Off-Site Retail Media is Misunderstood: Part 2

In Part 1 of this article, we examined how RMNs fail to fully understand the value of off-site retail media, which often amounts to 40-60% of their revenue. In Part 2, we look at common misconceptions held by advertisers that leads to underinvesting in these channels.

A lot of advertisers complain about paying a “data tax” for off-site retail media, since it comes at a price premium vs. the standard cost of media on Meta, YouTube, or TikTok. In fact, a December 2023 TripleLift study found that retailer data costs were the number one challenge for brands investing in off-site retail media.

Brands are resentful when they assume—in most cases, incorrectly—that they can get the same media at a lower price when buying platform-direct. And the sticker shock of 20-30% higher CPMs, especially when they are held to cost-efficiency goals, is at least understandable.

Nevertheless, if brands feel strong-armed into buying through RMNs to satisfy JBP requirements it feels like a “tax.” This is especially the case when they don’t have transparency into where their “tax dollars” are going, making them question whether the price premium results in incremental value or is merely extractive.