Retail Media Networks are no longer an experimental channel for digital advertisers. They have become an integral part of closed-loop marketing, enabling brands to leverage first-party consumer data for precise audience targeting. In 2025, US retail media ad spending is projected to reach approximately $62.4 billion, marking a significant increase from the previous year. This growth reflects the sector's continued momentum, with eMarketer expecting a 20% increase in allocations by U.S. advertisers.
For years, retailers have generated revenue through endemic advertising. However, the next major growth opportunity lies in non-endemic advertising. Non-endemic advertising refers to ads placed by brands that do not sell products directly through the retailer but want to reach the retailer’s audience based on shared interests or lifestyle fit. This shift is creating a multi-billion-dollar revenue stream as non-endemic brands tap into valuable consumer insights to drive conversions without needing to sell on the platform. Retailers that effectively monetize both endemic and non-endemic ads can unlock new revenue streams, maximizing profitability in the evolving commerce media landscape.
This article explores the strategic significance of endemic and non-endemic advertising, helping businesses make informed decisions about their retail media strategy.
Decoding Endemic vs. Non-Endemic Advertising in Retail Media
Endemic Advertising - The Foundation of Retail Media
Endemic advertising in retail media promotes products closely aligned with the retailer’s core offerings, leveraging first-party data for highly relevant, contextual ads. These ads seamlessly integrate with product listings, appearing as sponsored products or enhanced content, and drive higher CTRs and conversions by aligning with consumer intent, creating a frictionless shopping experience
Here are some examples of endemic advertising:
- CPG brands advertising on grocery platforms
- Electronics manufacturers promoting products on tech-focused e-commerce sites
- Fashion labels showcasing collections on apparel marketplaces
The natural alignment between endemic advertisers and retail platforms creates a cycle of data enrichment. As consumers interact with endemic ads, retailers gather valuable insights that further refine targeting capabilities, driving continuous improvement in campaign performance.
Non-Endemic Advertising: Expanding the Retail Media Horizon
Non-endemic advertising in retail media allows brands outside the retailer’s ecosystem to tap into its first-party data and reach high-intent shoppers. By leveraging cross-category targeting, these ads expand audience reach, diversify retailer revenue, and enhance the shopping experience by introducing complementary products or services. Thus, they create new monetization opportunities beyond traditional product placements.
Examples of non-endemic advertising include:
- Financial services companies advertising credit cards on e-commerce platforms
- Travel brands promoting vacation packages on home goods websites
- Insurance providers targeting new homeowners on furniture retailer sites
It opens up new revenue streams for retailers and enhances the overall advertising ecosystem. For brands, it provides access to high-intent audiences and valuable first-party data that can inform broader marketing strategies.
The true power of non-endemic advertising lies in its ability to reach consumers at critical moments in their purchase journey. For example:
- Financial services brands can target consumers making large appliance purchases, indicating major life changes
- Travel companies can engage with shoppers buying seasonal clothing, suggesting upcoming vacation plans
- Insurance providers can connect with first-time homeowners through furniture and home improvement retailers
Implementation Strategy
Successful non-endemic campaigns follow a three-phase approach:
- Discovery: Identifying high-value audience segments through collaborative data analysis.
- Contextual Alignment: Creating messaging that complements the shopping experience.
- Continuous Optimization: Leveraging AI to refine targeting based on real-time performance data.
The AI-Powered Technological Infrastructure Powering Endemic and Non-Endemic Advertising
Here are the different ways in which retail media uses advanced data infrastructure and AI-driven optimization to deliver targeted advertising:
First-Party Data Utilization and Audience Segmentation
Retailers possess valuable first-party data that can transform advertising strategies. Advanced segmentation, predictive modeling, and deep learning algorithms allow brands to reach high-intent audiences with precision, improving engagement and ROI.
- Access unified customer profiles through Customer Data Platforms (CDPs)
- Utilize AI-powered micro-segmentation for precision targeting
- Employ predictive modeling to forecast customer Lifetime Value (LTV)
- Uncover hidden patterns with graph database technologies
AI-driven data analytics solutions enable retailers to harness the full potential of their first-party data. By implementing sophisticated Customer Data Platforms (CDPs) and leveraging machine learning algorithms, brands can create unified customer profiles and identify micro-segments for hyper-targeted campaigns.
