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In-Store Retail Media – In-House or Outsourced?

Teemu Kurri
Teemu Kurri
 — 
Co-founder, Chief Growth Officer
Connect via LinkedIn
Retail media is booming — but should your in-store network be built in-house or outsourced? This article breaks down the key models, trade-offs, and what truly drives long-term success.

Retail media has rapidly grown from a side initiative into one of retail’s most strategic revenue streams. As building an in-store retail media network gets on a retailer’s agenda a major decision must be made: Should the business and technology be built and sold internally, or entrusted to external partners?

The right choice depends on how a media owner defines success — is for example the measured revenue the dominating factor in all your decisions? Are you willing to take some risks in building something new yourself or is it most important to your business to get the operations running as soon as possible?

This article sums up the choices you have based on our experiences with retailers all over the world during the last years.

Owning It All – Full Control, Full Responsibility

Some retailers choose to develop every element of their retail media network themselves — data infrastructure, ad delivery, analytics, and advertiser tools. And if they want to be self-sufficient, they need to set-up their own team to sell the media too.

This route is only selected by the largest retailers who see retail media as a strategic business unit — one they want to grow, evolve, and protect for the long term. The costs are high but so are the potential winnings.

Advantages

  • Complete ownership of data, technology, and commercial roadmap
  • A business that is tailored to your organizational capabilities and strengths
  • Revenues stay in-house. No revenue share partnerships.

Trade-offs

  • High initial cost and complexity in building a network and kick-starting media sales
  • Requires cross-functional expertise across many competences. You need to recruit and re-train a lot of people.
  • Risks in entering at scale to a totally new business area

Selective Outsourcing – Control Meets Agility

Most major retailers today adopt a hybrid approach:

Keeping strategic ownership of their data and insights, while collaborating with external partners for sales, measurement, and campaign management. Balancing media sales between outsourced and inhouse sales team is one of the key questions in this model.

Advantages

  • Faster controlled market entry with selected few technology partners
  • Balanced control between internal ownership and external scalability
  • Flexible structure in media sales. You might for example keep the trade partner business to yourself while outsourcing the non-endemic advertiser media sales

Trade-offs

  • Demanding data operations:  Data is the key for success. You must allocate adequate resources for providing data for audience creation and maintain it up to date
  • Vendor coordination: managing multiple partners and contracts can be tricky
  • Media sales resourcing: When you have a partner for media sales, it’s very easy to let them sell everything and not develop your own capabilities at all

From a sales perspective, this setup often produces the best results for most retailers.

Internal teams maintain trade partner relationships and audience intelligence, while automation, analytics, and delivery tools from partners help boost efficiency and yield with media sales partners.

Fully Outsourced – The Fast Track

For many, outsourcing the entire operation is the quickest way to enter retail media. In numbers only, most retailers and in a bigger picture the commerce media owners too, fall into this category. It is simply not feasible for a smaller media owner to start building an organization to sell media or to start building any of their own tech.

While these actors will give away a part of their revenue, they will gain peace of mind and ensure they will keep their eyes on their most important ball – the core business.

Advantages

  • Speed: launch quickly and let professionals build and manage your network & business
  • Simplicity: minimal internal setup or maintenance for your organization
  • Network effect in sales: In the not-so-distant future, the smaller in-store networks will be gathered under same roof. They will mix audiences together making it possible to even smaller and mid-sized chains start gaining media revenue.

Trade-offs

  • Limited visibility and influence over your audience data and media products
  • Full dependency on your partners capabilities, both in sales and technology
  • Less differentiation in brand experience or media offering

This option can also be seen as the first steps you take in in-store retail media path. You can safely learn the rules and practices of business at your own pace and when your organization is ready, start in-housing the parts you feel comfortable in running yourself.

Strategic Ownership: The Real Decision

Few retailers want to do retail media entirely in-house or fully outsourced. The most successful ones focus on strategic ownership — retaining control of the data, insights, and advertiser relationships that define their media identity — while outsourcing the layers that benefit most from scale and specialization.

In-store retail media is no longer just about selling screen space; it’s about connecting customer data, content, and commerce into one measurable experience. The key question isn’t who builds it, or even who sells it, but who owns it.

Final Thought

Building or outsourcing is not a binary decision. The real task is to define which parts of your retail media ecosystem are core to your business value, and which can be powered more effectively through collaboration. Get that balance right, and you don’t just create new ad revenue — you create a smarter, more connected retail experience.

In Doohlabs, we enable our customers to pick and choose from sales and operating models they want to outsource and which ones to inhouse. Some of our key features are:

  • We enable multiple simultaneous sales models on our platform: from sales UI to self-services and programmatic
  • Our platform enables you to create valuable audiences that attract advertisers without giving any of the data outside your organization
  • Our platform can be used both by media owners and media sellers. It’s even possible to build multi-retailer networks on top of it

And whichever operating model you choose, it’s important you have partners who can advise your organization to make right decisions on the numerous decision you make. Doohlabs as a pioneer in in-store retail media is always ready to help you.

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Teemu Kurri

Teemu Kurri

Co-founder, Chief Growth Officer

Connect via LinkedIn