By Mark Fishkin, Vice President of Retail Media Platforms, ISM
As retailers race to scale their media networks, many might be considering open real-time bidding (RTB). The promise? A standardised interface, unified reporting, and access to vast pools of advertisers ready to pour budget into your inventory.
It’s tempting, especially as industry giants like Microsoft and Google position themselves as retail media aggregators. But retail media is not just another typical programmatic arena.
The rush to open RTB threatens the very control and quality that make retail media valuable. Before surrendering their premium shelf space to the highest bidder, retailers need to understand what’s truly at stake and why a more measured approach is advisable.
The growing momentum behind RTB
The retail media landscape faces a clear problem. Over 70 networks compete in North America alone, while brands can only manage relationships with about six of them. Meanwhile, Amazon and Walmart control 80% of the market between them.
As this fragmentation intensifies, major tech platforms are positioning themselves as solutions. Microsoft aims to connect its 500,000 existing advertisers to retail media inventory through programmatic technology. Google follows a similar strategy. These moves signal the industry’s direction toward consolidated access points for retail media buying.
The potential benefits look attractive. Higher fill rates as more advertisers bid on inventory. Flexible budgets through auction-based pricing. Simpler campaign management across multiple retailers. For smaller networks fighting for relevance against the dominant players, RTB offers a pathway to being discovered by brands that simply cannot manage dozens of direct relationships.
Why retailers should approach RTB with caution
While the promise of scale and simplification is compelling, opening retail media inventory to open RTB carries significant risks. The biggest concern is losing control over the advertiser roster. When retailers allow unrestricted bidding, they can quickly find their premium inventory filled with low-quality ads that undermine the shopping experience. This directly impacts consumer trust and purchase intent.
Brand safety becomes a genuine concern in an open RTB environment. Unlike general web inventory, retail media exists in a curated shopping environment where product context matters deeply. Inappropriate ad content (think competitors promoting lower prices, products that conflict with the retailer’s values, or misleading claims) doesn’t just waste an impression; it can actively damage retailers’ reputation and customer relationships. A grocery retailer, for instance, wouldn’t want tobacco ads appearing next to fresh produce, regardless of how high the bid might be.
The stakes are simply higher in retail environments where consumers are actively making purchase decisions.
These concerns become even more pronounced when considering in-store standardisation of digital media. Physical retail spaces represent the heart of most retailers’ businesses, with 85% of sales still happening in-store. Therefore, in-store display and audio advertising must enhance, rather than disrupt, shopping journeys. Open RTB wasn’t designed with these unique considerations in mind.
A balanced approach to programmatic
Rather than jumping straight into open RTB, retailers should start with private marketplaces (PMPs). These environments allow programmatic efficiency while maintaining oversight of who can access inventory and how it’s priced. PMPs create a middle ground where retailers benefit from standardised buying without surrendering control over their advertiser roster.
Retailer control must remain priority. Successful retail media networks understand that their inventory is a premium touchpoint where brands can influence purchase decisions at the most critical moment. This unique value deserves protection through careful curation. Retailers should maintain approval rights over all advertisers, establish clear creative guidelines, and implement category restrictions that align with their retail strategy.
Finding the right programmatic partners requires careful consideration. Too many vendors overpromise and underdeliver, leaving valuable impressions unsold while claiming to champion retail media.
The right partner understands and actively communicates the unique value of retail media inventory to buyers. They see themselves as enablers, not intermediaries, helping retailers maintain their direct relationships with key brands while extending reach to new advertisers. Most importantly, they approach retail media as fundamentally different from general web inventory, acknowledging its special place in the purchase journey.
The greatest opportunity lies in integrating in-store standardisation with omnichannel capabilities. Retailers should enable unified programmatic buys across onsite, offsite, and in-store channels, simplifying campaign management while validating through lift studies. This approach surrounds shoppers throughout their journey while revealing which tactics best deliver on objectives.
Retailers can’t afford to treat their retail media as just another programmatic pipe to be commoditised. It’s the digital frontline of their physical store experience. The most successful players will strategically harness programmatic technology while fiercely protecting what makes their inventory uniquely valuable: control, context, and customer experience.
