US retail media: time to prove its value

US retail media has grown into a substantial advertising market – but its next phase will be judged by how effectively it helps retailers and brands grow their businesses. Networks are expanding, channels are multiplying and AI is changing how products are discovered. Alongside that opportunity comes a harder set of questions about value, accountability and the experience offered to consumers.

The familiar proposition remains compelling: retailers understand their customers, know what they buy and can help advertisers reach them close to purchase. But the market is moving beyond sponsored search and the digital shelf. Retailer audiences and transaction insights now inform campaigns across streaming TV, social platforms, creator content and physical environments. This broadening reach brings commerce media into closer contact with brand advertising, shopper marketing and the wider commercial relationship between retailers and suppliers.

For boards, that creates decisions about where to invest, which capabilities to own and how to distinguish sustainable growth from another claim on existing budgets. Advertising revenue matters to retailers, but its contribution needs to be considered alongside merchandising, operating costs and customer loyalty. Brands need to understand whether spending creates additional demand, strengthens consideration or simply captures purchases already likely to happen. Consumers, meanwhile, want relevance, value and convenience, with control over how their information is used.