Retail media moves from the bottom of the funnel to center stage

Retail media is entering a new phase — one where it’s not just a performance channel but a strategic pillar of marketing. As brands chase precision and scale, retail media networks (RMNs) are stepping up with the data, formats and reach to deliver both.

Retail media’s growing reach

RMNs are rapidly evolving from their roots in lower-funnel, performance-focused advertising into full-funnel marketing ecosystems. What began as a way to promote sponsored products on a retailer’s digital shelf has grown into a powerful and versatile media channel. 

Brands now run RMN campaigns on everything from Prime Video and streaming TV to native placements inside retailer mobile apps. Think shoppable videos on Walmart.com or product-focused reels inside Target’s app. This is a logical strategic extension for RMNs. It’s about showing up where consumers are already spending time in a way that feels less like an ad and more like part of the experience.

Amazon, whose media, ads and commerce flywheel ecosystem is powered by massive reach, is leading the expansion. Its ads reach 130 million monthly Prime Video viewers, 88% of whom also shop on Amazon.com properties. 

But retail media’s shift is not just about new formats — it’s about new value. The combination of premium inventory and deep consumer insights puts RMNs uniquely positioned to support immediate conversion goals and longer-term brand building.

As the broader digital advertising industry grapples with signal loss and rising media fragmentation, retail media stands out as a brand-safe, data-rich channel that provides both reach and measurable outcomes. For many, RMNs are emerging as a critical component of a media strategy.

Dig deeper: Despite challenges, marketers say retail media is the channel of choice

Expanding into the upper funnel

Traditionally associated with sponsored listings and search-driven placements, RMNs are now pushing into upper-funnel territory. Across both owned and syndicated media, retailers are expanding their offerings to include:

• Video ads.
• Shoppable branded content.
• Native placements.
• Even interactive formats.

For example, Walmart Connect’s partnership with Roku enables brands to run connected TV (CTV) campaigns that can directly link to in-store or online sales outcomes. Amazon offers a full ecosystem from Sponsored Ads and Posts to Prime Video Streaming TV ads, blurring the line between content and commerce. 

Target’s Roundel and Kroger’s Precision Marketing similarly enable more immersive brand experiences across display, social and video environments. Many analysts predict the next RMN formats ready to scale will be in-store ads or product experiences. 

Brands are increasingly embracing these opportunities to:

• Sell products.
• Tell stories.
• Introduce new offerings.
• Drive emotional engagement with consumers. 

This evolution positions retail media not as a siloed sales channel but as a versatile, full-funnel partner.

What drives RMN growth?

Several factors converge for brands and retailers, driving this rapid evolution of the RMN space. 

For retailers

Retailers are saying, “Show me the money.” With tighter margins in retail and higher ones in advertising, retailers — now acting as publishers — are chasing the more profitable path.

In Q3 2024, Walmart’s CFO acknowledged that advertising via RMN Walmart Connect has grown to represent a third of the company’s operating income. There are enormous profit implications for RMNs growing their full-funnel scale. Here’s how they’re looking to accomplish that.

Expanding to new formats

Retailers recognize that their owned inventory — homepage banners, search result placements and on-site carousels — can only scale so far. To grow their media revenue and remain competitive with broader digital platforms, they are extending into richer, cross-digital formats such as:

• Programmatic display.
• Video.
• Audio.
• CTV. 

These formats allow RMNs to reach shoppers off-site while they are engaging with media and content.

Access to larger, more strategic brand budgets

Retail media was traditionally funded through trade and shopper budgets, which targeted sales-driven tactics and category promotions. Full-funnel marketing budgets, however, are larger and focus on broader KPIs like awareness and consideration.

RMNs are moving up the value chain and into integrated campaign planning by offering premium inventory and storytelling opportunities.

RMNs’ competitive advantage — first-party audience data

Retailers sit on some of the most valuable first-party data in the ecosystem — real purchase behavior. As third-party cookie deprecation erodes audience targeting, RMNs are using their data to build robust, privacy-compliant audience segments that brands can target across multiple media environments:

• Retailer-owned sites.
• Open web display.
• Video.
• Streaming TV.

