The retail media landscape has undergone a significant transformation, evolving from an emerging channel to a dominant force in the advertising sector. According to WARC Media, investment in this segment soared by 21.3% in 2024, with projections indicating it will reach €25 billion by 2027. This remarkable growth has been fueled by industry giants like Amazon and Walmart, which have developed innovative advertising solutions that capture consumers’ attention at the point of purchase.
In Spain, retail media is expected to account for approximately 60% of media investment by 2026, driven by the likes of Amazon and Walmart. These companies have pioneered new advertising formats that have piqued the interest of consumers, setting a high standard for the industry. The rise of retail media has also led to the emergence of new players, each with unique offerings that challenge Amazon’s dominance. As WARC Media notes, retail media investment is poised to surpass linear TV advertising by 2027, cementing its position as the go-to channel for brands and advertisers.
Who’s Leading the Retail Media Ecosystem?
In the United States, Amazon Ads reigns supreme, commanding 75% of the sector’s ad revenue. Meanwhile, Walmart Connect has bolstered its presence with a self-service ad platform, allowing brands to expand their reach through graphical ads across its digital properties. With 37 million daily shoppers and 37% of online food sales in 2024, Walmart is a force to be reckoned with. However, other retailers have been busy developing their own strategies to compete in this space:
- Carrefour Links offers hyper-targeted advertising by combining online and offline purchase data, enabling brands to run data-driven campaigns across stores, e-commerce platforms, and apps.
- Target Roundel leverages its loyalty program, Target Circle, which boasts 100 million members, to offer personalized promotions both in-store and via its mobile app.
- Instacart has registered a 10% year-over-year increase in sales and a 17% rise in ad revenue in 2024, thanks to its food delivery strategy and partnerships with various retailers.
- Kroger Precision Marketing, launched in 2023, has enabled advertisers to target consumers at multiple touchpoints along their shopping journey, resulting in a 20% increase in revenue in 2024.
- Home Depot focuses on customers interested in home improvement projects, providing retargeting opportunities on social media and capturing buyers at the point of purchase on its website.
Retail media has become a vital component of brands’ digital marketing strategies, offering more effective and data-driven advertising solutions. As this model continues to redefine the global advertising landscape, it’s clear that retail media is the future of digital media investment. With its ability to deliver targeted, data-backed ads, retail media is poised to revolutionize the way brands connect with their audiences, making it an indispensable tool in the world of digital marketing.
