As shopping habits increasingly shift online, the importance of retail media advertising continues to rise, providing brands with unprecedented opportunities to engage shoppers directly with data-driven targeting. While endemic brands—those selling directly through the retailer— have long benefited from retail media, non-endemic brands (those not directly sold by the retailer) may not realize the opportunity available to them. 

Non-endemic brands can leverage retail media networks not for direct product placement but for access to valuable shopper data. Retailers collect extensive first-party data on consumer purchase behavior, preferences, and shopping patterns.  By utilizing these insights, non-endemic brands can refine their targeting strategies, improve campaign effectiveness, and reach high-intent audiences beyond the retailer’s own platforms. 

For example, knowing a customer has purchased diapers from Walmart allows a hotel chain to highlight its family-friendly accommodations. Similarly, a car rental company can target consumers who recently booked a vacation.  These insights provide powerful segmentation opportunities that drive relevance and improve advertising performance.

 

Why Non-Endemic Brands Should Care About Retail Media 

Consumers increasingly begin their shopping journeys on retailer platforms, making them valuable environments for collecting consumer insights. One of the biggest advantages for non-endemic brands is access to retailers’ first-party data, which allows them to:

• Better understand shopper behavior based on actual purchase patterns rather than broad demographic assumptions.
• Enhance targeting by identifying audiences based on their shopping habits, interests, and frequency of purchases.
• Optimize advertising spend by reaching high-intent consumers rather than relying solely on traditional targeting methods.

Unlike endemic brands, which primarily use retail media for onsite promotions, non-endemic brands should focus on leveraging retailer data to enhance their digital advertising campaigns. Retail media platforms allow brands to extend audience reach across programmatic and social channels, ensuring campaigns are based on verified shopping behaviors rather than generalized interest signals.

 

The Power of Customer Segmentation in Retail Media 

Retailers’ first-party data provides deep insights into shopper behavior, enabling segmentation that goes beyond generic audiences. Non-endemic brands can leverage segmentation to target customers based on:

• Purchase behaviors – e.g., a fitness brand targeting consumers who frequently buy workout supplements.
• Product affinity – e.g., an insurance provider identifying customers who purchase high-value electronics.
• Seasonal trends – e.g., a travel brand engaging consumers who shop for vacation-related products.

Rather than placing ads on retailer websites, non-endemic brands should use these insights to inform digital campaigns across multiple platforms, ensuring higher relevance and conversion rates.

 

Building a Strategic Retail Media Plan for Non-Endemic Brands 

Creating an effective retail media strategy for non-endemic brands requires careful planning and precision. Here’s a step-by-step approach to building a retail media plan that works:

1. Targeting the Right Platforms

   The foundation of an effective retail media strategy for non-endemic brands is identifying the most relevant customer segments using retail data. Rather than focusing on advertising within retailer platforms, non-endemic brands should leverage purchase behavior insights to refine their targeting across broader digital channels. For example, a travel brand might target consumers who frequently purchase luggage or vacation essentials, while an insurance company could reach shoppers buying high-value electronics, indicating a potential need for coverage. By selecting the right data sets—such as past purchases, shopping frequency, or product preferences—brands can create highly targeted campaigns that resonate with the right audiences at the right time.

2. Setting Goals

   Your strategy needs clear, measurable objectives. Are you focused on increasing brand awareness? Driving traffic to your product page? Or boosting sales of a specific product? Defining these goals up front will help you measure success and ensure your campaign is aligned with your business objectives.

3. Understanding Performance Metrics

   Once your goals are set, it’s time to dive into performance metrics. Retail media platforms provide a wealth of data on how your ads are performing, including impressions, clicks, conversions, and cost per acquisition (CPA). By analyzing these metrics, you can see what’s working and what isn’t, allowing you to adjust your campaign in real-time. Be sure to track the metrics that align with your business goals—whether that’s increasing brand visibility or driving direct sales.

4. Optimizing Ad Creatives and Messages

   Creating high-impact ads for retail media is key to capturing consumer attention. Focus on showcasing the product benefits clearly—what makes your product different or better? Use high-quality visuals that reflect the value of your product and ensure your creative elements are optimized for the platform you’re using. A clean, compelling call-to-action (CTA) should always be present, guiding the consumer towards the next step.

5. Measuring and Iterating

   One of the biggest advantages of retail media is the wealth of data you have access to. Use this data to measure ad performance and adjust your strategy accordingly. Test different creative formats, messaging, and targeting options to identify which combinations yield the best results. Retail media allows for constant iteration, so don’t be afraid to tweak your campaigns and try new approaches to keep performance optimized.

 

Common Pitfalls to Avoid 

While retail media offers tremendous opportunities, there are a few common mistakes non-endemic brands should be mindful of as they refine their strategy.

1. Over-Reliance on Broad Targeting

   One of the most significant pitfalls in retail media is over-relying on broad targeting. It’s easy to get excited about the potential reach of a campaign, but casting too wide of a net can lead to wasted ad spend. Instead, non-endemic brands should focus on precision targeting—leveraging the retailer’s customer segmentation tools to ensure they are reaching the most relevant and high-value audiences.

2. Underestimating the Power of Data Analytics

   Retail media offers access to a wealth of data about consumer behavior. However, not all brands take full advantage of this. Failing to analyze enough data or not adjusting campaigns based on insights can limit the potential of your advertising. Regularly monitor your performance metrics and use them to refine your strategy. This data helps identify high-performing segments, successful creative formats, and even time-of-day trends, ensuring your ads are always performing at their peak.

3. Misaligning Messaging with Customer Intent

   One of the most powerful aspects of retail media is the ability to deliver ads that are highly relevant to what consumers are actively shopping for. However, non-endemic brands sometimes miss the mark by misaligning their messaging with customer intent. For example, if you’re selling workout gear, delivering an ad for protein powder to someone currently shopping for gym apparel may be effective. But delivering an ad for beauty products to someone shopping for athletic shoes might miss the mark entirely. Ensure your messaging and products align with what the customer is actively searching for or considering, making your ad feel relevant and timely.

 

Seize the Opportunity: Leverage Retail Media for Smarter Advertising 

Retail media represents a powerful and underutilized opportunity for non-endemic brands to elevate their advertising strategies. By tapping into retailer platforms, leveraging first-party data, and refining ad targeting, non-endemic brands can engage with the right consumers at the right time, driving both brand awareness and sales. The potential to reach niche customer segments with precision, alongside the contextual relevance of ads during the buying process, allows non-endemic brands to compete with the bigger players in the market.

If you’re ready to dive into retail media but need guidance on optimizing your strategy, Ventura Growth is here to help. As The Trade Desk’s leading certified service partner, we specialize in helping businesses like yours unlock the full potential of retail media advertising, from setting up the right strategy to refining campaigns based on data-driven insights. Reach out to us and take the leap toward transforming your digital advertising efforts today!