How SEA’s Retail Media Networks Are Reshaping Digital Ads

Advertising costs $8-15 per install on Instagram. SEA is flipping this script by turning retail media networks into a US$3 billion monetisation engine by 2025. Google, Temasek, and Bain & Company spotlighted this in the e-Conomy SEA 2025 report. But this surge isn’t about more ads—it’s about leveraging first-party data to convert intention into profit.

Buy audiences, not just products—the asset compounds.

The fallacy of broad branding in SEA’s digital media

Conventional wisdom holds that scaling audience reach is the primary growth lever in emerging markets like SEA. Many companies still chase views over conversions, relying on mass ads on platforms like Instagram or YouTube. Yet, this approach ignores a critical constraint: low ad depth. With SEA marketplaces delivering just 2% of gross merchandise value (GMV) from ads versus 7% in China, raw reach is a leaky bucket.

Instead, what operators need is constraint repositioning—shifting from generalized exposure to precision targeting using retail media networks (RMNs). This repositions the bottleneck from acquiring eyeballs to activating purchase intent. For context, see how AI transforms ad efficiency in mobile settings here.

First-party data: The silent engine behind SEA’s RMN growth

Retail media networks capitalize on the unique leverage of first-party shopper data in a privacy-first age. Unlike broader platforms that depend on third-party cookies or probabilistic data, RMNs know exactly when users are poised to buy. This turns ad spend from branding exercises into direct conversion tools, radically improving return on investment.

For example, SEA’s RMN ad depth (2% of GMV) remains far below China’s 7%. Closing this gap means a potential US$10+ billion growth runway for ad-supported commerce. Unlike competitors focused on video views or short videos—which declined 15% active users—RMNs are building compelling ecosystems that compound value without constant incremental spend. This strategic leverage closely mirrors the system design shifts analyzed in WhatsApp’s chat integration.

Gaming and short dramas: SEA’s content ecosystem operating system

While advertising monetisation captures headlines, gaming and short drama formats unlock consumer engagement that powers RMN effectiveness. With gaming engagement rising from 56% to 59%, and short dramas exploding +200% active user growth, these formats create captive, monetisable audiences within platforms.

Chinese and local players are aggressively investing to develop this new entertainment+commerce stack, breaking classical format silos. This aligns with system-level leverage seen in media pivots by giants—reminiscent of how OpenAI scaled ChatGPT to one billion users by embedding itself into diverse workflows here.

Why SEA’s RMNs set the stage for the next digital media frontier

The real constraint that shifted is the move from broad branding budgets to data-driven conversion engines. For advertisers and marketplaces, this enables a self-reinforcing loop: better targeting leads to higher returns, which justifies more first-party data collection and deeper marketplace integration.

Stakeholders in ASEAN-10 countries should prioritize building these RMN infrastructures now, as replicating China’s RMN growth demands years of data curation and marketplace trust-building. This investment changes the rules of engagement for brands, retailers, and platforms.

SEA’s digital media surge shows a clear truth: The winner controls first-party data and converts intent, not just impressions.

Related Tools & Resources

As SEA's retail media networks are changing the landscape of digital advertising by leveraging first-party data, tools like Hyros can help advertisers track their ad performance and optimize conversions. With advanced analytics and attribution features, Hyros enables businesses to transform data into actionable insights, helping them fully capitalize on their advertising investments. Learn more about Hyros →

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Frequently Asked Questions

What are retail media networks (RMNs) in SEA?

Retail media networks in SEA leverage first-party shopper data to deliver highly targeted advertising within online marketplaces, enabling better conversion rates compared to broad branding efforts.

How much revenue are SEA's retail media networks expected to generate by 2025?

SEA's retail media networks are projected to become a US$3 billion monetisation engine by 2025, driven by their ability to convert purchase intent more effectively than traditional ads.

Why is first-party data important in SEA's digital advertising?

First-party data allows advertisers to target users precisely when they are ready to buy, improving return on investment by converting ad spend directly into sales rather than mere brand impressions.

How does SEA's ad depth from RMNs compare to China?

SEA marketplaces currently deliver just 2% of gross merchandise value from ads via RMNs, compared to 7% in China, highlighting significant growth potential in SEA's ad-supported commerce.

What role do gaming and short dramas play in SEA's content ecosystem?

Gaming and short dramas create highly engaged audiences in SEA, with gaming engagement rising from 56% to 59% and short dramas seeing over 200% active user growth, powering retail media network effectiveness.

How are companies like Google and Temasek involved in SEA's RMN growth?

Google, Temasek, and Bain & Company highlighted SEA's RMN potential in the e-Conomy SEA 2025 report, emphasizing the shift from broad branding to data-driven conversion strategies.

What is the main difference between traditional digital ads and SEA's RMN ads?

Traditional digital ads often focus on broad audience reach and impressions, whereas SEA's RMN ads use precise first-party data targeting to convert purchase intent directly, leading to higher ROI.

What tools can help advertisers optimize their campaigns in SEA's retail media networks?

Tools like Hyros provide advanced analytics and attribution features that help advertisers track performance and optimize conversion rates within SEA's retail media ecosystems.