Could DSPs Be Retail Media's Panama Canal?

In today's episode, I talk about Koddi's new "State of Programmatic Retail Media" report and why programmatic access might be the key to unlocking retail media's next growth phase.

The Current Landscape

Today's retail media dollars are heavily concentrated: 77% on Amazon, 7% on Walmart, and only 16% spread across dozens of other retail networks
Despite recognizing retail media's effectiveness (81% agree it's effective), many advertisers find the buying process painful
Fragmentation and manual processes are the biggest obstacles to wider adoption

The Case for More DSP Integrations

I examine how demand-side platform (DSP) integrations could transform retail media buying:

96% of buyers say they would consider buying on-site media via a DSP
93% would shift non-retail budgets into retail media if they could buy programmatically
Top advantages buyers see in DSPs:
- More cost-efficient buying (67%)
- Eliminating manual tasks and saving resources (51%)
- More effective targeting (47%)

Retailer Concerns

I discuss why retailers might be hesitant to embrace DSP integration:

Fear of commoditizing their proprietary first-party data
Concern about negotiated pricing collapsing when inventory sits alongside other ad offerings
Uncertainty about maintaining control over their network

A Middle Path Forward

Despite these concerns, retailers can integrate with DSPs while maintaining control:

Setting guardrails around data
Preserving exclusive ad formats
Offering curated deals tailored to their specific audiences
Using the right supply-side technology to mediate demand safely

Beyond DSP Integration

While programmatic access is important, I point out that it's not a complete solution:

Cross-retailer measurement remains a sticky challenge
Brands still face inconsistent methodologies across platforms
What actually unlocks budgets: better outcomes, legibility, and ease of use

The alternative to integration—forcing advertisers to navigate each retail media network separately—is increasingly looking like an unnecessarily difficult journey when a more direct route is possible.

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Link to written blog version of today's episode

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