Retail Media’s Scaling Problem—and How Delivery Hero is Solving It

Retailers want in on retail media, but scaling isn’t as simple as flipping the switch.
The demand is there, and CPGs are ready to invest—but many retailers hit a wall when trying to grow beyond the basics. At Ecommerce Expo in Berlin a few weeks ago, our EMEA Sales Director, Emma Helsloot, sat down with Delivery Hero’s Barad Ramunajam to unpack what’s holding retailers back and how to break through.
Below, we break down their conversation into a few not-to-be-missed highlights from Barad on how retailers can tackle these challenges head-on.
What are the Biggest Hurdles RMNs Must Overcome to Scale?
Emma Helsloot: Scaling a retail media network isn’t a small task—especially for retailers that don’t have advertising in their DNA. What are the biggest hurdles RMNs must overcome to scale?
Barad Ramunajam: I’d categorize the challenges into two main areas: organizational and technological.
On the organizational side, retail media itself isn’t new, but its rapid growth in recent years has been unprecedented. The problem is that while the industry evolves quickly, many retailers struggle to evolve their internal structures at the same pace. What often happens is that existing teams try to expand their scope instead of building dedicated structures for advertising.
For example, category managers might take on ad sales responsibilities in addition to their usual tasks. While this may seem like an efficient approach in the short term, it creates long-term conflicts. For example—should you prioritize category revenue or media value? More often than not, media value gets undercut.
This raises key questions for retailers:
- What does a successful ad sales organization look like?
- What resources, skills, and processes are required?
- Should ad sales be outsourced?
On the technology side, the retail media boom has been driven largely by CPGs, which are sophisticated advertisers with high expectations. They demand advanced capabilities like biddable media, real-time reporting, and incrementality measurement.
Retailers then face another critical decision:
- Do they build their retail media stack in-house?
- Do they partner with technology providers?
- If they partner, which aspects should they outsource?
These decisions are pivotal in shaping the future of a retailer’s media business.
How Do You Strike the Right Balance Between Paid and Organic Placements?
Emma Helsloot: Customer experience is everything in e-commerce. The best retailers aim to seamlessly blend organic and paid results. How do you strike the balance between paid and organic placements?
Barad Ramunajam: The key is not to think of it as a trade-off. At Delivery Hero, we focus on how paid and organic placements work together to improve product discovery.
Of course, the first step is ensuring that advertising doesn’t disrupt the user experience. But beyond that, we’ve moved to actively measuring how ads enhance organic discovery. Here’s what has worked for us:
- Mapping the entire customer journey – We track every touchpoint, whether it’s organic or paid.
- Clearly defining KPIs – We establish metrics for each touchpoint to maintain guardrails and optimize the experience.
- Setting strict advertising guidelines – Across all the markets we operate in, we enforce standards to ensure a seamless, high-quality ad experience.
- Prioritizing experimentation – We constantly test different ad placements and formats to find the optimal balance.
When done right, ads don’t just generate revenue—they help customers find what they’re looking for faster. That’s the ideal outcome: a win for both users and advertisers.
How Do You Ensure Ad Relevance While Maximizing Fill Rates?
Emma Helsloot: A lot of the discussion around retail media is about balancing relevance with scalability. What’s your approach to keeping ads relevant while maximizing fill rates?
Barad Ramunajam: That’s a two-part challenge:
- How do we ensure better ad quality and relevance?
- How do we maximize fill rates while maintaining or improving quality?
On the relevance side, retail media networks have a built-in advantage: context. We know what users are searching for, which categories they’re browsing, and what they’ve previously purchased. That context allows us to serve hyper-relevant ads.
On top of that, we leverage first-party data and machine learning models to predict affinities for specific brands or products, adding another layer of personalization.
Beyond personalization, ad quality also depends on factors like:
- Product availability – Avoiding ads for out-of-stock items.
- Creative assets – Ensuring high-quality visuals and messaging.
- Metadata accuracy – Making sure ads align with search queries and customer intent.
As for scalability, our vision is to move toward a more Fluid layout with Pentaleap. Today, advertising is confined to specific slots—like the first three placements in search results or fixed banner locations. But in an ideal world, every user would see a personalized layout based on their preferences and behavior. This approach not only enhances engagement but also improves the overall shopping experience.
Retail media isn’t just about selling ad space—it’s about unifying retail, media, and customer experience in a way that benefits everyone involved. The retailers leading in this space are investing in technology that seamlessly integrates these elements rather than forcing them to compete.

Final Thoughts
The conversation with Delivery Hero highlighted that scaling retail media isn’t just about implementing the right technology—it’s about building the right organizational structure, ensuring advertising and organic discovery work in harmony, and leveraging personalization to create a seamless user experience.
Delivery Hero’s approach offers valuable lessons for retailers looking to scale their media businesses:
- Dedicate proper resources to ad sales rather than stretching existing teams too thin.
- Leverage first-party data to enhance personalization and relevance.
- Invest in experimentation to refine ad placement and balance paid vs. organic results.
- Think beyond fixed placements toward a more dynamic, personalized experience.
As retail media continues to grow, the retailers who master these elements will be the ones who win—not just in ad revenue but in customer experience and long-term brand loyalty.
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