Microsoft is reportedly preparing a decision to shut down PromoteIQ, its retail media business. The speculation has left many retailers scrambling to find suitable alternatives.

While this move comes five years after Microsoft acquired the platform in August 2019, it reflects an alteration in Microsoft’s retail media advertising strategy. Although Microsoft has yet to officially announce the closure, insiders hint that this decision highlights the growing need for retailers to find more sustainable and flexible ways for their onsite advertising needs.

With PromoteIQ’s imminent closure, retailers are left with one key question: What’s next?

End of an era

PromoteIQ’s initial promise was being a first-to-market retail media player, allowing retailers to monetize their digital assets through onsite ads.

These ads, integrated into a retailer’s website or app, have become essential for driving growth and profitability, with onsite advertising contributing 70-90% of retailer profit margins according to a report from BCG.

Jason Goldberg, chief commerce strategy officer at Publicis Groupe, recently told Digiday, “We’re pretty much in the second or third inning in the evolution of retail media networks.”

He noted that companies like Microsoft shouldn’t expect each segment of their retail media business to be a high-margin venture; rather, they must view these services as part of a broader strategy for overall growth.

“In-Housing” retail media

One of the key lessons from PromoteIQ’s shutdown is that retailers are increasingly looking to bring their media operations in-house. Rather than relying on external platforms, retailers are opting to build resilient, customizable ad solutions that give them greater control over their advertising ecosystems.

Costco recently answered the call to invest in its own architectures that are not at the mercy of third-party platform decisions, building its retail media network by giving brands a way to reach millions of members.

Mark Williamson, AVP of retail media at Costco told Marketing Brew, "Not only will we help you reach a Costco member, we will help you reach the right members in the right context based on past behavior.”

Retailers who relied on PromoteIQ now face a critical decision: find a new platform that offers greater flexibility and adaptability or risk being left behind in the retail media.

AdButler solves your retail media advertising needs

As PromoteIQ customers seek continuity, AdButler presents a natural alternative. Whether you're a small e-commerce boutique or large retailer, chances are you’re likely looking for efficiency in your audience targeting, a comprehensive analytics dashboard, and total control over your ads—all on a user-friendly platform.

AdButler leverages your first-party data to connect with the right shoppers, ensuring your ads reach those most likely to convert. The result? Better ad optimization = more business for you and your partners = more revenue. Curious how we achieve this?

Our unified platform allows seamless management of various ad formats and sponsored listings. With our self-service marketplace, advertisers can easily log in, create campaigns, bid, and complete payments. Our powerful APIs enable integration with any OMS and streamline data reporting to third-party systems, while also supporting custom interfaces, workflows, and dashboards.

With AdButler, you also can integrate your own data management platform, while also gaining valuable insights into targeting and purchase intent for your campaigns. Amazing right? Well, as we enter the third wave of digital marketing, it would be a shame if Amazon and Walmart turned out to be the only winners of retail media’s 80% revenue market.

Let’s talk and find out how we can maximize your ad revenue.