Retail Media Networks: The $166 Billion Disruption Reshaping Commerce
Why Every Retailer Is Becoming a Media Company and What It Means for Brand Strategy
Every retailer is becoming a media company, and the implications are staggering. Retail media networks — whose leaders include Amazon, Walmart and Target — are expected to make up one-fifth of worldwide digital ad spend in 2024, raking in $140 billion, up from $115 billion in 2023.
But here's what most people miss: this isn't just about advertising revenue. Retail media networks are fundamentally restructuring the relationship between brands, retailers, and consumers.
Home Depot's Orange Apron Media isn't just selling ad space—they're creating a closed-loop ecosystem where brands can measure actual sales impact, not just impressions or clicks. When asked what emerging retail media technologies spark their interest, our survey found that 63% of respondents would like data-driven personalized promotions, while 60% expressed an interest in omnichannel-based customer and business insights.
The strategic advantage goes beyond traditional advertising metrics. Retail media networks provide brands with first-party data insights that reveal actual purchase behavior, not just browsing patterns. When Procter & Gamble advertises on Walmart Connect, they're not just reaching potential customers—they're accessing real-time sales data that informs everything from product development to inventory management.
The in-store revolution is just beginning. EMarketer forecasted earlier in 2024 that in-store retail media ad spending will grow about 47% in 2025. Smart retailers are installing dynamic digital displays, interactive kiosks, and even voice-activated advertising systems that respond to real-time inventory and customer data.
While only 36% of respondents rated in-store networks as highly important in 2022, 46% rated them as highly important in 2024. And 52% said they expected in-store networks to be highly important to them in 2025.
The data collaboration potential is unprecedented. Clean rooms and privacy-enhancing technologies are enabling secure data sharing between brands and retailers without compromising customer privacy. This creates opportunities for predictive analytics, personalized promotions, and supply chain optimization that weren't possible in traditional advertising relationships.
Consider Kroger's 84.51° platform: they're not just selling advertising space, they're providing brands with consumer insights that drive product innovation, optimize pricing strategies, and predict market trends. This transforms retail media from a cost center to a strategic competitive advantage.
The consolidation is already happening. Major retailers are acquiring advertising technology companies, agencies are building retail media specializations, and tech platforms are creating unified solutions for managing campaigns across multiple retail networks.
The retailers that successfully build comprehensive retail media networks won't just generate additional revenue—they'll become indispensable partners to brands, controlling access to consumers at the most critical moment: the point of purchase.