By Charles Mathews. The explosive growth of retail media networks (RMNs) is giving supermarkets a fresh source of revenue — but it’s also raising hard questions about fairness, transparency, and the balance of power dynamics between retailers and suppliers.
A core challenge with RMNs is just how much influence retailers exert, which builds inherent conflicts of interest into their relationships with brands and amplifies power imbalances across the supply chain. Retailers are now multifaceted entities — at once marketplace gatekeepers, data custodians, and advertising platforms — all while holding unparalleled sway over brands’ visibility and commercial success.
“It’s like letting the referee play for one of the teams,” Scott Reinders, COO of Connect, observes. “Retailers have privileged access to granular first-party sales data and consumer behaviour insights, which they can use not only to charge premium advertising rates but also to strategically promote their own higher-margin private-label products, often at the expense of the very brands funding their platforms. This lopsided dynamic forces brands into a difficult position: opting out of a retailer’s media ecosystem risks losing shelf prominence or facing unfavourable placement, both online and in-store.”
The relationship is the rule
“Brands can navigate this in a few ways. Some are building long-term partnerships with retailers and negotiating ad packages as part of broader trade deals. Others are pushing back by asking for clearer performance metrics and ROI guarantees,” Reinders says.
As retailers like Checkers and Pick n Pay in South Africa expand their media platforms, brands are grappling with the challenges of finding their way in these closed ecosystems. “Although this sort of thing has been placed in front of us as an option, the truth is that we have not been overtly pressured much at all, most probably because we are just not in a position to afford the media. When it has been suggested, I generally have no choice but to say, ‘Maybe later.’ It’s too expensive, and the quality of the message it wants to tell to its customers offers nothing unique to us as NOMU,” says Paul Raphaely, who is director at the South African food and lifestyle product range.
Retail media networks now dominate advertising by turning shopper data into targeted ad space. Amazon and Walmart Connect lead globally, while South African retailers catch up fast. Checkers (via Sixty60) and Pick n Pay (Smart Shopper) are building their own ad platforms, creating both opportunities and roadblocks for brands.
Real retail power is control
Reinders points out how tough negotiating ad spots within RMNs can be. “It’s a bit of a juggling act,” he says. “Retailers control the game, determining ad rates, placement options, and inventory availability. The lack of flexibility can be a problem if it doesn’t align with a campaign’s goals.”
Price structures remain murky. Retailers often package ad spots and charge extra for busy pages, without explaining how they set these prices. “Without competition or industry benchmarks, it’s a ‘take it or leave it’ scenario for many brands,” Reinders says.
Metrics without meaning
Transparency is another major concern. Many RMNs operate as “walled gardens,” controlling access to data and sharing only what suits them. “Retailers might provide basic metrics like impressions and clicks but withhold granular sales attribution data,” Reinders explains. “This makes it hard for brands to calculate true ROI.”
Limited access to performance data hampers campaign management. “Some networks don’t provide real-time insights, making it difficult to optimise campaigns on the go,” Reinders explains. While global platforms like Amazon offer self-service tools, South Africa’s RMNs are still developing these capabilities. Takealot is leading the charge with its self-service offering, but for many brands, the options remain limited.
Brands are finding ways to work within these constraints. Some build ongoing relationships with retailers, folding ad packages into larger trade agreements. “A retailer could promote their private-label products over a supplier brand’s ads, even if the supplier is paying for prime placement (not saying they do, but they could). Or, they could use aggregated sales data to develop competing products,” says Reinders.
Conflict and compromise
He goes on to note: “This conflict has been highlighted with Amazon, where sellers have accused the platform of using their sales data to create and promote AmazonBasics products. Locally, this issue hasn’t been as prominent yet, but as South African retailers scale their media networks, it’s something that supplier brands will need to monitor closely.”
Reinders adds that some brands are pushing back, demanding clearer performance metrics and ROI guarantees. “The more data-driven brands become, the better they can justify — or challenge — the spend,” Reinders says.
Raphaely acknowledges the growing power of retailers like Checkers but argues that smaller brands must be resourceful. “Retailers can only really extract value from major brands. For challenger brands, covering normal rebates, listings, and promotions is all we can do,” he says.
Freedom of choice
When it comes to fairness and transparency, Raphaely takes a pragmatic view. “Advertising on any platform is never obligatory. Brands have to decide where their marketing Rands should be spent. If retailers are abusive, brands will vote with their feet.”
As RMNs expand, both Reinders and Raphaely stress that brands must stay data-focused and push for transparency. “Don’t be afraid to ask for detailed campaign reports and question pricing structures,” Reinders advises. “Building relationships with retailers and their media teams can also make negotiations easier.”
For smaller brands, the challenge is to find alternative routes to reach consumers. “The real crime is the loss of the 30-second storyteller,” Raphaely laments. “Retail advertising has reduced messaging to deal discounts and price promotions. That’s not worth talking about around a braai.”
Retailers do and don’t respond
MarkLives MEDIA approached the Competition Commission to see if complaints were laid against retailers related to RMN. The ombud confirmed none exist to date.
MarkLives contacted Shoprite, Woolworths, Spar, and Pick n Pay for comment. Only Spar responded.
A Spar spokesperson tackled concerns about price and metrics transparency: “The Spar RMN rate card is structured to reflect all elements of our comprehensive end-to-end offering. This includes creative design, production and warehousing, in-store execution, and post-campaign reporting.” The spokesperson added that suppliers can access these elements in real time through Spar’s RMN.
The spokesperson explained that data drives product visibility. “Objective data analytics determine the range and forward share for each store,” the spokesperson said. The retailer offers a secondary brand amplification opportunity in-store, ensuring that participation remains an option rather than a necessity. On data handling, Spar confirmed all information follows Protection of Personal Information Act rules, with strong security protecting both personal and business data.
The Consumer Goods Council declined to comment on any issues related to RMNs.
Trend becomes truth
The growth trajectory of retail media networks in South Africa mirrors global trends, according to Joe Steyn-Begley, managing director at Carbon1, a martech and adtech specialist firm. “Retail Media is projected to become the third largest advertising channel in 2025, behind TV and Digital Media, with global spend reaching a staggering $166bn, up from $46bn in 2023,” says Steyn-Begley.
He attributes this growth to the explosion of e-commerce, which has provided retailers with opportunities to monetise digital assets and first-party data, made more valuable by the decline of third-party cookies.
Ultimately, the rise of RMNs reflects broader shifts in the media landscape. As traditional advertising channels lose effectiveness, retailers are stepping in to fill the gap. For brands, the key is caution, ensuring that their investments deliver value — not just for their bottom line but for their brand’s long-term growth.
As Reinders puts it, “Retail media networks are still in their early stages in South Africa, but they’re growing fast. The key is to tread carefully and ensure you’re getting value for your investment.”
Charles Lee Mathews is a senior editor to MarkLives MEDIA and a senior writer to MarkLives.com, as well as co-founder of The Writers, a writing consultancy.
