Retail Media Faces 'Mid' Perception Amidst Amazon Dominance, Onsite Search Focus
This article discusses the perception and future of retail media, highlighting concerns that it could become 'mid' due to over-reliance on sponsored products and Amazon's dominance. Industry experts, however, argue that non-Amazon and offsite retail media markets are substantial and growing, with potential for omnichannel reach, and that retailers need to invest seriously to capitalize on the opportunity. Major companies like Amazon, Walmart, and Target are generating significant ad revenues, indicating retail media is becoming a key profit center.
Key Takeaways
- Non-search retail media currently represents a $21 billion market, projected to reach $35 billion by 2029.
- Non-Amazon retail media stands at $23 billion, supporting multiple $1 billion-plus ad businesses including Walmart and Instacart.
- In-store retail media, currently minimal, is anticipated to become a $10 billion to $20 billion market within five to ten years.
- Amazon generated $68.6 billion in ad revenue in 2025; Walmart's ad revenue grew 46% to nearly $6.4 billion.
- Target's Roundel platform generates nearly $2 billion in value through ad revenue and cost offsets.
Additional Context
The sentiment around retail media's potential to become "mid" highlights ongoing challenges and opportunities. A May 2025 report from Keen Decision Systems, cited in a Retail Media Breakfast Club article (May 2025), indicated that while Amazon captured 64% of retail media budgets, its marginal ROI was 0.71, compared to Walmart's 0.90 for an 8% budget share, and Kroger's 1.63 for a 2% share. This suggests brands are increasingly seeking efficiency beyond Amazon. Separately, eMarketer's H1 2025 forecast (also cited in Retail Media Breakfast Club, May 2025) projected off-site retail media spend to jump 36% in 2025, with CTV expected to grow 43%. While on-site still leads, its share is predicted to shrink to 73% by 2029, with Amazon's off-site share dropping to 69% from 79% on-site, creating a $4 billion opportunity for competitors. Meanwhile, a P2PI online survey from September-October 2025 (P2PI, 2026) showed Amazon, Walmart, Kroger, Instacart, and Walgreens leading in RMN ratings among brand and agency executives, with year-over-year improvements across many networks. This indicates a maturing landscape where consistency and performance are increasingly critical. Brands are focused on proving ROI and improved profitability, with better measurement being a key accelerator for investment, according to the Skai x Stratably 2026 State of Retail Media Study (Retail Media Breakfast Club, February 2026).
Read full article at retailmediabreakfastclub.com
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