Shifting Dynamics: From Search to Full-Funnel
According to WARC Media’s latest forecast, the global retail media market is on track to reach nearly $200 billion by 2027. While this represents substantial growth, the pace is slowing compared to previous years. The industry is transitioning from a focus on lower-funnel, search-dominated advertising toward more comprehensive full-funnel strategies. This includes expanding investments in display advertising, off-site channels such as connected TV (CTV) and digital out-of-home (DOOH), as well as in-store media solutions. Additionally, the rise of quick-commerce is becoming a significant driver of retail media growth, offering new opportunities for targeted, timely ad placements.
AI and Amazon: Key Drivers of Change
The rise of Agentic AI commerce is poised to reshape how consumers interact with retailers and how retail media monetization is approached. This emerging technology enables more personalized and efficient shopping experiences, directly impacting advertising strategies. Amazon remains a dominant force in this space, expanding its retail media network through a robust full-funnel approach. Its Demand-Side Platform (DSP) has grown remarkably, allowing advertisers to reach extensive audiences across multiple channels beyond traditional e-commerce platforms. Amazon’s influence continues to drive innovation and competitiveness in the retail media ecosystem.
Adapting to a Maturing Market
For retailers and brands, the evolving retail media landscape necessitates strategic shifts. Traditional return on ad spend (ROAS) metrics may no longer suffice as the sole measure of success. The market is consolidating, with fewer retail media networks capturing larger shares, pressing retailers to evolve into full-funnel commerce platforms. As growth rates stabilize, embracing innovation, particularly around AI-driven solutions, becomes increasingly important. Retailers and brands must consider diversified strategies to remain competitive and capitalize on new media formats and consumer engagement opportunities.
