Hightouch and Databricks join forces to transform retail media with AI-powered audience management

The retail media landscape has witnessed exponential growth in recent years, with retailers striving to capture a share of the lucrative advertising market. In a groundbreaking move to empower retail media networks (RMNs), Hightouch, a leader in composable customer data platforms (CDPs), has partnered with Databricks, a prominent data and AI company, to unveil a cutting-edge self-service AI-powered audience management solution.

This innovative platform, called Hightouch for Offsite Media Networks, promises to revolutionize how retailers build, activate, and monetize custom audiences by leveraging the power of artificial intelligence. Designed to integrate seamlessly across over 50 media channels, this solution aims to help retailers compete more effectively with industry giants like Amazon, Walmart Connect, and Roundel.

Addressing Retail Media Challenges

Retail media networks have become an essential revenue driver for retailers, offering brands an opportunity to reach audiences at scale. However, the competition to attract premium advertising dollars remains fierce, especially as companies struggle with fragmented tools and limited access to advanced data intelligence.

Tejas Manohar, Co-CEO of Hightouch, stated that the partnership with Databricks addresses a critical need for scalable, flexible, and fast audience management solutions tailored to offsite campaigns. He highlighted that the integration of Hightouch’s intuitive self-service tools with Databricks’ robust data intelligence platform enables retailers to quickly create and deploy custom audiences while optimizing ad spend.

Rob Saker, Global VP of Retail at Databricks, added that retailers who can harness AI-powered insights from first-party data hold a distinct advantage in attracting advertisers. The solution, he explained, not only simplifies audience creation but also enhances personalization and ensures unified governance across data operations.

Unveiling the AI-Powered Solution

Hightouch for Offsite Media Networks offers an end-to-end solution that is fully integrated with a retailer’s existing cloud data warehouse. This warehouse-native audience management system enables retailers to use first-party data—such as purchase history, loyalty metrics, and behavioral insights—to craft highly targeted custom audiences.

The platform’s predictive targeting capabilities, powered by Databricks’ AI tools, allow retailers to generate actionable insights. These insights can be syndicated across multiple media channels, ensuring campaigns reach the right audience at the right time. Additionally, the platform supports seamless integration with over 50 media platforms, including major players like The Trade Desk, Meta Ads, and Google Ads.

To make the solution accessible to a wide range of retailers, Hightouch and Databricks have introduced an unbundled pricing model. This flexible approach enables retailers to adopt the tools they need without committing to unnecessary features, making it easier to scale their capabilities over time.

A Competitive Edge for Retailers

The retail advertising space is no longer dominated solely by e-commerce giants. Hightouch and Databricks’ collaboration empowers smaller and mid-sized retailers to leverage advanced data analytics and AI to compete for advertising budgets. By enabling AI-driven audience targeting, the solution enhances a retailer’s ability to deliver personalized campaigns, a key factor in attracting premium advertising partners.

Retailers already utilizing the platform have reported significant improvements in audience reach and revenue generation. For example, major retail media networks, including one of Europe’s largest e-commerce players and a global delivery service, are successfully using the solution to activate and measure custom audiences across offsite channels.

Future of Retail Media Networks

The introduction of AI-powered audience management tools marks a pivotal moment for the retail media industry. As advertisers increasingly demand measurable outcomes and high-performing campaigns, retailers must embrace data intelligence and personalization to stay ahead. Hightouch and Databricks’ partnership is expected to set a new standard for RMNs, offering a scalable and profitable solution tailored to today’s competitive advertising landscape.

The partnership also reflects broader industry trends, such as the shift towards leveraging first-party data in response to growing privacy concerns and the decline of third-party cookies. With its emphasis on transparency and control, Hightouch for Offsite Media Networks aligns perfectly with these evolving dynamics, making it a valuable tool for retailers looking to future-proof their operations.

Expert Perspectives

Industry experts have hailed the collaboration as a transformative step for retail media networks. Analysts note that platforms like Hightouch for Offsite Media Networks not only improve campaign efficiency but also open new revenue streams for retailers by tapping into previously untapped advertising budgets. By simplifying the process of audience creation and activation, the platform enables retailers to focus on strategic growth rather than operational challenges.

Moreover, the use of AI to enhance audience targeting ensures that retailers can offer highly differentiated solutions, setting them apart in an increasingly crowded market.

The partnership between Hightouch and Databricks represents a significant leap forward in the evolution of retail media networks. By combining the strengths of AI, first-party data, and intuitive self-service tools, the solution empowers retailers to unlock new opportunities in audience monetization and personalized advertising.

As the retail advertising landscape continues to evolve, this collaboration underscores the importance of innovation and adaptability in staying competitive. Retailers leveraging Hightouch for Offsite Media Networks are well-positioned to thrive in this dynamic environment, delivering value to advertisers and consumers alike.