Retail media networks are poised for significant growth, and the physical store is increasingly being recognised as the next major media channel. However, one of the biggest challenges holding back investment in in-store retail media is the lack of standardized metrics. At the What’s In Store for Retail Media Networks event during the NRF 2025 Expo, Yara Daher of IAB Europe highlighted the collaborative efforts between the European and U.S. IAB teams to establish a foundation for measuring in-store retail media effectively.

The Missing Piece: Standardization for In-Store Retail Media

Despite the growing recognition of in-store retail media’s potential — some estimates point to a $20 billion growth opportunity — many retailers and media buyers remain hesitant to invest. According to an IAB Europe survey, a third of respondents cited the lack of standardized measurement as the primary reason for underinvestment.

To address this, IAB Europe and IAB U.S. worked together to define a framework that creates a common language and standard metrics for in-store retail media. Their goal was to ensure that all industry stakeholders, from retailers to advertisers, could align on what constitutes in-store retail media and how its impact should be measured.

Defining In-Store Retail Media

One of the key outcomes of IAB’s work was a clear definition of in-store retail media. The framework stipulates that for an activation to qualify as in-store retail media, it must incorporate data in at least one of three areas:

• Planning
• Execution
• Measurement

This differentiation is critical because while in-store activations have long existed, the integration of data-driven insights ensures they align with broader retail media strategies. The IAB also reinforced that in-store retail media includes both digital and physical experiences — ranging from digital displays to traditional in-store promotions.

Establishing a Unified Measurement Approach

To create meaningful standardization, IAB built upon existing industry methodologies, including digital ad measurement frameworks and the out-of-home media guide from the Media Rating Council (MRC). Their framework categorises in-store environments into specific zones, acknowledging that audience context within a store plays a pivotal role in campaign effectiveness.

The measurement standards are designed to encompass two core areas:

• Media Metrics – Borrowing from digital advertising, the framework introduces standardized impression tracking and ad-serving methodologies tailored for the in-store environment.
• Sales Metrics – Establishing lookback windows and measurement techniques that account for in-store shopper behaviours while integrating seamlessly into the broader retail media ecosystem.

The Path Forward

Daher emphasized that while this framework is a foundational step, continued collaboration between retailers, advertisers, and technology providers will be essential to refine these standards further. With retailers across both Europe and the U.S. (including major players like Kroger, Albertsons, and Ahold Delhaize) participating in the effort, the industry is moving closer to unlocking the full potential of in-store retail media.

As the retail media landscape evolves, these standardized measurement practices will help retailers and brands confidently invest in in-store activations, bridging the gap between digital and physical retail media in a way that is transparent, measurable and scalable.

You can view the full presentation here.

What’s Next?

What’s in Store for Retail Media Networks saw Mark Williamson, who is leading Costco’s retail media efforts, join EMARKETER Principal Analyst Sarah Marzano on stage to discuss how the membership-based retailer is entering the in-store retail media space — strategically, deliberately and in a way that aligns with its core values.

Bridging the Gap Between Retail and Media

One of the biggest challenges in retail media is integrating it into existing retail structures. Williamson acknowledged the tension between traditional retail merchant teams and media teams, and how success requires shifting mindsets. “A media publishing mindset is required to win,” he noted, but added that each retailer must find its own way to adopt this approach.

For Costco, this means ensuring its retail media strategy aligns with the company’s fundamental business model. Unlike other retailers that may look to established RMNs like Amazon or Walmart for a blueprint, Williamson made it clear that Costco will chart its own course. “If it doesn’t build upon what is core to the Costco business, it will ultimately fail,” he said.

Balancing Retail Media with a Strong Private Label

A major differentiator for Costco is its robust private label brand, Kirkland Signature, which sometimes competes directly with national brands — the very advertisers that retail media networks seek to attract. Williamson acknowledged the tension but sees an opportunity to strike a balance.

“Kirkland Signature exists to reinforce the value of membership,” he explained, adding that Costco’s retail media offering must work in tandem with, rather than against, that mission. Retail media can provide national brands with a way to compete effectively within Costco’s ecosystem while ensuring that the overall shopping experience remains aligned with Costco’s brand identity.

The Power of Membership Data

One of Costco’s greatest strengths in launching a retail media network is its deep understanding of its members. Unlike traditional retailers that must rely on fragmented data, Costco’s membership model provides a wealth of first-party data on shopper behaviour.

This creates an opportunity to deliver highly personalised and relevant advertising. However, Williamson emphasised that Costco will approach data usage with caution. “The data exists, it’s there — but how do we responsibly use it in a way that strengthens our relationship with our members?” he said. The priority is maintaining trust and ensuring that advertising efforts enhance the shopping experience rather than disrupt it.

