The numbers tell a compelling story: by 2027, retail media will command over 25% of all US digital advertising spend, surpassing $109 billion annually. Retail media networks (RMNs) offer an unparalleled combination of high-intent audiences, precise targeting and closed-loop measurement that's changing how brands connect with consumers.
For D2C, B2C, and omnichannel brands alike, the question is no longer if they should invest in retail media—it’s how to do it strategically.
Retail media refers to advertising within a retailer’s owned platforms—like search ads, display banners, and sponsored products on marketplaces or digital storefronts. These ecosystems, called Retail Media Networks (RMNs), enable brands to target shoppers directly at the digital point of purchase using the retailer's first-party data.
Leading examples include:
So why the surge? Retail media sits at the intersection of media consumption and shopping behavior. Unlike social media or display advertising, where consumers may be in discovery or entertainment mode, retail media engages shoppers who are actively looking to buy.
This high-intent context is further enhanced by retailers' first-party data, which includes:
The combination creates targeting precision, especially as third-party cookies continue to deprecate.
Additionally, leading RMNs can now connect online ad exposure to both digital and in-store purchases, providing a more comprehensive view of campaign impact than standalone platforms.
Despite its promise, retail media isn’t without its hurdles:
Each RMN operates with unique ad formats, attribution models and reporting structures. Scaling across networks requires specialized expertise and platform-specific strategy.
As more brands recognize retail media's effectiveness, competition for placements intensifies. Cost-per-clicks on Amazon have risen steadily, with an increase of 11.6% in 2023. Without disciplined campaign management, Return on Investment can erode quickly.
Retail media often straddles teams—marketing, ecommerce, trade, sales. Without a clear owner or cross-functional alignment, performance suffers.
Over-investing in RMNs without integrating them into your broader paid media mix can lead to inefficiencies and attribution overlap with Google, Meta or affiliate spend.
Not all networks make sense for every brand. Consider:
Focus your efforts where your target audience shops and where your products are well positioned to compete.
Start with SKUs that already perform well, have strong margins or anchor key categories.
Prioritize products for retail media promotion based on:
Retail media accelerates momentum—it doesn't fix poor product-market fit.
On-site ads convert better, but off-site media (like Demand Side Platform retargeting) can drive awareness and re-engagement.
The most sophisticated brands build full-funnel strategies using both.
Effective retail media creative is product-first, conversion-optimized and aligned with platform norms. What works on Meta or YouTube often fails on Amazon.
Success in retail media requires more than budget. It requires channel-specific expertise, data fluency and cross-functional alignment.
Cart.com’s Growth Marketing Team partners with brands to build, manage and scale winning strategies across retail media networks—from Amazon Ads to Walmart Connect and everything in between.
Consumers will respond best to brands that treat retail media not just as another advertising channel, but as a fundamental transformation of how they engage with them during the purchase decision process.
By developing specialized expertise, you can leverage this $109 billion opportunity to drive sustainable advantage and profitable growth.
Discover how our marketing team helps ecommerce brands drive performance across the entire customer journey. With deep expertise in retail media and marketplace strategy, we empower brands to reach high-intent shoppers, maximize ROI, and scale with confidence across platforms like Amazon and Walmart. Contact us today to know how to drive results where it counts.