Retail Media Networks: Building an Internal Revenue Stream

Retail media has emerged as one of the most significant revenue opportunities in modern retail. By monetising their first-party data and digital shelf space, retailers are building high-margin revenue streams that are transforming their P&L — and their relationships with suppliers.

What Is Retail Media?

Retail media refers to advertising sold by retailers to brands and suppliers, delivered across the retailer's owned digital properties — website, app, email, and increasingly in-store digital screens. The defining advantage of retail media over traditional advertising is its proximity to the point of purchase and its grounding in first-party shopper data.

The Revenue Opportunity

For a retailer with SAR 1 billion in annual revenue, a well-developed retail media network can generate SAR 30–80 million in incremental high-margin revenue annually. This is not theoretical — it is being achieved by retailers across the GCC who have invested in the capability. The margin profile of retail media revenue (typically 60–80% gross margin) makes it transformative for overall profitability.

Building the Foundation

A successful retail media network requires three foundational elements: a unified customer data platform that can segment and activate shopper audiences, a self-serve advertising platform that allows suppliers to plan, buy, and measure campaigns, and a measurement framework that demonstrates clear ROI to advertisers.

Supplier Relationships

Retail media changes the retailer-supplier relationship fundamentally. Suppliers who previously paid for shelf space through trade terms are now also investing in digital advertising with the retailer. This creates new commercial conversations and new leverage for retailers — but also new responsibilities around transparency and measurement.

Getting Started

For retailers who are new to retail media, the recommended starting point is sponsored product listings on the e-commerce platform. This is the highest-ROI entry point, requires the least infrastructure investment, and delivers immediate, measurable results for advertisers. From this foundation, retailers can expand into display advertising, email, and in-store digital media.