This ensures relevant, high-intent engagement wherever the consumer is engaging.

For brands 

What’s driving the shift for brands? As digital advertising raises the bar on targeting and attribution, marketers want brand campaigns to deliver measurable results. Retail media has the data to deliver, and brands are investing accordingly.

Expanding audiences through behavioral and purchase insights

Through RMN data, brands can target beyond their existing customers, also targeting lookalike audiences who display relevant behaviors, such as:

• Lapsed buyers.
• Shoppers of competitive brands.
• Consumers who frequently browse the category. 

This rich behavioral data is difficult for other digital channels to match, and it allows brands to find and grow high-value audiences at scale.

Personalization based on shopping behavior

RMNs foundation of real shopping data enables more precise and creative targeting. A pet food brand, for instance, can vary messaging based on whether someone is a dog or cat owner or whether they typically buy premium or value-tier products.

This level of contextual personalization enhances message relevance and drives stronger engagement and conversion.

Accountable measurement, linking campaigns with real conversion outcomes

Retailers can offer closed-loop measurement that directly connects ad exposure with transactions, online or offline. That helps brands move beyond clicks and impressions to track whether a campaign ultimately led to sales. It is especially valuable for brand campaigns, which have long struggled to show bottom-funnel impact.

Dig deeper: What retailer marketers should be thinking about in 2025

Shifting budgets: From trade to brand teams

Retail media’s transformation is reshaping where ads run and who funds them. Historically, RMNs were the domain of shopper and trade marketing teams, focused on short-term, tactical efforts like:

• In-store promotions.
• Seasonal pushes.
• Digital endcaps. 

RMNs’ expansion into upper-funnel formats that offer richer audience targeting is drawing increased attention and budget from brand and media teams. This shift is significant. Brand budgets tend to be larger and more strategic, aimed at driving awareness, consideration and long-term equity.

As spend moves up the funnel, marketers must rethink how they plan, activate and measure success in these environments. Traditional trade KPIs like units sold are no longer enough. Advertisers are adopting:

• New metrics, such as aided awareness, brand favorability and attention scores.
• Advanced measurement frameworks, like incrementality testing, media mix modeling and lifetime value analysis.

This evolution also raises the bar for creative. Assets built for product tiles won’t cut it in CTV or interactive brand experiences. Brand teams are now working with creative and media agencies to develop campaigns that tell stories, spark emotion and reinforce brand positioning. Retail media is no longer just a digital shelf — it’s a storytelling platform, and brands are adapting accordingly.

Retail media’s next wave: Partnerships lead the way 

Some products and partnerships recently launched by major RMNs showcase the expansion into new ad formats, budget sources and campaign strategies.

• Walmart Connect has made extensive partnerships in the CTV space, including Paramount, NBCUniversal and Roku. It also made headlines late last year by acquiring low-cost TV manufacturer Vizio. The acquisition gives Walmart Connect access to nearly 19 million accounts and smart TVs across the U.S.
• Amazon Ads has expanded to include sponsored ads, posts, and DSP access to Amazon audiences for display, audio and video buys — on and off its properties. At this year’s upfronts, it introduced AI-powered contextual pause ads on Prime Video, signaling continued innovation.
• Earlier this year, Instacart launched ads in-store via Smart Carts in partner grocery stores, letting brand advertisers reach new customers or target competitor shoppers. 

Retail media in 2025: Considerations for brands

Retail media is becoming a key piece of omnichannel marketing. U.S. ad spend in this space could hit $62 billion in 2025 and grow to over $100 billion by 2029, per eMarketer.

To make the most of it, brands need to align their performance and brand marketing efforts. That way, someone who sees a brand video on Prime or TikTok gets the same message when they’re shopping online later. It also helps brands make smarter media buys and measure results in a connected way.

As RMNs continue to grow and innovate, smart brands will test new formats, invest in creative, and include retail media in their overall media plans. The payoff? Better targeting, better data, and a better way to connect with customers — wherever they are.

Dig deeper: Unilever’s Ben & Jerry’s campaign shows why RMNs are the future