The Organizational Side of Retail Media: Who Should Own It?
Retail media — paid advertising on retailers’ websites, apps, streaming channels, and in-store — is a fast-growing opportunity brands can’t ignore. As retailers build out advanced digital platforms and collect more shopper data, they provide targeted advertising options that influence purchases (see our Retail Media 101 piece).
However, determining exactly where retail media should live inside an organization is still up for debate. Should sales own it? Marketing? Or a dedicated digital/ecommerce team? There are pros and cons to each approach. Brands must consider their company structure, objectives, and culture when deciding who should take the lead.
Sales-Led Retail Media
Within some consumer packaged goods (CPG) companies, retail media sits within the sales organization. This makes sense, as sales teams manage retailer relationships day-to-day. They know the ins and outs of negotiating with channel partners. Retail media is often viewed as just another part of the trade promotion mix requiring retailer expertise.
Sales-led retail media provides tight alignment between media campaigns and in-store execution. When sales owns the budget, retail media directly supports promotions, displays, and merchandising plans. This integrated planning ensures consistency across shopper touchpoints.
However, sales teams tend to be laser-focused on short-term sales goals. They may not have expertise in data-driven audience targeting and cross-channel measurement. Transitioning sales leaders into thinking beyond ROAS presents a challenge.
Marketing-Owned Retail Media
Other brands house retail media under the marketing team. Digital and media buying have traditionally fallen under the CMO’s purview. Many marketing organizations are building retail media capabilities including agencies, ad tech vendors, and researchers.
Marketers are data-driven and think in terms of reach, share of voice, and brand lift. They design integrated plans across channels and aim to incrementally grow sales (see the Importance of Incrementality in Retail Media), not just hit quarterly targets. Marketing-led retail media applies this holistic, omni-channel mindset.
On the flip side, marketers lack intimate knowledge of retail partners. They may design campaigns that don’t align with retailers’ priorities and in-store realities. Marketing must collaborate closely with sales to execute effective retail media programs.
Dedicated Ecommerce Teams
Some brands take a hybrid approach with a separate digital or ecommerce team owning retail media. These specialists act as a bridge between sales, marketing, and retailers. They blend channel expertise with an analytics-first approach.
Ecommerce teams have flexibility in their mandates, not being tied to short-term sales quotas. They can balance brand-building and performance goals. Ecommerce leaders also act as internal evangelists, educating the organization on retail media’s value.
Of course, an ecommerce team still needs tight sales alignment to succeed. And they must influence marketers to contribute budget towards retail media’s brand outcomes. Clear governance and close cross-functional collaboration remain critical.
Key Considerations
Determining the right organizational home depends on the brand’s structure, culture, and objectives:
- Sales owns crucial retailer relationships, but may lack digital media expertise
- Marketing brings data and integration experience, but not channel insights
- Dedicated ecommerce centralizes retail media, but still needs sales/marketing buy-in
No model is one-size-fits-all (more on the challenges and impact on organizations). Brands must consider these factors when deciding who should take the lead on retail media:
- Current org design — Is there already strong digital/ecommerce leadership?
- Culture — How siloed are sales and marketing? How open to change?
- Priorities — Short-term sales targets or long-term brand growth?
- Resources — Is there budget and talent to support a new team?
- Retailer nuances — Are certain channels more significant partners?
While organizational models vary, collaboration is key. Sales, marketing, and ecommerce teams all play critical roles in retail media strategy. As the space matures, brands taking an integrated approach will pull ahead.
