2024 and 2027.

Leading platforms include:

• Amazon Ads
• Flipkart Ads
• Myntra Ads
• Meesho Ads
• Swiggy Instamart Ads
• Zepto Ads

Fashion marketplaces such as Myntra have seen a particularly strong adoption of retail media as brands compete for visibility within crowded product categories. Retail media is becoming an essential marketing channel for brands looking to scale their marketplace presence.

The Future of Retail Media Networks and Commerce Platforms

Retail media networks are still in the early stages of maturity, yet they are already transforming the economics of digital commerce. What began as sponsored listings within marketplaces is now evolving into a sophisticated advertising ecosystem powered by data intelligence, AI-driven optimization, and omnichannel engagement.

As platforms continue investing in retail media infrastructure, the next phase of growth will be shaped by three major shifts: AI-driven advertising, omnichannel retail media expansion, and fully integrated commerce-advertising ecosystems.

According to McKinsey & Company, retail media could generate $1.3 trillion in enterprise value globally by 2026, making it one of the fastest-growing profit pools in retail. This rapid expansion is driven by advances in technology that enable retailers to turn customer data and digital traffic into highly targeted advertising opportunities.

AI-Driven Advertising

Artificial intelligence is becoming the backbone of next-generation commerce platforms. As marketplaces generate enormous volumes of shopper data, AI systems are increasingly required to analyze and act on this information in real time.

AI enables retail media platforms to optimize advertising campaigns dynamically by analyzing factors such as shopper behavior, purchase intent, browsing patterns, and campaign performance.

This allows platforms to automatically determine:

• Which ads to display to specific users
• When to show those ads during the shopping journey
• How to optimize bidding strategies for maximum return on ad spend

For instance, AI algorithms can identify shoppers who have recently searched for a product category but have not yet completed a purchase. The platform can then serve relevant sponsored listings or display ads at the optimal moment to influence the final purchase decision.

According to Boston Consulting Group, AI-powered retail media platforms can improve advertising efficiency by up to 30–40% through automated bidding and predictive targeting models. Similarly, Amazon’s advertising platform uses machine learning models to evaluate billions of signals daily, enabling highly personalized product recommendations and ad placements.

AI is also transforming campaign optimization for brands. Advanced retail media platforms can now automate:

• bid adjustments
• keyword targeting
• budget allocation
• campaign performance forecasting

These capabilities significantly reduce manual campaign management while improving advertising ROI. As commerce platforms continue integrating AI-driven decision engines, advertising will become increasingly predictive rather than reactive.

Omnichannel Retail Media

The next major evolution of retail media networks is the shift toward omnichannel advertising ecosystems.

While early retail media networks focused primarily on online marketplaces, the future of retail media will extend across multiple customer touchpoints, including:

• eCommerce websites
• mobile shopping apps
• physical retail stores
• connected TV and smart devices
• in-store digital displays

This omnichannel approach allows brands to engage consumers across the full purchase journey rather than relying on a single interaction point.

For example, a customer might encounter a brand advertisement on a marketplace mobile app, later see a personalized promotion while browsing the marketplace website, and finally receive a targeted in-store offer when visiting a physical location.

According to Deloitte Digital Commerce Report, retailers with strong omnichannel capabilities achieve 30% higher customer lifetime value compared to single-channel retailers. Retail media platforms are increasingly incorporating offline retail environments into their advertising ecosystems.

This includes:

• digital screens inside stores
• smart shelf displays
• in-store audio advertising
• targeted loyalty app notifications
• location-based promotions

In India, large retail groups and malls are exploring omnichannel retail media opportunities through growth platforms, which enable targeted brand promotions across both physical retail environments and digital engagement channels. By integrating physical stores into advertising networks, platforms are unlocking entirely new media inventory while offering brands additional touchpoints to influence purchasing decisions.

Integrated Commerce and Advertising Platforms

The convergence of commerce platforms and advertising infrastructure will also define the future of retail advertising. Commerce platforms are increasingly building integrated ecosystems that combine multiple capabilities within a single platform.

These integrated commerce environments typically include:

• eCommerce platforms and marketplaces
• advertising and retail media tools
• customer data platforms (CDPs)
• loyalty and rewards programs
• personalization engines
• marketing automation systems

This convergence allows retailers to leverage unified customer data to deliver highly personalized shopping experiences while simultaneously enabling brands to run targeted advertising campaigns. For example, a commerce platform can use customer data from loyalty programs to identify high-value shoppers and allow brands to run advertising campaigns specifically targeting those users.

According to Forrester Research, retail media platforms that successfully integrate commerce, customer data, and advertising platforms can increase advertising revenue by up to 50% while improving marketing efficiency for brands.

The integration of these systems also enables platforms to provide advertisers with more advanced performance measurement tools. Brands can now track advertising effectiveness across the full purchase funnel, from initial product discovery to final purchase conversion. This level of transparency and attribution is one of the reasons retail media networks are attracting increasing marketing budgets from global brands.

The Strategic Shift Toward Retail Media Ecosystems

As retail media platforms evolve, retailers are moving beyond isolated advertising formats and building comprehensive media ecosystems embedded within commerce platforms. These ecosystems allow retailers to monetize every stage of the customer journey, from product discovery to post-purchase engagement.

In doing so, retail media platforms are positioning themselves not just as sellers of products but as data-driven media platforms capable of delivering measurable marketing outcomes for brands. This transformation is reshaping the competitive dynamics of digital commerce. Platforms that successfully build retail media networks gain a significant strategic advantage:

• stronger brand partnerships
• higher-margin revenue streams
• improved customer insights
• greater control over the advertising ecosystem

As the boundaries between commerce and advertising continue to blur, retail media networks are expected to become a core pillar of digital retail infrastructure in the coming decade.

Conclusion

Retail media networks are redefining the economics of retail advertising. What began as sponsored listings within marketplaces has evolved into a sophisticated advertising ecosystem powered by data, technology, and customer insights. As brands continue to shift marketing budgets toward high-intent environments, retail media will play an increasingly central role in digital commerce strategies.

For retail platforms, the opportunity is immense. By leveraging their traffic, data, and digital platforms, platforms can unlock high-margin advertising revenue while strengthening their relationships with brands. In doing so, they are transforming from traditional merchants into full- fledged media companies. Retail media is no longer just a marketing channel; it is rapidly becoming the next frontier of retail profitability.

However, building and scaling a retail media capability requires the right combination of technology infrastructure, performance marketing expertise, data intelligence, and marketplace optimization. This is where partners like GreenHonchos play a critical role.

Through its Digital Commerce framework, GH works with retailers to integrate commerce technology, customer data, and performance marketing strategies that maximize both sales growth and advertising efficiency. Whether it is scaling marketplace advertising on platforms like Amazon, Flipkart, and Myntra, or enabling retailers to build their own digital growth ecosystems, GH helps brands capitalize on the rapidly expanding retail media opportunity.

As retail media continues to evolve, retailers that combine commerce, data, and advertising capabilities will gain a significant competitive advantage. With the right strategy and technology partnerships, retail platforms can move beyond product sales and build high-margin media ecosystems that drive sustainable growth in the digital commerce era.

GreenHonchos (GH) helps retail brands unlock the full potential of retail networks by enabling data-driven performance marketing, marketplace advertising strategies, and AI-powered commerce optimization. From managing sponsored listings and marketplace ad campaigns to optimizing product visibility, conversion funnels, and retail media ROI, GreenHonchos supports brands in turning retail platforms into powerful growth engines.