In recent years, almost every retailer has attempted to start — and sustain — a media network to monetize their audiences. Not every one was successful. The journey is not without challenges, but brands have demonstrated that with the right strategy, the opportunity to build a thriving ad network is within reach.

In 2021, Eric Seufert famously said everything is an ad network. If you have valuable consumer data, you have an opportunity to create one.

Amazon was the first to prove audiences could be monetized effectively, while Target is credited with being one of the first to really make it a stand-alone business. Walmart has expanded what a retail media network can be by acquiring Vizio. But for all these caterpillars that turned into retail media butterflies, Gap, Microsoft and several retailers that encountered bankruptcy all turned into moths, having shuttered their media networks.

Despite the failures, the promise of incremental revenue — often at a higher profit than any other aspect of their operations — has many people excited about the opportunity.

Yet, critics argue retail media growth is a mirage and that advertisers are just testing the channel or shifting shopper dollars from one bucket to retail. We don’t believe that’s the case.

Looking ahead, 2025 will be the year of “fill-in-the-blank” media networks, where organizations in as varied industries as travel and tourism, financial services and software have or are planning to launch ad networks. Many more will follow.

But turning from a data asset “caterpillar” into a profitable media network “butterfly” requires a combination of hard work, strategy and luck. Not every company will succeed but, fortunately, new entrants can learn from the hard-earned lessons and failures of retail media.

Here’s what you need to build your own media network and what to consider to avoid missteps.

A large audience and compelling offer

Advertisers have their choice of destinations, especially given the success of non-endemic ads on retail media. If you don’t have a sizable audience, strong brand heritage or a compelling story for advertisers, it may not be worth it to build out a media network right now.

Technology to enable reach on and off the platform

Remember, while retail media got its start on actual retailers’ dot-coms, it has quickly branched out to social media and other destinations through programmatic. It’s your audience you’re monetizing, not only your physical and digital storefronts.

Effective measurement and proof points

You need to demonstrate to advertisers that you can measure the metrics most important to them, beyond clicks and impressions. Media networks can also drive significant brand lift for a couple of reasons. One, people browse retailer websites like they browse the in-store aisle. They may not be purchasing anything at that time, but using the right strategy to “warm” them for future purchase is a smart approach.

Run pilots and quickly create case studies and collateral to demonstrate success to potentially skeptical audiences. Package measurement with buys, and motivate and empower your sales teams to provide actionable insights to leads.

The right people

Building a media network isn’t like adding an end-cap, or promoting a new product. It’s an intricate business that requires the right talent. It’s unlikely any company has the right internal team to build a media network from scratch. Sure, you can try, but that could result in delays and more missteps than if the right seasoned player joins the team.

For example, PayPal hired Mark Grether, who previously ran Amazon’s ad network and spent three years establishing Uber’s media business. New companies looking to enter this space should find the right talent who has a demonstrable track record. Even with the right person in place, it takes time to build an ad network. But the best time to build one was yesterday. The second best time is today.

Expand the pool of potential advertisers

Among the biggest mistakes a new ad network can make is limiting their advertisers pools to just those who sell on their sites and in their stores. Upwave data has shown that non-endemic ads actually outperform endemic ads on retail media networks. A significant factor in the success of “fill-in-the-blank” media networks is the influx of non-endemic advertisers who see value in these platforms.

Remember, people browsing websites are likely balancing multiple to-dos in their heads. The timely reminder about getting a new quote for auto insurance on a retail site might stand out at just the right time.

Above all, spread your wings

Those same naysayers above may say that other industries aren’t guaranteed the same success as retail media. But there is little difference between retail and all these other opportunities, retail just got there first. Remember, if you have customer data, a strong team and a smart approach to measurement, you have a media network waiting to be built.