E-commerce
September 17, 2026
Are you wondering how to reconcile ad sales and retail performance without losing your suppliers? The answer lies in one word: proof. Suppliers who buy advertising space from you now expect measurable results, comparable to those of Google or Meta. If you do not show them the effectiveness of your channels, they will move their budgets elsewhere.
Retail media has become a major source of revenue for large retailers, but it has disrupted the historical balance. Where co-op budgets were once controlled by the merchant, suppliers now demand transparency, targeting, and reporting. A real challenge, but also an opportunity to build stronger and more profitable relationships.
So how do you reconcile ad sales and retail performance? On the agenda:
Why has retail media changed the game for merchants?
How did co-op budgets pave the way for retail media?
What expectations do suppliers now have regarding performance?
How to turn supplier pressure into winning partnerships?
What concrete benefits are there for merchants who excel in retail media?
Here we go.
Summary
Why has retail media disrupted the balance between retailers and suppliers?
Retail media has profoundly shifted the balance of power in commerce. Previously, the merchant controlled the advertising budgets allocated by their suppliers. Today, these suppliers have become true advertising clients, demanding performance and transparency.
As Drew Cashmore, Strategy Director at Vantage, explains, "because of retail media, power dynamics have shifted slightly." Suppliers are no longer content with just paying discounts: they are buying ad space and they want results. This reversal forces merchants to behave like professional advertising agencies.
For an e-commerce merchant, understanding this shift is essential. It is no longer just about selling products, but about demonstrating that your advertising channels bring real added value. Those who ignore this risk seeing their advertising revenues evaporate.
This evolution is accompanied by an increased professionalization of marketing teams. Brand media buyers are now trained to digital standards and compare your offers to those of advertising giants. To remain credible, you must invest in measurement tools and talents capable of managing complex campaigns. This is a profound cultural shift, but essential to take advantage of this new reality.
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How did cooperative budgets pave the way for retail media?
Cooperative budgets, or "co-op", have been around for a long time. Suppliers pay retailers advertising rebates to promote their products. These budgets generally represent 2 to 3% of the total purchases made by the retailer.
Take a concrete example: a retailer that buys €1 million worth of products from a supplier can receive €20,000 to €30,000 in advertising rebates. These amounts are then used to finance campaigns, often at the retailer's discretion.
This system gave a clear advantage to the retailer. They controlled the use of the funds, and the supplier had little visibility on performance. But that era is over. Suppliers are now demanding proof of effectiveness, which is a major game-changer.
With the rise of retail media, these cooperative budgets are gradually transforming into real advertising investments. Suppliers demand to know where every euro is spent and what returns it generates. This transition is forcing retailers to rethink their offering: it is no longer about simple rebates, but comprehensive advertising solutions, with clear objectives and shared performance indicators.
What role has Amazon played in the rise of retail media?
Amazon was the catalyst for modern retail media. In 2008, the platform launched its "Product Ads," paving the way for other e-commerce sites. This initiative showed that it was possible to monetize the audience of an online store.
Traditional merchants quickly understood the value. Thanks to cooperative budgets, they could generate additional revenue without selling more products. An in-house magazine, a website, or a newsletter became profitable advertising spaces.
This evolution has transformed the perception of retail media. It is no longer just an option, but a strategic revenue source. Merchants who adopted it early have gained a head start on their competitors.
Today, platforms like Criteo or CitrusAd allow even the smallest players to get started easily. They offer turnkey solutions to manage campaigns, targeting, and reporting. This democratization is accelerating the adoption of retail media and pushing all merchants to position themselves quickly so as not to miss the train.
What exactly is retail media?
Retail media can be defined simply: it is the advertising that merchants sell on their own channels, whether it be their website, their publications, or their physical stores. The objective is twofold: to increase product sales and to generate non-merchandise revenue.
Concretely, a merchant can sell advertising space to their suppliers on their homepage, their category pages, or their newsletters. Each space becomes an additional source of revenue.
For major brands, it is "having your cake and eating it too". Advertising stimulates product sales while creating a new revenue stream. A winning strategy, provided it is well mastered.
There are several formats: banners, sponsored products, videos, or even placements in internal search results. Each format meets different objectives, from brand awareness to conversion. By diversifying your offers, you better meet the varied needs of your suppliers and maximize your advertising revenue.
Why has performance become the central issue of retail media?
The shift of cooperative budgets towards retail media has a major effect: it raises expectations. Suppliers are now comparing your channels to search, social media, and programmatic buying. They demand the same level of reporting, targeting, and performance.
This requirement is a challenge for merchants. It is no longer enough to sell advertising space; its effectiveness must be proven. Suppliers want to know how many sales their campaigns generate, which segments are reached, and what the return on investment is.
For merchants, this is an opportunity to stand out. Those who provide accurate data and proven results retain their suppliers and increase their budgets. The others risk losing valuable revenue.
Performance is not limited to direct sales. It also includes awareness, consideration, and loyalty. By offering advanced metrics such as incrementality or brand uplift, you show that you understand your suppliers' marketing challenges and that you can help them achieve their long-term goals.
What is the central dilemma of retail media for merchants?
The dilemma is simple to formulate, but complex to resolve. As Drew Cashmore puts it: "Budgets that were going into the retail space will disappear, unless there is mutually beneficial value." In other words, suppliers will only stay if you bring them real value.
Merchants must therefore prove that their media channels are as effective as the alternatives. This implies providing professional tools: detailed reporting, analytics, dashboards. Brand media buyers are accustomed to these standards.
