With offsite retail media growing and with advertisers already using it, the challenges it throws up are becoming more prominent – as are their solutions.
RetailX Offsite Data Workbench report in association with Koddi has taken survey data of 126 US marketers to assess how they use offsite – and how that use will change. Here we take a look at the challenges advertisers face with buying and managing offsite retail media and outline what that means for retailers and their networks.
Key findings
Measurement and attribution are top pain points – “Difficult to compare results across platforms” (39%), “Limited access to performance metrics” (32%), and “Lack of transparency about ad placement” (33%) are the top concerns. This signals a fragmented ecosystem where brands struggle to obtain consistent and actionable insights across different platforms.
Targeting and efficiency gaps versus onsite media – “Difficult to target consumers effectively compared with onsite media” (32%) indicates that offsite campaigns currently lack the rich first-party data and contextual relevance offered by onsite placements.
Format and inventory challenges – “Too many different ad formats” (30%) and “Inventory quality issues” (29%) suggest inconsistency and lack of standardisation, which adds complexity and can lead to waste of spend on poor quality inventory.
Privacy and data access – “Complicated data privacy policies/restrictions” (28%) and “Can’t access retailer data through my normal buying platform” (24%) point to structural limitations in how data is shared and integrated. These limitations likely stem from heightened privacy regulations and proprietary data protection by retailers leading to lack of transparency.
Performance and skills concerns – “Delivers lower ROAS” (22%) and “Lack of technical buying skills”
(20%) are somewhat lower ranked, but still notable. This reflects a maturity gap in managing complex,
tech-driven campaigns outside traditional ecosystems.
Strategic implications
Offsite retail media is still evolving and suffers from fragmentation, data silos and lack of transparency.
While onsite retail media benefits from retailer-owned data and unified environments, offsite placements tend to introduce greater technical, operational and strategic challenges.
Brands may hesitate to scale offsite spend unless measurability, standardisation and integration can
be improved across retailers and their networks.
Overcoming the challenges
For retailers, the challenges above can be overcome by retailers, brands and offsite platforms in the following ways:
Strategic partnerships – Retailers are forming strategic alliances with social platforms (Instacart x Google, Walmart x Vizio, CVS x Reddit) to expand audience reach and enhance data sharing, bringing more closed-loop measurement to the open internet.
Data collaboration and clean rooms – Adoption of clean room technology and privacy-first data collaboration will allow better identity matching, analytics and attribution while respecting regulatory concerns. Retailers and brands must invest in unified tech stacks, advanced CRM integration and persistent identifiers for omnichannel measurement.
Transparency and industry standards – The sector will need to prioritise openness, standardised metrics and transparency in order to build advertiser confidence and ensure sustainable growth. Industry bodies and premium RMNs are setting new guidelines to improve clarity around ad placement, audience targeting and reporting.
Omnichannel and full-funnel solutions – The future lies in offering seamless, unified campaign options across online, offsite and instore touchpoints – driven by full-funnel strategies and dynamic data activation. Innovations in gamification, digital coupons, interactive media and influencer-led content will help keep engagement high and ROI measurable.
Diversification of advertiser base – RMNs will increasingly attract non-endemic brands and new verticals – such as automotive, financial services, travel – leveraging first-party data for more tailored media campaigns. This expansion helps diversify revenue streams and drive offsite growth past the FMCG-centric model of recent years.
To learn more, download the RetailX Offsite data workbench report in association with Koddi, which takes Koddi’s survey data and RetailX consumer data to assess the trajectory of the offsite retail media sector, offering a data analysis, a deep dive into implications, a range of case studies and company profiles that show offsite in action and a boardroom brief and roadmap as to where to go next.
