In his latest column, Dean Harris, Head of Co-op Media Network, believes that with a more inclusive measurement, Retail Media Networks can move from being a tactical player to a strategic partner and go toe-to-toe with any channel.

Is Closed-Loop Measurement Too Closed?

Retail media networks (RMNs) have made “closed-loop measurement” their calling card. It’s a powerful tool - tying ad exposure to actual sales and proving that advertising pounds turn into purchases. But there’s a nuance that often gets overlooked: when RMNs report on metrics like “new to brand,” what they really mean is “new to brand at this retailer.” It doesn’t quite sound as impressive, does it? Because calling it that is alluding to a weakness in closed loop measurement.

The Limitations of Closed Loop

Closed-loop measurement is brilliant for showing immediate returns within a retailer’s ecosystem, but it’s also restrictive. It doesn’t account for the broader shopping landscape. Shoppers don’t just buy from one retailer; they switch, explore, and compare. According to Kantar data, the average shopper visits five grocery facias in a month.

What looks like a win on a retailer’s report could be neutral when viewed at market level for a brand. It’s like finding a £20 note on the floor, only to realise later it fell out of your own pocket. Gains within one retailer might mask a loss elsewhere. That’s where the current state of retail media measurement falls short it’s too inward-facing, and brands know it.

Beyond the Four Walls: Co-op's Halo Effect

This is why Co-op’s Circana halo analysis is so compelling. It shifts the focus from a narrow view to a market-level lens, assessing how campaigns drive brand sales across the entire landscape - not just within the confines of our stores. This analysis points to a future where RMNs aren’t just chasing in-store conversions but are contributing to brands’ overall market growth. It’s a true media owner mindset, one that understands that what happens inside our media ecosystem must ripple out.

When brands invest in non-retailer channels, they expect market-wide impact. Brands advertising on TV don’t just measure sales in one retailer, they measure the holistic effect. RMNs need to meet that expectation if they want to be taken seriously as more than just another conversion tool.

Evolving Measurement: The Path Forward

If we want RMNs to step out of the short term, conversion-only corner, we need to rethink measurement. Retail media measurement should evolve to include broader, market-level metrics that show true impact. This means partnering with independent analytics firms and developing methodologies that reveal how RMNs contribute to brand health and growth on a larger scale. We need to look beyond just ‘new to brand [at this retailer]’ and consider ‘new to brand [in the market]’.

Brands have enough data silos; they don’t need another one. What they need is a clear, cohesive story that shows their investments are paying off beyond one retailer’s footprint. RMNs have the data, the traffic, and the reach. Now it’s time to expand our view and prove we can play in the wider media landscape.

More Than Just Conversion Media

The future of retail media depends on this evolution. If we stay trapped in a closed loop, we’ll limit our potential and risk being pigeonholed as conversion-only media. But by pushing for broader, more inclusive measurement, RMNs can move from being a tactical player to a strategic partner. The goal isn’t just to show that we can convert - it's to prove that we can influence the market.

It’s time to break out of the loop and show that retail media can go toe-to-toe with any channel, proving value not just across a closed set of tills but across all tills - the brand’s entire market.

Dean will be writing a column for MAD//Insight throughout the year.