The 'Effort Heuristic' In Retail Media

What makes one retail media network stand out when so many seem to promise the same thing? In this episode, I explore a fascinating psychology concept called the 'effort heuristic', and explain why it has huge implications for retail media. When buyers can't easily judge technical quality, they look for visible signs that a retailer is investing, innovating, and genuinely building something worthwhile.I also share why transparency can become a competitive advantage, highlight Costco's retail media strategy as a standout example, and discuss where the line is between showcasing meaningful progress and creating announcement fatigue. If you're building, selling, or buying retail media, this episode offers a fresh perspective on what actually influences decision-making before performance data ever enters the conversation.This episode is sponsored by GrowthLoopTimeline[00:00] The psychology study behind the effort heuristic, and why perceived effort influences perceived quality.[01:47] How the effort heuristic applies to retail media buyers evaluating competing retail media networks.[03:19] Why Costco's transparent approach to its retail media tech stack stood out, and what other retailers can learn from it.[05:43] The danger of over-marketing: when every product update becomes an "industry-first" announcement.[06:33] Why the largest retail media networks play by different rules than emerging RMNs competing for test budgets.[07:21] My advice for retailers and technology partners: show your work, earn credibility, and build trust through transparency.Links & ResourcesThe Effort Heuristic by Kruger, Wirtz, Van Boven and Altermatt.Read my related articles:Costco Is The First US RMN To Reveal Its Entire Tech StackWhy RMNs Keep Their Tech Stacks SecretThe ‘Costco Velocity’ Tech Stack Is Coming Together. Here's How the Pieces Fit.Check out Basket Case, a project I’m part of with The Drum and QSIC, an irreverent and lively podcast series talking shop: latest episodeI'm sharing comedy skits on Instagram about retail media! Follow along: @retailmediabreakfastclubSubscribe to Retail Media Breakfast Club's daily newsletterFollow Kiri Masters on LinkedIn