The $231 Billion Retail Media Gold Rush
It’s fair to say that retail media is no longer an emerging channel—it’s a juggernaut reshaping the global advertising landscape.
The channel is currently valued at? $115bn, with forecasts predicting an 101% growth rate over the next 5 years to $231.28bn by 2030.
Moreover, with profit margins reaching 80% for on-site retail media ads, it’s easy to see why retailers are rushing to build their own advertising ecosystems.?
Retailers have a unique advantage over traditional platforms—they sit at the point of transaction, with unparalleled first-party data.
Unlike social media and search ads, which target intent, retail media operates at the moment of purchase, dramatically increasing conversion rates.??
But while some retailers are capitalising on this gold rush, others are falling behind due to a lack of infrastructure, expertise, or a clear data strategy.?
The Unstoppable Growth of Retail Media?
The rapid acceleration of retail media can be attributed to three converging forces:?
The decline in marketing’s reliance on third-party cookies is reshaping the digital advertising landscape, making first-party data the most valuable currency. And retailers are winning, as they are sitting on a veritable gold mine of it!
As a result they can offer highly targeted advertising that not only respects privacy concerns but also delivers superior performance compared to traditional digital channels.?
2. A Shift in Digital Ad Spend?
There has been a fundamental shift in digital ad spend, with retail media now accounting for 20% of global digital ad investments. This rapid expansion has seen it surpass both connected TV (CTV) and display advertising as brands recognise the advantage of targeting consumers at the point of purchase.
In the U.S. alone, retail media spending is projected to reach $59.9 billion in 2024. While Amazon remains the dominant player, retailers in the US such as Walmart, Target, and Kroger are aggressively scaling their media offerings to claim a greater share of this high-margin opportunity. The same is happening elsewhere in the world.?
3. E-Commerce and Omnichannel Domination?
Finally, the dominance of e-commerce and omnichannel retail has accelerated retail media’s growth. With 74% of consumers using retail websites as part of their purchase journey, brands are redirecting budgets to engage shoppers in environments where buying decisions are actively being made.
The retailers that are winning in this space are those with strong omnichannel strategies, seamlessly integrating online and in-store media to create a more cohesive and effective advertising ecosystem.?
Retail Media vs. Traditional Digital Advertising?
Given that retail media is booming, it’s unsurprising that? is consistently outperforming traditional digital advertising channels in effectiveness.??
Studies show that retail websites drive 50% more shopper responses than social media ads, highlighting their superior ability to engage high-intent consumers at the point of purchase. The impact is further underscored by engagement rates for retail media ads, which are 183% higher than the average for digital display advertising.
Unlike other digital channels that face volatility in pricing and performance, retail media continues to deliver strong results with cost-per-click remaining stable, even as impressions and clicks grow by over 20% annually.
This combination of reliability, precision targeting, and higher engagement makes retail media an increasingly attractive investment for brands looking to maximise their advertising ROI.?
Retail Media not just for retailers!?
Retailers around the world are proving that retail media is not just a lucrative opportunity but a transformative force in modern advertising.??
Amazon remains the undisputed leader, generating a staggering $46.8 billion in ad revenue in 2023, making up nearly 10% of its total revenue.
The company’s dominance is fuelled by its sophisticated use of real-time shopper data and hyper-personalised ad placements, creating an unparalleled ecosystem for brands to engage consumers at the moment of purchase.??
However, challengers are rapidly scaling their own operations to compete. Walmart’s Connect retail media business grew by 40% in 2023, surpassing $3 billion in ad revenue, driven by innovations in in-store digital media, including interactive endcaps and AI-powered ad placements that enhance both consumer experience and advertiser value.?
Beyond the U.S., Tesco has built one of Europe’s most sophisticated retail media networks, leveraging Clubcard data to deliver targeted advertising across its digital properties and physical stores.
Similarly, Carrefour has invested heavily in its retail media business, integrating data-driven advertising across its e-commerce platforms and in-store experiences, making it an attractive partner for brands looking to reach European shoppers.?
Meanwhile, grocery chains like Kroger are demonstrating how to merge data with retail media to maximise effectiveness.
Kroger’s Precision Marketing division uses deep insights into consumer behaviour to deliver unparalleled targeting accuracy, and the company is extending this beyond its own ecosystem with off-site retail media, allowing brands to reach Kroger shoppers across the wider digital landscape.?
But, here’s the exciting bit…retail media’s potential is not confined to traditional retail settings. Mohegan Casino’s recent partnership with LiveRamp is redefining retail media by transforming casinos into advertising hubs.
Brands can now target visitors through slot machines, mobile apps, and digital displays, showing that retail media can thrive in entertainment and leisure industries as well.
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Likewise, Airports such as Heathrow and Changi are leveraging their retail spaces and captive audiences to offer premium advertising opportunities, capitalising on high foot traffic and dwell times.
The same is true for cruise ships, resorts, venues and gyms, for example, all able to tap into the power of data-driven advertising to create high-margin, scalable revenue streams.?
Are you ready??
Despite the hype, not everyone is primed to maximise retail media’s potential. To determine readiness,three key areas need addressing:?
1. Infrastructure & Technology?
2. Data Utilisation & Privacy?
3. Measurement & Analytics?
4. Advertiser Value Proposition?
5. Competitive Positioning?
The Risk of Falling Behind?
Retail media is not just an adjacent revenue stream—it’s becoming a core business function.?
For retailers, the consequences of not investing in retail media are severe—missed revenue, reduced competitiveness, and a growing reliance on external ad networks (e.g., Google, Meta).?
For brands, failing to shift ad budgets toward retail media means losing out on direct access to high-intent shoppers.?
The next five years will define the winners and losers?
Without a doubt the next five years will sort the wheat from the chaff..
The opportunity is massive, but only those who move decisively—investing in infrastructure, data, and advertiser partnerships—will reap the full benefits.?
You’ve been warned!?
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