Navigating the Complexities of Retail Media Management in the CPG Sector: Challenges and Strategies

The landscape of retail media within the Consumer Packaged Goods (CPG) industry is rapidly evolving, presenting both opportunities and significant operational challenges. Many brands are investing substantial portions of their digital advertising budgets—often around 40%—across a variety of platforms including Amazon, Walmart, Kroger, and CVS. While performance metrics such as Return on Ad Spend (ROAS) may appear promising on paper, managing and optimizing retail media campaigns on a daily basis can be an arduous endeavor.

The Fragmented Nature of Retail Media Ecosystems

One of the primary hurdles is the disparate nature of retail media platforms. Each marketplace operates as its own distinct universe with unique interfaces, targeting capabilities, and learning curves. For example, Kroger Precision Promotion functions quite differently from Amazon’s Demand-Side Platform (DSP), and CVS Media Exchange employs its own set of logic and data structures. This fragmentation means that rather than mastering a unified retail media strategy, brands often end up learning multiple, siloed systems without much overlap or shared methodology.

Challenges in Performance Measurement and Reporting

Accurate reporting remains a significant pain point. Attempts to develop comprehensive dashboards that consolidate performance metrics across all platforms are often thwarted by inconsistencies. Each platform measures key metrics—such as impressions, clicks, or conversions—in its own way, rendering direct comparisons unreliable. As a workaround, some teams resort to manual methods, such as screenshots and PowerPoint summaries, regardless of the difficulties in ensuring data comparability.

Creative Development and Asset Customization

Creative assets must often be tailored to meet the specific requirements of each retailer’s media environment. Walmart, for instance, prefers bright, high-contrast imagery with prominent pricing information, while Kroger may emphasize coupon integration, and Amazon often favors lifestyle imagery. Producing multiple versions of creative assets for the same product launch not only increases workload but can strain creative teams—sometimes leading to frustration or resource conflicts.

Internal Competition and Attribution Complexities

Another nuanced challenge involves internal competition between platforms. Running simultaneous campaigns on retailers like Target and Walmart for the same product can lead to attribution dilemmas—each platform tends to believe it is responsible for driving the conversion. This makes answering fundamental questions, such as “which campaign was most effective?” particularly difficult for finance teams and brand managers.

Strategic Considerations: To In-House or Partner?

Given these complexities, many brands contemplate whether to continue managing