Getting Offsite Retail Media Infrastructure in Place
The retail media landscape is undergoing a seismic shift. As retailers look to expand their reach and revenue beyond their owned properties, offsite retail media is emerging as a powerful force. Offsite retail media ad spend is expected to grow at twice the rate of on-site spend through 2026, according to eMarketer. In fact, U.S. offsite retail media ad spending is predicted to rise by 42.1% in 2025, more than double the growth rate of on-site ad spend (15.3%).
By leveraging valuable first-party data, retailers can extend their influence, delivering personalized and relevant ads across the broader digital ecosystem — from external websites to social media platforms. This strategic move enables brands to connect with consumers at scale, fostering deeper engagement and driving traffic back to the retailer's owned channels.
The Offsite Advantage
Offsite retail media offers several compelling advantages:
- Expanded Reach: Access a wider audience beyond the retailer's website and app.
- Harmonize Marketing: Harmonize retailer owned enterprise marketing investment and offsite advertising to create a single marketing experience.
- Enhanced Brand Visibility: Boost brand awareness and recognition.
- Improved Customer Acquisition: Attract new customers and direct them to the retailer's owned channels.
- Boosted Sales: Enhance inter-channel dynamics and drive foot traffic to stores
- Data-Driven Insights: Gain valuable insights into customer behavior and preferences.
Key Steps for Retailers
As offsite retail media becomes a significant growth driver, it’s crucial for retailers to take several steps to prepare their infrastructure for success:
Invest in Data Infrastructure
- Data Clean Rooms: Establish secure, privacy-compliant environments for data sharing, enabling effective collaboration while protecting sensitive customer information.
- Privacy-Preserving Technologies: Implement solutions such as encryption and anonymization to ensure compliance with evolving data regulations (e.g., GDPR, CCPA).
- First-Party Data Activation: Use customer data from loyalty programs, purchases and website interactions to power targeted advertising campaigns that drive engagement and conversions.
Forge Strategic Partnerships
- External Publishers and Platforms: Build relationships with high-traffic external sites, social media platforms and content networks to expand ad reach.
- Ad Tech Providers: Partner with advanced ad technology platforms to enhance ad placement, enable AI-driven targeting and optimize return on ad spend (ROAS).
Enhance Ad Tech Capabilities:
- Programmatic Advertising: Automate ad buying and selling to achieve greater scale, efficiency, and audience targeting precision.
- Advanced Targeting: Utilize AI and machine learning to segment audiences based on shopping behavior, demographics and interests for higher engagement.
- Cross-Channel Measurement: Implement measurement solutions that provide a comprehensive view of ad performance across multiple channels, enabling data-driven decisions.
Personalized and Dynamic Content:
- Real-Time Personalization: Use AI-driven recommendation engines to adjust ad content dynamically based on user behavior and preferences.
- Dynamic Creative: Develop responsive ad formats that adjust visuals, messaging and calls-to-action based on the consumer's device, context and purchase stage.
Key Steps for Brands
To fully leverage the power of offsite retail media, brands must take a proactive approach and adjust their strategies to align with the evolving advertising ecosystem:
Collaborate with Retailers
- Access First-Party Data: Tap into retailers' customer insights to refine audience segmentation and enhance personalization.
- Co-Create Campaigns: Work closely with retail media teams to develop joint campaigns that align with both brand and retailer objectives.
Develop Cohesive Cross-Channel Campaigns
- Consistent Messaging: Ensure a unified brand voice across all touchpoints, from social media to retailer websites, providing a seamless customer experience.
- Seamless Customer Experience: Drive traffic to well-optimized product pages or landing pages to reduce friction and improve conversions.
Focus on Audience-Driven Content
- Personalized Content: Tailor messaging and visuals to specific audience segments, using insights from first-party data and past behavior.
- Engaging Creative: Create compelling, high-quality ad creatives that attract attention and encourage interaction.
Optimize for Measurement and Attribution
- Track Key Metrics: Monitor KPIs such as CTR, conversion rates, ROAS and CLV to assess campaign effectiveness.
- Implement Attribution Models: Use multi-touch attribution models to accurately measure offsite media's impact on sales.
Embrace Dynamic and Agile Campaigns
- Real-Time Optimization: Continuously refine targeting, bidding strategies and creative based on campaign performance data.
- Test and Learn: Regularly experiment with A/B testing and creative variations to improve campaign outcomes.
The Future of Retail Media
Offsite retail media is poised to revolutionize how brands and retailers connect with consumers. By embracing this emerging channel and implementing the strategies outlined above, businesses can unlock significant growth opportunities and stay ahead of the competition.
About the Author
Adam Skinner is managing director, global unified retail media, at Epsilon. He is responsible for product strategy across onsite, offsite and in-store retail media offerings. Adam also oversees go-to-market strategy and global partnerships.