Retail Media Therapy – EP38

Open Letters, Big vs Small Networks & The In-Housing Dilemma

Welcome back to the couch. In this episode of Retail Media Therapy, Viv and Colin tackle three topics that are dominating boardrooms, conference stages and LinkedIn threads:

1. The measurement obsession in retail media
2. Whether size really matters for retail media networks
3. The rise of in-housing – and what it means for brands

Expect metaphors. Mild football confusion. And a lifetime supply of Berocca at stake.

🧨 Topic 1: An Open Letter to Bayer on Measurement

After comments from Bayer’s retail media lead suggesting retail media must improve measurement before budgets increase further, Viv responds with an open letter.

The central question:

Why are we holding retail media networks to a higher measurement standard than the rest of advertising ever faced?

Key discussion points:

• Retail media now commands 25% of some brand media budgets
• Calls for “holistic measurement” and cross-retailer comparisons
• The industry's obsession with incrementality
• Whether measurement is genuinely the blocker - or just the latest conference cliché

Colin’s take?

No TV network in history was ever asked for perfect incrementality modelling before getting a budget.

Viv’s take?

We’ve confused efficiency with effectiveness.

And yes, there may be aspirin involved.

📏 Topic 2: Does Size Matter in Retail Media?

Two case studies spark the debate:

• A UK Co-Op retail media network launching with ~500 stores and 1 million members
• Australia Post launching a network with limited rollout
• 
  

So how big is “big enough”?

Is scale essential?

Or is audience quality and retailer relationship what really matters?

Key considerations:

• CPM economics at smaller scale
• Regional strength vs national reach
• Specialist audiences vs mass audiences
• The myth that “more networks” equals “too many networks”
• 
  

Conclusion?

Size doesn’t automatically determine value. Relevance does.

🏠 Topic 3: In-Housing – Retail Media’s Next Shift

In-housing is accelerating – particularly driven by retail media.

Why?

• Speed requirements
• Exponential growth in creative demand
• Cost pressure
• Need for commercial alignment
• AI enabling scale
• 
  

Colin shares examples including:

• P&G dynamically optimising sponsored products every 15 minutes
• Arla’s “The Barn” in-house model
• L’Oréal’s Retail team moving to 100% programmatic in-house
• 
  

But it’s not all upside.

Viv raises the key risks:

• Talent churn
• Cultural clash
• Creative stagnation
• Owning underperformance internally
• 
  

The likely answer?

Hybrid models. Keep strategic creativity external. Bring operational scale closer.

💡 Episode Takeaways

• Retail media measurement is improving – but the narrative is exaggerated.
• Smaller networks can still offer meaningful value.
• In-housing is accelerating – but managing talent and performance is complex.
• The future likely belongs to hybrid models.
• 
  

🛋️ Join the Conversation

Is measurement really retail media’s biggest problem?

How big is big enough?

Would you in-house retail media?

Lie down on the couch and let us know.

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