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On today's podcast episode, in our "Retail Me This, Retail Me That" segment, we discuss what's fueling the non-endemic retail media fire, how to do non-endemic advertising the wrong way, and how success is measured. Join our analyst Sara Lebow as she hosts vice president of content Suzy Davidkhanian and analyst Sarah Marzano.

Ninety-one percent of US advertisers plan to maintain or increase their investment in retail data in the next few years, according to data from The Trade Desk Intelligence.

Cara Pratt, SVP of Kroger Precision Media, is right when she says that 鈥渞别迟补颈濒 media is 尘别诲颈补.鈥� While the fast-rising ad format may draw its unique power from retail鈥攕pecifically the first-party consumer purchase data used for high-octane targeting and closed-loop measurement鈥攊t鈥檚 not a physical product sold on store shelves and shouldn鈥檛 be treated as such.

David鈥檚 Bridal is the latest retailer to rely on a third-party marketplace to shore up sales: Like Walmart and Best Buy, it adopts an 鈥渁sset-light鈥� model to expand inventory鈥攁nd ad sales鈥攚hile minimizing expenses.

eBay recently posted ad revenues of $367 million in Q2 2023鈥攁 growth of 35% YoY鈥攊n its latest earnings. But much of that can be tied to innovation in its ad types, improved measurement capabilities, and expanded third-party ads. eBay鈥檚 market also gives it a retail media opportunity outside of consumer packaged goods (CPG). Let鈥檚 break down what eBay is doing right.

What do you get when you cross a $35 billion ad platform with a 160 million viewer streaming service? A snapshot of Amazon鈥檚 US retail media connected TV (CTV) potential. Luxury brand Movado is leveraging that potential to push video campaigns for Amazon Prime and Freevee viewers.

Retailers face big hurdles in 2025. From competing with Amazon's advertising empire to figuring out generative AI (genAI) technology to keeping shoppers on apps, these challenges are forcing retailers to adapt quickly. Here's what these problems look like today鈥攁nd how they could potentially be resolved.

See our latest industry KPIs for retail media.

US omnichannel retail media ad spend will account for nearly a quarter of total media ad spend by 2028, reaching $129.93 billion, per our forecast. This growth will be fueled by a surge in retail media search, non-endemic partnerships, and off-site placements. However, financial media networks may give retail media networks some competition for advertiser dollars.

What are 2023鈥檚 top retail media networks for CPG brands? From Amazon to Kroger, we share a selection from our in-depth report evaluating ad buyers鈥� perceptions of leading platforms.

Walmart looks to make it easier for advertisers to buy its display ads: Walmart Connect鈥檚 new API should help it attract more ad dollars from smaller brands and marketplace sellers.

In-store sales data is a massive opportunity gap. The biggest gap between how retail media networks (RMNs) perform today versus their most desired attributes was with in-store sales data. With nearly 90% of grocery sales still occurring in physical stores, RMNs that deliver seamless omnichannel sales attribution will be well positioned to capture consumer packaged goods (CPG) advertising budgets.

Retail media has been buoyed by consumer packaged goods companies and grocery brands looking to get their products in front of shoppers closer to the point of purchase. But now, other categories are looking to join the party: nonendemic advertisers.

The media model popularized by retailers is now being adapted by companies in other verticals. Financial services and travel companies are among those launching commerce media networks in a bid to monetize their first-party data.

Amazon鈥檚 competitive advantage: Unlike Google鈥檚 Search Generative Experience (SGE) or Walmart鈥檚 AI-driven retail media tools, Rufus benefits from Amazon鈥檚 closed-loop shopping ecosystem and large customer base that it can use to zero in on custom ads. Rufus gives Amazon a new way to grow ad revenue, seamlessly blending AI-driven ads into search without disrupting the user experience.

The retail media landscape is dominated by national retailers like Amazon and Walmart, which boast the No. 1 and No. 2 retail media networks in the US by digital ad spend, per our forecast.

Banks want customers to act on offers they receive through their loyalty programs, as this drives sales for their retail partners鈥攁nd in turn, ad revenues for banks. As of 2021 (the latest available data), 95% of loyalty program users go inactive 90 days after joining, per PaymentsJournal. GenAI鈥檚 more granular targeting could stem this drop-off. How easy is it to implement?

While the retail media opportunity is massive, it requires reaching consumers across a growing number of channels and adapting in real time. Google鈥攚hich receives billions of searches daily鈥攃an help capture new demand, and turn that demand into purchases, by bringing in valuable first-party data to a brand鈥檚 retail media program.