Retail media networks (RMNs) are booming. Ad budgets are shifting. Retailers want a piece of the pie. And why wouldn’t they? The promise is appealing: monetize shopper data, capture brand dollars, build walled gardens like Amazon.
But there’s one problem. Most retailers aren’t Amazon.
In reality, very few companies have the scale, tech stack, or data depth to operate a truly self-sufficient retail media network. Everyone else is trying to mimic the playbook — without the necessary ingredients. They’re flying solo in a game designed for teams.
The truth is: retail media can’t scale without collaboration.
The RMN Hype Curve
Let’s start with the obvious: RMNs are a hot topic. CPGs are reallocating budgets. Retailers are launching media offerings faster than ever. The number of retail media platforms has tripled in the last three years.
But many of these launches fall into the same trap — assuming that first-party data and ad space are enough. They aren’t.
Successful retail media isn’t just about having data. It’s about having enough data. It’s about identity. It’s about interoperability. And it’s about meeting advertisers' expectations around reach, precision, and measurement.
Without those, you don’t have a retail media network. You have a media moment.
Why Going It Alone Isn’t Working
Outside of the industry giants — think Amazon, Walmart, Kroger — most retailers struggle to build RMNs that attract and retain serious ad spend. Why?
- Data limitations: Smaller retailers have fragmented, siloed data that’s hard to activate.
- Low scale: Limited reach means limited value to advertisers.
- Lack of identity infrastructure: Without a unified view of the customer, personalization and measurement fall apart.
- Tech complexity: Building the pipes takes time, talent, and capital.
The result? A long tail of underpowered RMNs that don’t meet the needs of modern marketers — or the revenue expectations of the C-suite.
The Case for Collaboration
To scale RMNs, retailers need to stop thinking like walled gardens — and start thinking like ecosystems.
That means building collaborative networks that span retailers, CPGs, publishers, loyalty platforms, and other data-rich partners. When done right, this kind of collaboration expands audience reach, improves match rates, and drives better performance across the board.
But collaboration is easier said than done. Especially when every player wants to control the customer relationship — and nobody wants to hand over raw data.
Composable Identity: The Missing Ingredient
That’s where composable identity comes in.
Composable identity is an approach to identity resolution that’s modular, interoperable, and partner-friendly. It lets each participant maintain control of their data while stitching together shared identity graphs across parties.
In practice, it means:
- CPGs can activate shopper data across multiple RMNs with high match rates.
- Retailers can expand their network via partners without handing over sensitive data.
- Measurement can happen across brands and platforms with a consistent identity backbone.
It’s the difference between building another siloed RMN and building a scalable media ecosystem.
What This Looks Like with Narrative
At Narrative, we make this kind of identity-first collaboration possible.
Our Rosetta Stone product gives companies the tools to translate and match identity across datasets — no matter the format, structure, or source. That means RMNs can unify shopper IDs, CPGs can onboard cleanly, and partners can match records without compromising privacy or control.
Composable identity isn’t a buzzword. It’s the infrastructure layer collaborative RMNs need to work.
The Future of RMNs Is Interoperable
The next wave of retail media won’t be dominated by solo players. It’ll be led by those who can build bridges — not just walls.
That means:
- Forming strategic partnerships with other data owners
- Aligning identity infrastructure across platforms
- Creating activation and measurement pathways that work across networks, not just within them
Composable identity is the connective tissue that makes this possible.
Retailers who embrace collaboration — and invest in identity — will win. Those who don’t will be left behind.
Ready to build and scale your retail media network? Book a demo today.