RMN Watch: The Great Divergence Begins

Five Networks, Five Playbooks. One Mandate for Brands: Adapt or Be Left Behind.

For years, the retail media narrative has been about explosive growth. Now, the story is getting more interesting. The gold rush is evolving into a calculated land grab, and the major players are no longer just building RMNs; they are forging distinct, powerful identities. This isn't a race to create clones of Amazon Ads; it's a strategic divergence.

This week, we saw five major networks make moves that signal their unique playbooks for the future:

1. Walmart is building a financial fortress.
2. Target is selling a unified brand experience.
3. Kroger is democratizing access to premium data.
4. The Home Depot is empowering brands with self-service.
5. Sephora is betting the house on creator-led commerce.

For CPG and FMCG executives, navigating this fragmented landscape is the new imperative. Understanding these individual strategies isn't just about media planning; it's about understanding the future of your retail partnerships.

The Five Playbooks in Detail

1. Walmart Connect: The Profit Engine Fueling the Empire

• The News: Walmart’s global ad business posted 46% year-over-year growth (U.S. arm, Walmart Connect, grew 31%). Executives explicitly stated this high-margin advertising revenue gives them the “flexibility” to absorb costs from economic pressures like tariffs.
• The Strategic Readout: Walmart Connect is no longer just a revenue stream; it is a tectonic shift—a profit engine funding their core competitive strategy (pricing).

2. Target Roundel: The Unified Brand Experience

• The News: Target continues to emphasize its "One Target" omnichannel approach, integrating media with product development, visual merchandising, and their flagship loyalty program, Target Circle.
• The Strategic Readout: Target is selling access to its unique, affluent and trend-conscious shopper and demanding that brand messages are unified across all touchpoints.

3. Kroger Precision Marketing (KPM): The Data Democratizer

• The News: KPM is expanding its managed-service offerings for Connected TV (CTV) and Programmatic Audio.
• The Strategic Readout: Kroger is democratizing access to high-impact media channels for mid- and small-sized brands by taking the technical complexity out of programmatic buying. They are selling the outcome, not just the impression.

4. The Home Depot: The Self-Service Revolution

• The News: The Home Depot is launching "Orange Access," a new self-service platform for advertisers.
• The Strategic Readout: This move is designed to double the number of suppliers advertising by removing friction and empowering brands with direct control and real-time data.

5. Sephora: The Creator-Led Commerce Play

• The News: Sephora is deepening its investment in its creator network, focusing on micro-influencers and "Sephora Squad" members.
• The Strategic Readout: Sephora is betting that in the high-involvement beauty category, trust and authentic influence are more powerful drivers than simple ad impressions.

The New Triple Challenge for Brands

The Great Divergence is creating three interconnected crises for brands:

1. The Measurement Crisis: With networks like Walmart funding pricing with ad revenue, siloed metrics like ACoS have become dangerously misleading. The new imperative is a holistic framework that connects every ad dollar to the total health of the business.
2. The Orchestration Challenge: Success is no longer about just buying media; it's about orchestrating touchpoints (CTV, social, search) into a single, seamless brand conversation.
3. The Execution Challenge: As platforms offer more self-service control (like Orange Access), the volume of data and complexity of levers transfer the full burden of execution to the brand, surpassing human capacity to optimize effectively.

Navigating this new era requires an AI-native approach. In a world where every retail partner has a different playbook, a unified, AI-powered strategy is the only way to win.