The impact of silos in brand structures on retail media performance

In the modern retail landscape, the rise of digital advertising has brought about a major shift in how brands engage with consumers, writes Greg Deacon, vice president of media ads, groups and business development at Snappy Shopper.

Retail media networks (RMNs), which allow brands to advertise directly on retail platforms, are increasingly becoming a powerful tool for marketers. However, despite their immense potential, silos within brand structures can significantly hamper the effectiveness of these networks. When departments, teams, and data streams within an organisation operate in isolation, the performance of retail media campaigns can be dramatically reduced. Understanding and addressing these silos is crucial for harnessing the full potential of retail media.

Silos in Brand Structures: A Deep-Rooted Challenge
In many organisations, brand structures are divided into distinct silos. These could be based on product categories, geographical regions, marketing channels, or even different customer segments. This fragmentation often results in communication gaps, misaligned strategies, and a lack of collaboration between departments that should ideally be working together.

Within the context of retail media, these silos pose several challenges. Marketing teams focused on digital media often work separately from those focused on in-store promotions or product development, resulting in disjointed messaging and an incoherent customer experience. Retail media, which thrives on seamless omnichannel experiences, requires a holistic approach that bridges these divides. Without synchronisation between the different functions, brands risk delivering inconsistent messaging that confuses customers and weakens campaign effectiveness.

Fragmented Data: The Silent Performance Killer
One of the most significant consequences of siloed brand structures is fragmented data. Retail media networks rely on a wealth of customer data to optimise campaigns, tailor messaging, and track performance across various touchpoints. However, when data is stored in separate silos, teams often lack the full picture of consumer behavior, making it harder to execute data-driven strategies.

For instance, a marketing team may have access to valuable first-party data from the retailer’s website, while the sales team may have insights into in-store purchasing patterns. If these teams cannot effectively share and integrate this information, they are unable to deliver the personalised, targeted experiences that retail media thrives on. As a result, campaigns may lack relevance, customer engagement may drop, and the return on investment (ROI) of retail media efforts can suffer.

Missed Opportunities for Cross-Channel Synergy
Retail media’s power lies in its ability to integrate online and offline touchpoints to create a unified customer journey. However, siloed brand structures can severely hinder this cross-channel synergy. For example, an online ad campaign might not be effectively tied to in-store promotions, leaving customers with an inconsistent brand experience.

A more integrated approach is required, where data from all channels, be it digital, physical stores, or even social media, are leveraged together to create a cohesive narrative. With siloed structures, this becomes a Herculean task, and many organisations miss the opportunity to reach customers with the right message at the right time across all channels.

Breaking Down Silos: The Path to Better Retail Media Performance
The key to unlocking the full potential of retail media networks is collaboration. Brands must foster a culture where marketing, sales, product development, and data teams work together toward common goals. This involves integrating data systems, adopting shared tools for communication, and aligning performance metrics across departments.

Centralising data and creating a unified view of the customer can go a long way toward overcoming fragmentation. Brands should invest in technologies and platforms that allow for seamless data sharing and analytics across all departments, ensuring that all stakeholders have the insights needed to make informed decisions.

Another important strategy is to break down the internal barriers to cross-channel coordination. Retail media’s effectiveness depends on being able to create a consistent, omnichannel experience, and this can only be achieved when all teams are aligned in their messaging and objectives. Collaboration should not be limited to internal teams; brands should also work closely with retail partners to ensure that campaigns are fully integrated across both the brand and retail platforms.

In Conclusion
Silos in brand structures may seem like an inevitable aspect of large brands, but they represent a significant barrier to the success of retail media efforts. These silos not only hinder collaboration and data sharing, but they also stifle the ability to create coherent, omnichannel brand experiences. By breaking down internal divisions, fostering cross-functional teamwork, and unifying data systems, brands can improve the performance of their retail media campaigns, delivering more personalised and effective messaging that resonates with consumers and drives business results. Retail media is poised to play a central role in the future of retail, but only if brands can learn to work together as one unified entity.

Greg Deacon, vice president of media ads, groups and business development at Snappy Shopper

Deacon previously spoke to the RetailX Events team about the rise of Quick Commerce, building long-term customer relationships, and the revolutionary impact of AI and Machine Learning on retail media. Deacon will be speaking at Retail MediaX.

Retail MediaX, the first RetailX Event of 2025, will take place on 13 May at 155 Bishopsgate, London.


Stay informed
Our editor carefully curates two newsletters a week filled with up-to-date news, analysis and research, click here to subscribe to the FREE newsletter sent straight to your inbox and why not follow us on LinkedIn to receive the latest updates on our research and analysis.

Read More

Subscribe to our email community

Created with Sketch.
Receive the latest news
Created with Sketch.
Be the first to hear about our research
Created with Sketch.
Get VIP access to our events
DOWNLOAD OUR NEW REPORT

Warehousing 2025

The InternetRetailing Warehousing 2025 report explores this critical stage of the direct-to-consumer journey