Retail Media Networks: Perspectives from John Gomez of RPM Labs

John Gomez is a former Trader Joe’s executive and is now the CEO of RPM Labs.  This new technology company is bringing retail media capabilities directly to mobile devices.

We recently sat with him to better understand today’s retail media landscape and what to expect in the months (and years) ahead.

How many retail media networks currently exist?

“I believe there are nearly 300 retail media networks in the market today. The number keeps shifting as new retailers enter the segment, while others discover that in-store initiatives are more complex to execute than anticipated.”

What does the data say? Are they more or less effective than “traditional” networks? Why or why not?

“Traditional” networks have historically captured the majority of ad spend, but retail media networks offer a distinct value – the ability to reach and influence consumers closer to the point of purchase. Despite this advantage, 80% of global retail sales occur in stores. Retail media spend there is only about 10%. In-store growth has lagged due to several factors:

• Capital-intensive hardware: Retailers seek clearer ROI before investing. Partnering with strong hardware providers is essential.
• Budget friction: Shopper and trade budgets negotiated through JBPs (joint business plans) don’t yet fully accommodate incremental retail media spend. This dynamic is gradually improving as retailers and CPGs recognize the benefits of digital displays.
• Limited software: Most current solutions provide basic content management and can’t scale relevant shopper experiences. Advanced AI solutions can address this by delivering personalized content optimization and accurate measurement through real-time data analysis.

Digital wallets — used by 70% of shoppers under 40 — offer a simple solution for addressing retail media’s growth challenges without additional hardware investment. The channel bridges the gap between traditional digital advertising and in-store retail media by bringing targeted advertising directly to consumers’ mobile devices, an experience that is more familiar to shoppers.”

With so many media options out there today, who is ultimately making the spending decisions? What criteria should they be using for ad buys?

“Activating in-store retail media requires an enterprise sales process including Merchandising, Marketing, Finance, Operations, and Facilities functions.  More media dollars will only begin to flow into retail once the right hardware and right software is in place.

However, today, CPGs drive the spending decisions and need to see incremental sales from their in-store ad buys. As such, having the right scalable software and accurate measurement of incrementality (as mentioned above) isn’t enough. Retailers must also work with CPGs to better define in-store retail media budgets, removing the friction currently in place with today’s joint business planning process.”

Does RPM Labs have any compelling case studies?

” Yes — through our work at RPM Labs we’ve delivered measurable results for merchants using our platform to power in-store retail media, optimize merchandising, and elevate shopper experiences. For example:

• Large Grocery Chain: Achieved a +2.8% average total brand sales lift and improved shopper satisfaction by implementing our full-store retail media and merchandising solution.
• Major Convenience Retailer: Realized a +5.5% increase in incremental beverage sales and a +4.9% transaction growth through our smart screens and AI-driven Intent Engine.

Merchants especially value how AI is transforming the retail environment creating engaging shopping experiences. In this case our AI Intent Engine uses real-time data to optimize merchandising and inventory decisions, ultimately boosting both engagement and sales.”

What are your predictions for the future of retail media?

“In-store retail media will inevitably grow. Widespread adoption hinges on the ability to deliver hyper-relevant content at scale. As more retailers and networks adopt software tools and solutions that prioritize creating a more engaging in-store experience, rapid growth will follow.

As mentioned earlier, digital wallets represent a major growth opportunity. Our newest solution leverages our AI Intent Engine to activate targeted retail media campaigns directly within shoppers’ smartphones, enabling retailers and brands to scale personalized content without additional hardware—unlocking a powerful new frontier in retail media.”