Contextual Intelligence and Real-Time Personalization
Reaching the right customer at the right moment is key to driving ad performance. AI-powered contextual targeting ensures ads appear when they are most relevant, boosting engagement and conversions for endemic and non-endemic brands alike.
- Leverage Natural Language Processing (NLP) for deep contextual understanding
- Implement AI-powered Dynamic Creative Optimization (DCO) for instant personalization
- Capitalize on edge computing for split-second optimizations
- Enhance user experience with perfectly timed, relevant ad placements
Advanced Natural Language Processing (NLP) capabilities and Dynamic Creative Optimization (DCO) solutions enable brands to deliver highly personalized, contextually relevant ads in real-time. This technology ensures that both endemic and non-endemic advertisers can maximize their impact within the retail media ecosystem.
Cross-Channel Attribution and Measurement
Understanding what truly drives conversions is critical for optimizing ad spend. Advanced attribution models and closed-loop measurement systems help brands track online-to-offline impact, refine targeting, and justify retail media investments.
- Utilize machine learning-powered multi-touch attribution models
- Implement incrementality testing for accurate campaign impact measurement
- Access near real-time performance data through closed-loop measurement systems
- Make data-driven decisions to maximize Return on Ad Spend (ROAS)
Cross-channel attribution solutions leverage machine learning to provide brands with a holistic view of their campaign performance. By implementing incrementality testing and near real-time performance tracking, advertisers can make data-driven decisions that maximize their Return on Ad Spend (ROAS).
Agentic AI Applications
Agentic AI brings a new era of autonomous, goal-driven intelligence to retail media, enabling end-to-end campaign management, hyper-personalization, and operational efficiency with minimal human intervention. These AI agents continuously learn, adapt, and execute complex tasks across channels, transforming how retailers and brands activate, optimize, and measure both endemic and non-endemic advertising.
- Automate campaign setup, trafficking, and creative rotation, cutting activation time from days to minutes
- Dynamically optimize bids, budgets, and targeting in real time based on live performance data
- Generate and test personalized ad variations at scale, adapting creative and messaging to individual audience segments
- Continuously reconcile delivery, billing, and performance data to reduce revenue leakage and speed up revenue cycles
- Provide always-on monitoring and closed-loop optimization, ensuring campaigns self-improve and adapt to shifting market conditions
Brands can leverage agentic AI to orchestrate media operations autonomously. From campaign intake and trafficking to real-time optimization, analytics, and billing, agentic AI empowers retailers and brands to maximize efficiency, reduce manual workload, and drive higher ROI across all channels.
Strategies for Successful Non-Endemic Advertising in Retail Media
Non-endemic advertising presents a significant opportunity for brands to reach new audiences within RMNs. Here is a structured approach to making non-endemic advertising work effectively for your brand.
Identifying Relevant Audience Segments
Unlike endemic brands, non-endemic advertisers must identify cross-category opportunities where their product naturally aligns with shopper behavior. The key is leveraging first-party data to reach high-intent audiences in unexpected yet effective ways.
- Intent-based targeting: Use purchase signals to reach shoppers showing relevant buying behavior.
- Lookalike modeling: Expand reach by targeting users with similar traits to existing customers.
- Cross-category insights: Find hidden opportunities such as a premium credit card ad for high-end electronics buyers.
- Retailer collaboration: Work with RMNs to analyze data and refine audience targeting.
Crafting Compelling Non-Endemic Ad Experiences
Retail media is intent-driven, meaning ads should feel seamless, not intrusive. Brands must align their messaging with the shopping mindset to capture attention without disrupting the experience.
- Contextual relevance: Align ad messaging with the platform’s content for higher engagement.
- Interactive formats: Use shoppable videos, product carousels, or personalized recommendations to enhance engagement.
- Subtle positioning: Frame ads as valuable guides. For instance, a travel brand on a grocery site offering meal planning tips for vacations.
- Seamless integration: Ensure ads blend into the user’s journey rather than feeling like traditional promotions.
iOPEX’s creative optimization solutions help non-endemic advertisers craft compelling ad experiences that resonate with retail media audiences. By leveraging interactive formats and contextual relevance, iOPEX ensures that non-endemic ads feel like a natural part of the shopping journey.
