Retail media networks (RMNs), retailer-owned advertising platforms, are rapidly transforming commerce by leveraging first-party data, omnichannel reach, and closed-loop measurement. In 2025, retail media spending surpassed linear TV, with projections reaching $175 billion globally by 2028, led primarily by the U.S. However, growth is limited by finite onsite inventory and traffic, prompting the need for scale and reach beyond retailers' owned channels.
TikTok's Role in Retail Media
TikTok extends RMNs' reach by connecting them with unique communities, enhancing value for brand partners and driving measurable results both on and off the platform. Retailers like Walmart Connect and Ulta Beauty use TikTok to engage shoppers at all funnel stages, combining cultural relevance with performance.
TikTok Solutions for Retail Media Performance
TikTok offers commerce solutions that enable seamless shopping experiences, allowing users to discover, browse, and buy across various touchpoints. The platform collaborates closely with RMNs and brands to tailor strategies, launch campaigns confidently, and optimize for growth.
Brands benefit from TikTok’s full-funnel ad products, which deliver a 1.9x higher purchase lift when combining mid- and lower-funnel objectives compared to lower-funnel alone. Campaigns typically start with In-Feed Ads for awareness, followed by Catalog Ads, Search Ads Campaigns, and Web Conversion and Traffic ads to capture demand. TikTok’s AI-powered automation tool, Smart+, helps maximize return on ad spend (ROAS) across key objectives.
Creative and Data Tools
TikTok emphasizes creator-powered storytelling through tools like TikTok One and modular creative packages, fostering creativity and engagement at scale.
Strong data connections are vital for campaign optimization. RMNs can use first-party solutions such as TikTok Pixel and Events API for precise targeting and real-time optimization. For advanced needs, data clean rooms offer privacy-safe environments for audience matching and customized measurement, turning closed-loop insights into expanded opportunities.
Measurement and Reporting
TikTok recently launched brand-level reporting via API and TikTok Ads Manager, enabling retailers to access granular, real-time data on revenue and conversions by brand. This supports RMNs in scaling confidently and realizing the full potential of video-powered commerce.
Case Study: Ulta Beauty
Ulta Beauty’s retail media network, UB Media, ran multi-brand campaigns during the holiday season using TikTok trends and In-Feed Ads with Web Conversion objectives. These campaigns achieved a 40% better ROAS than UB Media’s benchmark and generated over one million purchases. The top-performing creative nearly tripled the benchmark ROAS.
TikTok enables RMNs and brands to create culturally relevant, full-funnel advertising experiences that drive commerce beyond traditional retail media channels.