Those who do not adapt will lose budgets. Those who do adapt can transform this pressure into an opportunity for growth. The choice is clear, but it requires investments in tools and skills.
This dilemma is all the more acute as retail media margins are high, often higher than those of product sales. There is therefore a strong incentive to succeed. But the stakes go beyond simple financial gain: it is about preserving the trust of your suppliers and building sustainable partnerships, based on tangible results.
How can merchants act as advertising networks?
To succeed in retail media, retailers must adopt the mindset of an advertising agency. This means providing suppliers with the same tools offered by major advertising platforms.
Concretely, this involves performance dashboards, detailed reports, and advanced targeting capabilities. Suppliers want to know where their ads are being displayed, who is seeing them, and what actions they generate.
This transformation is not trivial. It requires technological investments and upskilling of teams. But it is the price to pay to retain and grow suppliers' advertising budgets.
To achieve this, you can rely on solutions like Google Analytics, ad management platforms, or data visualization tools. The key is to centralize the data and make it accessible to your suppliers. By automating reports, you save time and increase transparency, two key elements for building a relationship of trust.
What benefits can merchants derive from successful retail media?
Merchants who excel in retail media can position themselves as essential growth partners for their suppliers. This strengthens loyalty and unlocks additional budgets that support both merchandising and marketing objectives.
The benefits are manifold. First, incremental revenue: retail media generates high margins that complement product sales. Next, an increase in sales: well-targeted campaigns stimulate purchases.
Finally, a competitive advantage. A well-executed retail media program protects the merchant's position against competitors and advertising networks. It is a virtuous circle that strengthens the entire business.
In concrete terms, these benefits translate into better resource allocation, in-depth customer knowledge, and an ability to innovate. By analyzing advertising data, you identify emerging trends and adjust your assortment. You thus become an indispensable strategic partner for your suppliers.
How does retail media strengthen supplier relationships?
An effective retail media transforms the retailer-supplier relationship. The supplier no longer sees the retailer as a simple distribution channel, but as a strategic marketing partner. This perception changes everything.
Suppliers are more inclined to allocate larger budgets to a retailer that proves its effectiveness. They become more loyal and collaborative. Negotiations become more constructive, based on data rather than assumptions.
For the retailer, this is an opportunity to consolidate its ecosystem. By helping its suppliers succeed, it strengthens its own position. A win-win relationship that benefits all parties.
This dynamic also encourages joint innovation. You can co-create campaigns, test new formats, or launch exclusive products. By sharing risks and successes, you build a long-term relationship, far stronger than a simple commercial transaction.
What competitive advantages does retail media offer to merchants?
Well-executed retail media creates a competitive moat that is difficult to copy. It protects the retailer against both direct competitors and advertising networks like Google or Meta.
The data collected is a major asset. Retail media provides insights into buying behavior, campaign performance, and category trends. These insights help improve merchandising, pricing, promotions, and supplier negotiations.
Finally, well-targeted retail media enhances the shopper experience. Relevant and timely ads strengthen long-term loyalty. The retailer becomes a trusted intermediary between the supplier and the consumer.
To maximize this advantage, it is crucial to combine advertising data with your CRM and loyalty program data. This 360-degree view allows you to personalize the experience at every touchpoint. In doing so, you create a unique ecosystem that your competitors will struggle to replicate.
How does Qstomy help transform retail media pressure into an opportunity?
Qstomy, the Shopify AI agent, helps merchants transform the pressure of retail media into a concrete opportunity. By guiding shoppers to the right products, Qstomy increases sales and demonstrates the effectiveness of your advertising channels.
Concretely, Qstomy improves conversion through personalized recommendations, cross-selling, and up-selling. It optimizes the average basket size and tracks packages, which boosts customer satisfaction. A satisfied shopper is a returning shopper, and a supplier who sees results.
Qstomy also manages after-sales service, freeing up time for your teams. With more than 100 merchants supported, Qstomy proves that technology can sustain both retail performance and supplier relations. A key asset to convince your partners to stay.
By automating repetitive tasks, Qstomy allows you to focus on data analysis and strategy. This enables you to quickly identify the best-performing campaigns and adjust your offers. This agility is a decisive advantage in a constantly evolving competitive environment.
What checklist before launching a high-performing retail media program?
Before getting started, make sure you have a solid foundation. Here is a checklist to maximize your chances of success.
In brief
Reporting tools: provide clear dashboards and detailed reports.
Advanced targeting: offer precise segmentation options for each campaign.
Proof of performance: show concrete results, not promises.
Supplier relationship: transform negotiation into a data-driven partnership.
Buyer experience: relevant ads that improve loyalty.
FAQ
Is retail media only for major brands? No, even Shopify stores can sell space to their suppliers, provided they have measurement tools.
How do you convince a supplier to stay? By proving the effectiveness of your channels with precise data and measurable results.
Can Qstomy help improve performance? Yes, by increasing conversion and optimizing the shopping experience, Qstomy strengthens the value of your channels.
To go further: How to drive traffic to an online store (SEO, ads, social media)? - Qstomy, Integrating customer service responses into a useful e-commerce SEO strategy for customers - Qstomy, E-commerce SEO strategy for category pages - Qstomy, How to build an e-commerce Facebook Ads strategy? - Qstomy, Which platform to choose to sell digital products? - Qstomy, Does Texas levy a sales tax on online purchases? - Qstomy, Analyzing e-commerce conversations: understanding real customer questions - Qstomy.
Enzo
September 17, 2026
