Amazon is dominating the Retail Media market, with 86% of marketers using its platform, up 9% from 2024.
- 87% of marketers allocate some ad budget to Amazon.
- 37% spend a “large or very large” portion.
Other retailers, like Walmart and Target, are losing ground.
The Challenge for Walmart and Target
Walmart’s usage dropped to 34%, while Target fell to 14%.
- Walmart’s ad investment fell to 45% from 50%.
- Target’s Roundel platform saw a drop to 24% from 40%.
Despite efforts to compete, Amazon remains the go-to platform.
Growth Hurdles
Economic concerns are a major obstacle.
- 56% of marketers cite cost as a barrier.
- 38% blame high media costs.
- 18% point to limited budgets.
Lack of transparency in negotiations and a fragmented ad ecosystem also concern advertisers.
Future of Retail Media
The Retail Media sector is growing steadily.
- Amazon leads, but lacks unified standards.
- Economic challenges may open doors for competitors.
To succeed, marketers must overcome scale issues, integrate online and offline strategies, and find skilled talent.
The sector is expected to mature over the next few years.