Introduction
Retail media has moved from breakneck growth to a more measured phase. Heavy reliance on bottom-funnel search is showing diminishing returns. Brands that reframe their approach now will protect spend efficiency and unlock longer term growth.
Beyond Search: Embracing Full-Funnel Retail Media
Search ads win when demand is explicit, but they cannot create it. Over-indexing on bottom-funnel tactics compresses reach and inflates costs as competitors bid harder. Top-funnel activities like off-site video, streaming placements, and prospecting display build awareness and increase convertible traffic into retailer sites. Integrate these tactics so discovery feeds search volume and lowers acquisition cost over time. Measure beyond immediate ROAS by tracking view-through conversions, assisted conversions, and brand lift to see how upper-funnel investment supports downstream sales.
Strategic Diversification: Networks, Formats, and Budgets
Smart Network Choices
Concentrate spend where scale and audience match are strongest. Large RMNs such as Amazon and Walmart should get a meaningful share for reach and measurement maturity. Expand selectively to specialist or regional retailers when their shopper profiles align with your targets. Use holdout tests and incrementality studies before committing budget to many smaller networks. Avoid spreading dollars so thinly that none of your channels reach a performance threshold.
Prioritizing High-Impact Formats
Cheaper units do not always create value. Allocate a test pool to higher-impact formats like streaming video and CTV where attention and storytelling lift conversion rates on retailer pages. Combine these with targeted display and social prospecting to build mid-funnel interest. Keep sponsored products and search as conversion drivers, but pair them with creative, measurement, and audience signals from video and off-site tactics to protect ROAS over time.
Conclusion
Retail media success in a mature market requires adaptability. Rebalance budgets toward full-funnel programs, pick networks with scale and audience fit, and favor formats that build demand as well as conversions. Use incrementality and multi-metric measurement to guide investments and sustain ROI.
