Retail Media Loyalty Programs are evolving again. By integrating mobile gaming mechanics and non-endemic offerwalls into loyalty ecosystems, retail media brands are creating new ways for users to earn, engage, and spend.
This shift showcases how gamification drives loyalty in retail media environments by creating more reasons for users to return, engage, and spend, while also fueling monetization through rewarded experiences.
In this article, we’ll go over what makes a successful retail media experience through gamification and how brands are driving incremental revenue and transforming loyalty programs into self-sustaining growth loops.
Why Loyalty Programs Need Retail Media Gamification
Traditional retail media in loyalty programs focused mainly on discounts and points. But users (especially Gen Z) now expect interactive, gamified experiences. Retailers facing thinner margins can no longer rely on price cuts alone.
- Margin pressure: With shrinking retail margins, brands need loyalty programs to do more than give discounts; they must generate new revenue streams. Retail media gamification solves this by introducing non-endemic offers and advertiser-funded rewards, creating incremental revenue without sacrificing margin.
- Engagement gaps: Traditional “earn-and-burn” models drive sign-ups but not long-term activity. Gamified experiences keep users consistently engaged, turning loyalty into a habit rather than a one-time transaction.
- Influence on Consumer Behavior: According to Forrester’s Consumer Benchmark Survey, 2024, 54% of US online adults agree that loyalty programs influence what they buy. By layering in retail media gamification, like task-based rewards, premium offers, and interactive challenges, retailers can amplify this influence, ensuring customers not only buy once but keep coming back and spending more often.
That’s the power of gamified retail media loyalty programs: deeper loyalty, longer relationships.
By introducing a retail media strategy for brands that integrates non-endemic advertisers, loyalty programs become both an engagement engine and a revenue driver.
How Gamification Powers Retail Media Loyalty
Non-Endemic Offers as Loyalty Fuel
Retail media brands are no longer limited to promoting products they sell. By integrating non-endemic advertisers, like fintech apps, streaming services, or mobile games, loyalty programs create more opportunities for users to earn rewards without retailers cutting prices.
- Example: A convenience store app lets users earn loyalty points by completing a survey for a market research company or trying a cash-advance app.
- Impact: Users get more ways to earn → retailers capture ad revenue → loyalty engagement deepens.
Gamification Mechanics = Increased Engagement
Mobile gaming tactics (daily tasks, streaks, achievements, mini-games) are now core to Loyalty 2.0. They make engagement habitual.
- Data point: Gamified experiences can increase engagement by up to 47% and loyalty participation by 30%.
- Gamification taps into psychology: progress, reward anticipation, and micro-goals → sustained user activity.
Gamification mechanics transform retail media and customer loyalty into a daily habit. Users earn by completing tasks, trying apps, or playing mobile games. This approach proves how retail media drives loyalty through consistent engagement and a deeper emotional connection.
Incremental Revenue
Retailers benefit from monetization through gamification in two ways:
- Revenue from advertisers’ funding rewards. Every completed offer or ad interaction generates revenue from advertisers, turning the loyalty program into a profit center.
- Incremental purchases from users redeeming rewards inside the ecosystem. Rewards like cashback and points are redeemed in-app, nudging users to purchase again and again.
This dual model reinforces the idea that a modern retail media strategy for brands is not just about advertising, it’s a win/win loop: advertisers fund the rewards → users engage to earn them → retailers profit twice (ad revenue + incremental purchases). And because gamified rewards create stickier user behavior, this cycle compounds over time, driving higher retention, more frequent shopping, and sustained loyalty growth.
Loyalty as a Growth Channel, Not a Cost Center
The future of loyalty marketing lies in gamified ecosystems where retail media in loyalty programs creates a win-win for retailers and users. With AI-driven personalization, loyalty and retail personalization will ensure rewards feel relevant, while monetization through retail media offsets margin pressure and turns loyalty into a growth channel.
- U.S. retail media spend is projected to exceed $62B in 2025, rising to nearly $100B by 2027.
- Retailers that pair RMN revenues with loyalty gamification not only offset loyalty program costs but also transform them into net-positive revenue drivers.
- This competitive edge allows retailers to keep loyalty margins high without relying solely on price discounts.
Crafting a Retail Media Loyalty Strategy
- Integrate Non-Endemic Offerwalls – Expand your existing offers or affiliate section by adding advertisers outside your vertical. This creates new ways for users to earn loyalty currency without discounting your products, while unlocking incremental ad revenue for your brand.
- Gamify the Experience – Daily challenges, streak bonuses, and tiered rewards make engagement addictive.
- Close the Loop – Ensure rewards (points, cashback, discounts) are redeemable directly in your ecosystem → more in-app purchases.
Measure Incrementality – Track not just ROAS, but uplift in repeat purchases, reward redemption, and advertiser revenue streams.
Conclusion
Retail media gamification is the ultimate Loyalty hack. By merging premium offers, gaming tactics, and cashback rewards, retailers can create loyalty ecosystems that:
- Keep users engaged daily,
- Generate significant incremental revenue, and
- Future-proof their competitive edge in an era of shrinking margins.
Through engagement and monetization, retailers are now transforming their loyalty programs from cost centers into growth engines, and the brands that embrace this model will win, not just loyalty, but profitability.
Ready to turn your loyalty program into a profit engine?
Discover how to power your loyalty program through gamified and rewarded experiences. Talk with our team to learn how retailers are driving increased profitability with AdAction’s customizable and easy-to-integrate loyalty and monetization platform.
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