Optimizing Campaign Performance
Success in non-endemic advertising is an evolving process. Brands must use real-time data, A/B testing, and dynamic bidding to improve results continuously.
- A/B testing: Experiment with different headlines, visuals, and CTAs to refine messaging.
- Real-time bidding (RTB): Adjust budgets dynamically based on which audiences convert best.
- Performance analytics: Use RMN insights to identify top-performing placements and formats.
- Ongoing refinements: Continuously optimize ad targeting, creative, and placement for sustained success.
The Synergy Between Endemic and Non-Endemic Advertising
The integration of endemic and non-endemic advertising in RMNs is creating new opportunities for brands to reach broader audiences and drive incremental sales. Rather than operating in silos, these two approaches work together to enhance consumer engagement and improve campaign effectiveness.
Consider a potential partnership between a protein bar brand (endemic) and a fitness app (non-endemic) on a retail media network. This collaboration creates a multi-dimensional campaign that captivates health-conscious consumers, offering bundled promotions and interactive content.
Such co-marketing initiatives highlight the powerful synergy between endemic and non-endemic advertising, opening new avenues for brands to expand their reach and boost sales.
- AI-driven insights: Retailers identify hidden shopper connections, like cookware buyers also showing interest in travel.
- Hyper-targeted campaigns: Machine learning uncovers patterns to introduce relevant yet unexpected product categories.
- Optimized ad placements: RMNs balance endemic and non-endemic ads dynamically for better engagement and revenue.
Collaborative Campaign Framework:
The most successful retail media networks are developing structured collaboration models between endemic and non-endemic advertisers:
- Data Fusion: Combining purchase history (endemic) with lifestyle indicators (non-endemic) to create super-segments with 2.7x higher engagement rates
- Sequential Targeting: Implementing coordinated campaign sequences where endemic ads establish context, followed by complementary non-endemic messaging
- Shared Attribution Models: Developing holistic measurement frameworks that acknowledge the complementary impact of both advertising types on consumer behavior
Challenges and Considerations in Non-Endemic Retail Media Advertising
As non-endemic advertising gains traction in retail media, brands and retailers must navigate a complex landscape of challenges and strategic considerations. Addressing these hurdles is essential for unlocking the full potential of cross-category marketing initiatives.
- Maintaining brand safety and relevance in diverse retail environments through advanced contextual intelligence systems powered by AI and machine learning.
- Navigating potential conflicts with endemic advertisers and category exclusivity agreements using sophisticated rights management systems.
- Addressing privacy concerns and data usage limitations for non-endemic targeting through innovative methodologies that balance personalization and protection.
- Overcoming measurement challenges in attributing non-endemic ad performance with multi-touch attribution models enhanced by machine learning capabilities.
- Ensuring compliance with evolving privacy regulations (e.g., GDPR, CCPA) through consent management platforms and data clean rooms while preserving targeting capabilities.
Brands and retailers that embrace these challenges and invest in cutting-edge technologies will be well-positioned to capitalize on the immense opportunities presented by non-endemic advertising in retail media, driving innovation and value creation across the entire ecosystem.
How iOPEX is Empowering Leading Brands and Retail Media Players Transform Advertising into A Revenue Engine
The convergence of endemic and non-endemic advertising in RMNs heralds a new era of innovation and revenue generation in digital advertising. This synergy drives unparalleled opportunities for brands to engage consumers across diverse touchpoints, leveraging advanced data analytics and AI-driven optimization techniques.
iOPEX stands at the forefront of this revolution, offering unparalleled expertise in retail media advertising. Our capabilities span the entire spectrum of digital marketing and media services:
- Advanced data analytics and audience segmentation, powered by cutting-edge AI and machine learning algorithms.
- AI-driven campaign optimization and personalization, ensuring maximum relevance and engagement.
- Cross-channel attribution and measurement solutions, providing holistic insights into campaign performance.
- Strategic consulting for both endemic and non-endemic advertising approaches tailored to each client's unique needs.
As the retail media ecosystem continues to evolve, iOPEX remains committed to driving innovation and delivering measurable results. By harnessing the power of both endemic and non-endemic advertising strategies, we empower brands to maximize their performance, create new revenue streams, and thrive in the dynamic digital marketplace. Book a demo with our experts to learn more about our solutions.
