When we have a full understanding of the direction that a client’s media needs to take, we begin engaging with relevant media owners that can support our objectives. From their ability to drive effective reach and target different audiences to using the right tactics to drive engagement, attention and the desired call to action; our partnerships with media owners ensure we can measure effectiveness, maximise value and deliver a connected customer experience.

In this Media Innovation series, we speak with some of our partners from across the advertising industry to uncover everything there is to know about their channel.

Media Innovation: Retail Media

Retail Media refers to the digital advertising space, retail data assets and in-store opportunities a retailer or marketplace owns, which brands can use to execute their advertising campaigns. The IAB has forecasted that online retail media advertising spend will exceed traditional linear TV ad spend by 2026 to reach €25bn. For the first in our Media Innovation series, we sat down with Skai’s executive vice president, David Sequeira to find out how media owners can get the most out of retail media for their clients. 

What is the one thing you wish everyone knew about retail media? 

Retail media isn’t just another media channel. It’s the closest thing we’ve ever had to real consumer intent. The teams that run retail media and commerce operations are all starting to become one, blurring the line between commerce and media. Retail media links supply chain, shopper behaviour, media investment and sales in a single loop. This means that advertisers need to look beyond how they’re optimising bids & budgets and consider other signals such as digital shelf metrics. For example, if you can see that a product is low in stock, you will want to make sure that bidding is pulled back so you’re not paying high rates for a product that doesn’t have much more opportunity to sell.  

The brands that win won’t treat retail media as a budget line; they use it to uncover business insights for growth. The moment people see it that way, the entire conversation becomes more strategic. 

 

What’s the biggest misconception advertisers have about retail media? 

People assume that it’s easy. That you plug in spend and magic happens. In reality, every retailer behaves differently. The data is fragmented, as are the teams within media agencies that plan and buy retail media. 

If you consider retail media in Europe as an example, you have over forty countries, each with their own collection of retailers. In the UK, we have the big six grocers plus Amazon, all operating separately. It becomes even further fragmented when you look at the structure within media agencies where retail media is planned and bought by disparate teams. Many agencies have teams that focus purely on Amazon, with other retailers dealt with completely separately. This leads to teams fighting internally for budget, with no real view on how to spend budget most effectively across all retailers. 

This challenge is underscored by the misconception that retail media is a lower funnel, tactical decision. Historically, it’s been treated like search, for brands trying to make a sale. Today it’s becoming full funnel. Take Amazon as an example. It encompasses CTV and subscriptions with Amazon Prime, then has Amazon DSP plus sponsored brand and product opportunities. Advertisers and agencies must consider retail media holistically and better organise their agencies to get the most from it. It can’t be a TV team, a search team and DSP team each buying Amazon separately, it must be joined up. Once advertisers and their agencies realise this, their performance will be transformed. 

What are the questions you’re most often asked by advertisers? 

There are two main questions advertisers have asked me over the last year: 

“How do I measure retail media consistently?”

Measurement is the biggest thing in retail media that we’re being questioned about. Everyone wants a unified, comparable view across all retailers. From there, they want to understand how it’s effecting real sales. Incrementality is becoming a huge topic for us. Advertisers want to prove the value of retail media and measure it consistently. This is where tools like Skai and our Databox solution matter. 

“How do I scale globally?

Advertisers are operating across a messy retailer universe with no standardisation. Advertisers without a tech partner to bring everything together in one place face a huge challenge. For every big CPG advertiser I speak to, the questions come down to: how many retailers have you got? How many can you bring in? Can we see it all in one place? They want a unified way of planning, buying and measuring retail media globally.  

 

If you could change one thing in the industry, what would it be? 

Specific to retail media: fragmentation. Every retailer has their own taxonomy, reporting style and measurement framework. It slows brands down, it slows agencies down and it slows retailers down. 

If we could standardise the basics, everyone could focus on driving value instead of translation work. And while we’re at it… one login for all retailer platforms wouldn’t hurt, that’s where Skai comes in, (shameless plug)!  

  

What’s the best use of retail media you’ve seen in the past three months? 

The best work I’ve seen recently is from brands that combine retail media data with upper-funnel insight. They’re not creating flashy, one-off campaigns, but are building real momentum between insight, activation and measurement. These brands are outperforming quarter after quarter because they’re consistent, not reactive.

What are you most passionate about achieving this year in media? 

This year, beyond commercial goals, I’m passionate about pushing the conversation around neurodiversity in our industry.  

I have two autistic sons and watching how they navigate the world has reshaped how I think about workplaces. So many people in media are ‘masking’; holding it together, managing sensory overload or social pressure, just to get through the day. 

If we can build environments where people don’t have to hide who they are to succeed, the work improves and the culture improves. Creativity comes from cognitive diversity. For me, making the industry more inclusive and more human is just as important as any media trend. 

  

How can media agencies get the most out of retail media for their clients? 

There’s a real opportunity to be had in stopping firefighting and wasting time on how agencies and brands are set up operationally to instead start strategizing again.  

For me there are three things that agencies must focus on in retail media: 

  1. Lean into AI – Focus less time on tasks that can be automated, and more time on delivering client value. Agencies (and brands) that use agentic AI for insight, planning and optimisation will move faster and deliver more strategic value.
  2. Own the operating model – The retail media landscape is developing and changing so quickly that most CPGs and agencies are still figuring out their operating structures. It’s crucial for agencies to work with their external partners to connect the dots, align their technologies and bring everything together across retail media and commerce operations.
  3. Use data as the connective thread – This is linked to connectivity. Agencies shouldn’t treat each retailer as a silo. Instead, they must find smart ways of using data to unify retailers so brands can plan properly. Brands are going to demand to see incrementality and business impact, not vanity metrics like ROAS. Yes, brands will pay their agencies for what they do, but increasingly, they’re going to pay for the performance they deliver and the guidance they can give them on how to spend their next pound to sell more. 

The agencies that do these three things will become indispensable partners. 

 

Skai is the world’s leading omnichannel platform unifying retail, search and social advertising with its AI-powered commerce media platform. 

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