Retail Media in Costco’s Stores: The Long-Term Play

One of the hottest topics in retail media is bringing it into physical stores, but for Costco, that move won’t happen overnight. “We have a lot of work to do in order to prepare ourselves for any kind of innovation in the in-store space,” Williamson said.

With its no-frills, warehouse-style shopping experience, Costco must be careful about how and where it introduces retail media. While digital signage and app-based experiences could provide opportunities, Williamson stressed that any in-store activation must be “incredibly appropriate for the environment.”

The Late Mover Advantage

Many retailers have already launched retail media networks, but Costco is taking its time. While there are obvious challenges to being a late entrant, Williamson pointed to a key advantage: organisational patience and discipline.

Instead of rushing to market, Costco can learn from the successes and failures of others, implementing best practices while avoiding common pitfalls. The company is also launching at a time when technology is more advanced, allowing it to build a modern, scalable retail media infrastructure without the legacy tech debt that some early adopters now face.

The Future of Retail Media at Costco

As retail media networks continue to evolve, Costco is proving that a one-size-fits-all approach doesn’t work. By prioritising member value, carefully integrating media into its retail ecosystem, and taking a long-term view, Costco is setting itself up for sustainable success in this space.

Williamson summed it up best: “If Costco gave into peer pressure, we probably would have done this 10 years ago.” Instead, the company is moving forward with a strategy that stays true to its brand, ensuring that retail media is a natural extension of what makes Costco unique.

You can watch the full conversation here. 

What’s Next?

Mark Williamson, who leads retail media at Costco, shared insights into how the company approaches retail media as an extension of its core business rather than just another revenue stream. The presentation he made at STRATACACHE’s What’s in Store for Retail Media Networks event, presented in partnership with NRF, Retail Media as an Organizational Principle, made a compelling case for aligning retail media with a retailer’s foundational model to drive long-term growth.

Retail Media: More Than Just a Profit Center

Williamson began by reinforcing that Costco’s primary business isn’t just selling goods — it’s selling memberships. This principle shapes every business decision, including how Costco approaches retail media. Unlike some retailers that view media networks as standalone profit centers, Costco integrates retail media to enhance the membership value proposition, ensuring that it ultimately serves its broader business model.

He illustrated this philosophy by walking the audience through the typical Costco shopping experience — where a trip to pick up essentials like milk or eggs often leads to the discovery (and purchase) of unexpected items, from kayaks to luxury skincare products. This “treasure hunt” model, he explained, is what makes Costco unique and is a fundamental pillar of its retail media strategy.

A New Perspective on Retail Media Investment

Rather than using retail media to maximise short-term profits, Costco leverages it to reinforce the core membership model. According to Williamson, retail media must align with three key goals:

1. Growing the Member Base – Attracting new members through strategic advertising and partnerships.
2. Driving Traffic – Encouraging more frequent visits by highlighting high-value products and promotions.
3. Increasing Sales – Boosting revenue through data-driven, targeted media campaigns that drive in-store and online purchases.

To achieve this, Costco collaborates with suppliers to create advertising campaigns that highlight product value while maintaining the brand trust Costco has built with its members. Retail media investments aren’t just about ad impressions or clicks — they must drive measurable business outcomes such as higher foot traffic and stronger membership retention rates.

The Role of Data and Personalisation

While Costco is known for its mass merchandising approach, retail media presents an opportunity to enhance personalisation. Williamson described how Costco is using data and ad tech to “spearfish” rather than cast wide nets. By analysing purchase patterns, they can identify members who might be interested in specific categories they haven’t shopped before or re-engage those whose spending in certain departments has declined.

For example, a Costco member who regularly buys household staples but has never purchased skincare products could be introduced to a new brand through a well-placed retail media campaign. Likewise, lapsed shoppers could be incentivised to return with targeted promotions. By fine-tuning how they use data, Costco aims to create a more tailored and effective member experience without deviating from its core value proposition.

Reinforcing Membership Value Through Retail Media

The overarching takeaway from Williamson’s presentation was clear: Costco sees retail media as a tool for reinforcing its membership model rather than simply monetising its audience. Any profits generated from retail media are reinvested back into the business — primarily by supporting merchants in lowering prices and increasing product value. This approach ensures that members continue to see Costco as a place where they receive unbeatable quality at the lowest possible prices.

As the retail media landscape evolves, Williamson’s insights serve as a reminder that a successful retail media network must be more than a revenue generator — it should enhance a retailer’s core business, build deeper customer loyalty, and drive long-term growth. For retailers looking to build or refine their media strategies, Costco’s member-first philosophy offers a compelling blueprint for success.

You can see the full keynote presentation here

What’s Next?