Retail media has been built, almost entirely, by CPG. Consumer packaged goods brands were the early adopters because the connection between the advertising context (a retailer’s website) and the product category was obvious. But the category that built retail media is not the category that will define its future. That future belongs to non-endemic advertisers.
What Is Non-Endemic Advertising?
In retail media, an “endemic” advertiser sells products on the retailer’s platform. A “non-endemic” advertiser doesn’t — but their target audience shops there. A bank, an insurance company, a car manufacturer, a travel brand. Non-endemic advertising uses retailer first-party data for audience targeting and reaches those audiences on the retailer’s platform, but without the transaction goal being a purchase of the advertised product. The value is the audience quality — verified, purchase-intent-rich, real identity.
Why the Opportunity Is Enormous
Consider the categories that currently spend the most on advertising globally: financial services, automotive, telecommunications, travel, and media/entertainment. These categories collectively represent hundreds of billions in annual ad spend, and they’ve barely started investing in retail media. For a bank advertising to working-age consumers, a large grocery retailer’s loyalty database reveals income proxies (purchase patterns), life stage indicators (baby products, premium goods), and digital engagement levels. For an auto brand, a retailer can identify households with children reaching driving age through purchase history. That’s far more valuable than a broad demographic target.
The Challenge: Proving the Case
For non-endemic advertisers, the measurement question is more complex — there’s no direct transaction attribution. Performance metrics need to shift toward awareness, consideration, and lifetime value. This requires sophistication from both the retailer’s ad sales team and the brand’s measurement framework. But it’s tractable — brand lift studies, search uplift measurement, and panel-based recall data can link exposure to retailer audiences with downstream brand and purchase behaviour. Non-endemic advertising is where the next phase of retail media growth will come from. Build your retailer data strategies now.