10 problems with Retail Media and how to solve them

June 24, 2025
The 10 Faults of Modern Retail Media

Struggling with retail media performance? You’re not alone.

Modern retail media platforms like Instacart Ads, Walmart Connect, and Amazon DSP promise high returns — but many brands are seeing the opposite: wasted spend, unclear ROAS, and no SKU-level insights.

In this deep-dive, we expose the 10 biggest mistakes brands make with retail media, including:

  • Relying on delayed, siloed dashboards

  • Missing real-time SKU performance

  • Ignoring creative fatigue

  • Treating Instacart, Walmart, and Target ads as separate strategies

  • Trusting platform metrics without validation

If you’re a CPG brand, growth marketer, or eCommerce team wondering why your retail media ROAS is stuck, this is your wake-up call.

A high click-through rate (CTR) might make your retail media dashboard light up, but if those clicks don’t convert into actual sales, you’re just paying for attention — not action.

CPG Reality Check:
That $4.50 you spent to get someone to click on your sparkling water ad? They added a competitor to cart. Ouch.

The problem: Most platforms like Instacart or Amazon optimize toward CTR by default, not purchases. That means your ad might show up in flashy positions but never lead to a transaction.

Fix it:
Shift from impressions and clicks to SKU-level conversion. A retail media platform like RMIQ ties ad spend directly to product-level sales — so you know exactly what’s working and what’s window dressing.

Retail media is not something you launch and leave. Yet many brands do just that — especially with limited teams or when managing multiple channels.

The danger: In a volatile market, pricing, competition, and inventory status can change by the hour. If your bids don’t evolve, your ad performance tanks fast.

Example:
A Target Roundel ad set up last quarter might still be running full speed on a SKU that’s now out of stock in half your regions.

Fix it:
Automate with intelligence. RMIQ uses live data and AI to adapt campaigns in real-time — shifting bids, pausing underperformers, and reallocating budget with zero lag.

Not all products are created equal. Some are your brand heroes, others are margin-eaters. But many retail media platforms don’t let you go granular enough to tell them apart.

The cost: If your ad budget is spread equally across every SKU, you’re spending money to promote products that don’t convert — while underfunding your winners.

Example:
Your new beard oil is flying off shelves — but your ad spend is still going toward an old face scrub that’s dying on the vine.

Fix it:
RMIQ breaks down campaign performance by SKU, retailer, and region, so your top products get top support — automatically.

Retail media platforms typically offer data with a 24–72 hour lag. That means you’re making decisions today based on what happened two days ago.

The result: By the time you realize your Instacart campaign is overspending or your Walmart Connect bid is too low, the damage is done.

Fix it:
Real-time performance data is non-negotiable. RMIQ syncs data from all major platforms and delivers live insights — so your team can react before the budget bleeds.

“10x ROAS!” sounds great… until you learn it’s based on a $50 spend.

The trap: Teams chase easy ROAS wins by targeting low-competition, low-scale products — while avoiding bigger, riskier opportunities that could actually move revenue.

Fix it:
Normalize ROAS with context — volume, margin, and scale potential. RMIQ helps you focus on real growth, not feel-good stats.

Running campaigns across Instacart, Walmart, Amazon, and Target shouldn’t feel like spinning plates. But without unification, it does.

The problem: Each platform has its own dashboard, data format, and rules. Managing it all manually wastes hours and multiplies human error.

Fix it:
RMIQ acts as your command center, letting you run, adjust, and report across platforms in one place — no more platform-hopping.

Retailers give you dashboards that look great. But they only show their side of the story — and their definitions of success.

The issue: You end up trusting biased metrics, missing anomalies, and making decisions without cross-checking.

Fix it:
RMIQ normalizes and validates data across all retail media networks — giving you a true, independent performance view.

Running the same creative for six weeks on Instacart? Expect diminishing returns.

Ad fatigue is the silent killer of performance. But most brands don’t have a system to rotate assets or test creative variations.

Fix it:
With RMIQ, you can A/B test creative, measure decay, and get alerts when your ad performance starts slipping — before it hits the floor.

Your budget should move with your momentum. But most retail media plans lock in spend at the beginning of the month — regardless of performance shifts.

The result: Breakout SKUs don’t get the fuel they need. Poor performers keep burning money.

Fix it:
RMIQ dynamically reallocates budget in real-time, based on SKU-level demand, margin, and competition — so every dollar moves the needle.

Retail media isn’t a checkbox. It’s an ecosystem. But many brands treat each platform like a separate channel, with no unified view of what’s working overall.

The gap: There’s no learning loop, no strategic alignment between teams, and no clear growth roadmap.

Fix it:
RMIQ is not just a tool — it’s a strategic engine that connects the dots between products, platforms, and performance. One view. One logic. One growth strategy.

Retail media is too powerful — and too expensive — to run blind.

If you’re tired of guessing, juggling dashboards, and celebrating fake wins, maybe it’s time to upgrade from tactics to strategy.

Fix the 10 faults. Build your edge. Today.

Meet us for a free session to learn more how to double your Retail Media ROAS with RMIQ - Retail Media Intelligence powered by AI.​

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