Retail media is the fastest-growing channel in digital advertising. Global spending hit $150 billion in 2024 and is projected to reach $200 billion by end of 2025, with $106 billion expected by 2027.
This is the third wave of digital media—after search and social—and it's reshaping how brands reach consumers at the point of purchase.
Walmart, Amazon, Instacart, and Target aren't just retailers anymore. They're high-traffic ad platforms, monetizing shopper attention the way Facebook and Google once did. And AI is transforming how brands advertise across these networks.
Why Retail Media Networks Matter Now
First-Party Data in a Privacy-First World
With third-party cookies disappearing and privacy regulations tightening, advertisers need new data sources. Retail media networks offer exactly that: first-party purchase data—what people actually buy, browse, and search for—straight from the source.
This isn't inferred intent from browsing behavior. It's actual transaction data. When you advertise on Walmart Connect or Target Roundel, you're reaching audiences based on verified purchase history and real shopping behavior.
Closed-Loop Attribution
The holy grail of advertising: know exactly which ad drove which sale. Retail media networks deliver this because the advertising and the transaction happen within the same ecosystem.
Advertise on Amazon, track sales on Amazon. Advertise on Walmart Connect, track sales at Walmart. The attribution loop is closed by design.
Point-of-Purchase Influence
Traditional advertising reaches consumers somewhere in their journey and hopes they remember when they finally shop. Retail media intercepts them at the moment of purchase decision—when they're already in buying mode. A shopper searching for "running shoes" on Walmart.com is infinitely more valuable than someone who searched the same term on Google three weeks ago.
The Major Retail Media Networks
Amazon Ads
The dominant force with $56.2 billion in global ad revenue in 2024—over two-thirds of US retail media spend.
What they offer:
- •Sponsored Products, Brands, and Display
- •Amazon DSP for programmatic reach
- •Amazon Marketing Cloud for advanced analytics
- •Performance Max-style automation via Performance+
AI capabilities (2025):
- •Ads Agent: Natural language campaign management across DSP and Marketing Cloud
- •Sponsored Products/Brands Prompts: AI-powered conversational ad variations
- •Creative Agent: Generative AI for video and creative production
- •Performance+ and Brand+: AI-driven optimization with "glass box" transparency
Walmart Connect
The primary challenger with $4.4 billion revenue and 26.4% growth in 2023. Uniquely combines massive brick-and-mortar footprint with expanding e-commerce.
What they offer:
- •Sponsored Search on Walmart.com
- •In-store digital displays and self-checkout ads
- •Offsite programmatic via Walmart's shopper data
- •Omnichannel measurement connecting online and in-store
Performance benchmarks (Q3 2025):
- •CPC decreased 20% QoQ
- •ROAS increased 21% QoQ
- •Efficient CPCs at $0.84
Case study: A fashion advertiser using dynamic bidding within Walmart Connect achieved +20% increase in ad-attributed sales, +12% rise in orders, and +5% lift in conversion rate over a 21-day test.
Target Roundel
Generates $1.76 billion annually, focusing on fashion, home goods, and general merchandise with strong loyalty program data from Target Circle.
Unique advantage: Two-thirds of Target guests use the app or website while shopping in-store—enabling true omnichannel targeting.
Instacart Ads
The online grocery leader with advertising opportunities across the shopping journey. Partnership with 1,400+ retailers across 80,000+ stores.
Key partnership: Integration with The Trade Desk enables closed-loop measurement—advertisers track campaigns from impression to checkout in real time.
Emerging Networks
- •Home Depot Retail Media+: DIY and home improvement audiences
- •Walgreens/CVS: Health and wellness advertising with pharmacy data
- •DoorDash: Acquired Symbiosys (retail media adtech) for $175 million in June 2025
- •7-Eleven Gulp Media: Convenience store digital and in-store ad inventory
What AI Changes
Cross-Network Campaign Management
The challenge: each retail media network operates independently with different interfaces, metrics, and optimization approaches. Managing campaigns across Amazon, Walmart, Target, and Instacart means managing four separate ecosystems.
AI-powered platforms unify this:
- •Pacvue: Commerce Operating System connecting retail media, commerce, and measurement across networks
- •Skai: Enterprise platform for retail media management across networks with forecasting and optimization
- •Improvado: 500+ connectors including Amazon Ads, Walmart Connect, Target, Instacart with unified reporting
Automated Bidding and Optimization
AI enables sophisticated bid management across retail media:
- •Real-time bid adjustments based on conversion probability
- •Dayparting that accounts for shopping patterns
- •Budget reallocation between networks based on performance
- •Predictive analytics for campaign forecasting
Case study: A beverage manufacturer automated hourly bids using Pacvue's dynamic dayparting. Result: 31% increase in revenue, 26% rise in ROAS, 7% lift in conversion rate.
Creative Generation
Amazon's AI creative tools now include Video Generator for Sponsored Brands, AI Image Generator for product imagery, and AI Creative Studio for comprehensive creative production. These tools let brands create compelling ads without production teams—critical for the volume of creative needed across multiple networks.
Incrementality Measurement
The key question: did the ad drive incremental sales, or would those sales have happened anyway?
AI-powered incrementality measurement compares iROAS (incremental ROAS) across retailers, identifies where to scale vs. pull back, and replaces last-click attribution with predictive models. Pacvue's Incrementality Console measures additional revenue generated by advertising—not recycled or organic conversions.
Implementation Framework
Phase 1Network Selection
Evaluate based on where your products are sold, audience fit, category competition, and budget thresholds. You can only advertise on networks where you have distribution.
Phase 2Data Foundation
Implement proper tracking, connect to unified analytics, and establish naming conventions for cross-network analysis.
Phase 3Campaign Architecture
Start with Sponsored Products, layer in display and video, enable automation, and test across networks.
Phase 4Optimization and Scaling
Monitor incrementality, rebalance cross-network, expand formats, and coordinate with trade spend.
Best Practices
- •Think omnichannel: Walmart Connect's power comes from connecting digital ads to in-store purchases. Design campaigns that leverage these connections.
- •Prioritize incrementality over ROAS: A high ROAS might just mean you're capturing sales that would have happened anyway. Incremental ROAS tells you what advertising actually added.
- •Don't neglect creative: Product imagery, titles, and descriptions affect performance across all networks. Invest in strong product content.
- •Account for seasonality: Retail media performance varies dramatically by season, holiday, and even day of week.
Common Mistakes
- •Amazon-only focus: Walmart Connect (+26% YoY ad spend) and Instacart (+13% QoQ) are growing fast. Diversification reduces risk.
- •Ignoring in-store: Digital advertising on Walmart Connect can drive in-store purchases. Don't only measure online sales.
- •Siloed management: Managing each network independently prevents cross-network optimization.
- •Generic creative: Each network has different ad specs, audience contexts, and creative best practices.
The Bottom Line
Retail media is no longer optional for consumer brands. It's mission-critical infrastructure. The opportunity: $200 billion in global spend by end of 2025, first-party purchase data in a privacy-first world, closed-loop attribution connecting ads to sales, and point-of-purchase influence at the moment of decision.
The brands winning in retail media aren't just advertising on Amazon. They're building omnichannel strategies across Walmart, Target, Instacart, Kroger, and emerging networks—using AI to optimize the whole ecosystem. That's where retail media is heading. Make sure you're heading there too.
