The Shifting Landscape of Retail Media
The retail media sector is undergoing significant changes as the global growth rate experiences a temporary dip, yet Amazon projects substantial gains that will continue to outpace competitors. New players are entering the market, creating a dynamic environment where innovation and strategic positioning are key drivers.
Amazon’s Strategic Edge: The DSP
Amazon’s distinctive Demand-Side Platform (DSP) underpins its consistent 15%+ year-over-year growth in retail media. Unlike Walmart’s custom DSP and many retail media networks relying on third-party platforms, Amazon’s bespoke DSP offers unmatched control and integration for advertisers. Around 20% of Amazon’s advertising investment now flows through its DSP, doubling within two years and signaling a commitment to programmatic, data-driven campaigns that optimize efficiency and reach.
Beyond On-Site: The Off-Site Imperative
While on-site advertising like sponsored products remains important, off-site retail media is accelerating at a faster rate. Amazon capitalizes on this trend by partnering with publishers, social platforms, and streaming services to extend advertising reach beyond its own ecosystem. This strategy facilitates upper-funnel brand awareness and drives consumer engagement outside traditional retail environments.
Implications for Brands and Retailers
Advertisers increasingly demand campaigns that transcend the limitations of “walled garden” ecosystems, seeking fluid and efficient approaches. DSPs play a pivotal role by offering flexibility and access to multiple inventory sources, enabling brands to diversify and optimize their ad spend. For competing retail media networks and brands, the strategic takeaway is clear: developing or integrating robust DSP capabilities and expanding into off-site media channels are essential to remain competitive and meet evolving advertiser needs.
