Why Small and Medium-Sized Businesses Should Be Using Retail Media Networks

In a digital economy where precision, performance, and proximity to purchase rule the day, Retail Media Networks (RMNs) are quickly becoming a must-have advertising channel—not just for global brands, but increasingly for small and medium-sized businesses (SMBs) as well.

For SMBs looking to drive measurable growth, improve visibility, and maximize limited marketing budgets, RMNs offer something rare in modern advertising: direct access to high-intent shoppers, backed by powerful first-party data and closed-loop measurement.

Here’s why retail media is no longer just a big brand’s game—and how SMBs can seize the opportunity.

What Is a Retail Media Network?

A Retail Media Network is an advertising platform operated by a retailer that allows brands and sellers to run targeted ad campaigns across the retailer’s digital and physical ecosystem. Think sponsored product placements on Amazon, in-app promotions at Walmart, or banner ads on Instacart—all reaching shoppers where they’re actively browsing and buying.

The core advantage? RMNs use first-party data—information collected directly from shoppers based on their purchase behavior, preferences, and loyalty programs—to deliver hyper-relevant ads. That means brands can connect with the right customers at the right moment: at or near the point of purchase.

Why This Matters for SMBs

Historically, access to sophisticated advertising tools and insights was limited to deep-pocketed brands. But retail media has started to level the playing field, offering small businesses many of the same benefits once reserved for national advertisers—without the need for massive spend.

  1. Precision Targeting, Without the Guesswork
    Retailers know their customers. When SMBs advertise through an RMN, they’re not relying on third-party cookies or broad demographics—they’re leveraging actual shopper behavior. That allows for highly accurate targeting based on purchase history, frequency, location, and even cart contents. This is especially powerful for SMBs that need to make every impression count.
  1. Increased Visibility Where It Matters Most
    Retail media allows your brand to show up right alongside (or even above) competitors in digital storefronts. Sponsored product listings, banner ads, and featured placements can help SMBs:
  • Gain visibility in crowded categories
  • Launch new products with impact
  • Re-engage lapsed customers
  • Promote time-sensitive deals and seasonal offers
  1. Affordable, Flexible Campaign Options
    Many RMNs offer self-serve platforms where SMBs can start small, test creative, set their own budgets, and adjust in real-time. Whether you’re spending $500 or $50,000, platforms like Amazon Ads, Walmart Connect, and Roundel (Target) offer scalable tools tailored to a range of advertiser sizes.
  1. Closed-Loop Measurement
    One of the biggest advantages of RMNs is their ability to track ad performance all the way through to a sale—online or in-store. This “closed-loop” model gives SMBs clear insights into what’s working, what’s not, and how to refine future campaigns to improve return on ad spend (ROAS).
  1. Omnichannel Reach with Retail Credibility
    When you advertise through a trusted retailer, your brand benefits from the halo effect of that retailer’s reputation. It builds instant credibility, particularly for newer or regional brands. And with many networks now offering off-site advertising (ads beyond the retailer’s website), you can reach your target audience across the broader web while still tying it all back to retail performance.

Real-World Use Case: A Local Coffee Brand Breaks Through

A regional coffee roaster partnered with Kroger Precision Marketing (KPM) to increase online visibility for its premium blends. By targeting households with a history of coffee purchases and using sponsored listings on Kroger.com, the brand saw:

  • A 40% increase in online sales during the campaign window
  • A 3.5X return on ad spend
  • Significant lift in brand awareness and new-to-brand shoppers

Without a retail media partnership, this level of data-driven execution and measurable ROI would have been out of reach.

Retail Media Networks Accessible to SMBs

While Amazon Ads is the most well-known, there are many RMNs actively serving SMB advertisers:

  • Walmart Connect – Offers search, display, and social integration with flexible budgets
  • Instacart Ads – Popular with emerging food & beverage and CPG brands
  • Kroger Precision Marketing – Excellent for grocery and health-related categories
  • Target Roundel – Strong for household goods, fashion, and wellness products
  • Best Buy Ads, Ulta Media Network, and others are also building SMB-friendly tools

Many of these platforms have training resources, onboarding support, and campaign analytics designed specifically with small businesses in mind.

A New Era of Growth for SMBs

Retail media networks are no longer just a channel for national brands with deep marketing departments. Thanks to improvements in platform accessibility, data targeting, and self-service ad tools, SMBs now have a powerful way to drive results where it matters most—at the digital point of sale.

In an era where privacy regulations are reshaping digital advertising and consumer behavior is shifting faster than ever, retail media gives SMBs the rare combination of precision, performance, and proof.

For small and medium-sized businesses ready to grow smarter, retail media isn’t just an option—it’s an opportunity.