Amazon and Walmart are leading the Retail Media revolution: they will account for more than 84% of investment by 2025.

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Retail Media has emerged as one of the most disruptive and effective strategies in advertising. It connects brands and consumers directly in the digital spaces where purchasing decisions are made, transforming the way companies interact with their customers. In this dynamic market, Amazon and Walmart are consolidating their position as the giants of the sector, projecting themselves as the main recipients of Retail Media investment. It is estimated that by 2025, these two companies will account for more than 84% of the global total, marking a turning point in the advertising industry.

What is Retail Media and why is it so important?

Retail Media refers to the use of e-commerce platforms as strategic advertising spaces. Through advanced targeting and data analysis tools, it allows brands to target specific audiences at the exact moment they are considering a purchase.

The key to the success of retail media lies in its ability to deliver measurable results. From an advertiser’s point of view, this strategy ensures visibility and a direct return on investment thanks to its close link to sales.

Explosive growth of Retail Media

Global investment in Retail Media has grown steadily over the last decade, reaching record levels in 2023. This year, the industry reached $201.3 billion, an increase of 21% over the previous year.

Projections indicate that this trend will continue, with an average annual growth of 13.8% until 2026. Factors such as the digitisation of commerce, the expansion of e-commerce and the rise of data analytics technologies are driving this boom.

Amazon: the undisputed leader

Amazon has managed to consolidate its position as the leading player in Retail Media. It currently controls around 37% of the global market, making it the partner of choice for thousands of brands seeking to maximise their impact on consumers.

Amazon’s advertising platform offers not only viewability, but also a complete ecosystem of analytics tools that allow advertisers to measure every aspect of their campaigns. In addition, thanks to its vast reach and purchase data, Amazon can guarantee extremely accurate targeting.

Its leadership is no accident, but the result of a comprehensive strategy that combines user experience with advertising efficiency. This competitive advantage has made Amazon the epicentre of retail media investment.

Walmart: a competitor on the rise

Although Amazon leads the market, Walmart has proven to be a formidable competitor. In recent years, the company has invested heavily in its Walmart Connect platform, doubling its advertising reach and attracting new advertisers.

One of the pillars of its success is its focus on sponsored search, which has shown annual growth of more than 30%. In addition, Walmart has been able to leverage its physical shop network to complement its digital ecosystem, providing a unique omni-channel experience.

Walmart’s move reflects a growing trend among large retailers looking to diversify their revenue streams through retail media.

Benefits and challenges for brands

For brands, retail media represents a unique opportunity to reach consumers directly and effectively. Thanks to the platforms’ targeting and analytics capabilities, advertisers can personalise their messages and optimise ROI.

However, this market is not without its challenges. The concentration of investment in Amazon and Walmart means fierce competition for advertising space. In addition, brands must adapt to constant technological innovations and rising consumer expectations.

The impact of Retail Media on global advertising

The rise of retail media is redefining digital advertising globally. Not only is it displacing traditional formats such as banner and search ads, but it is also driving new forms of interaction between brands and consumers.

Moreover, this model is forcing companies to rethink their marketing strategies, integrating advanced analytical and segmentation tools to stay competitive.

Future prospects: a constantly evolving market

Retail media is far from reaching its ceiling. With the integration of technologies such as artificial intelligence and machine learning, this sector is expected to continue to evolve, offering brands new opportunities to connect with their audiences.

On the other hand, increased competition between Amazon, Walmart and other market players will spur innovation, improving the tools and services available to advertisers.

Ultimately, retail media is not only the future of digital advertising, but also a key driver of retail transformation in the 21st century. As more brands adopt this approach, the impact on the global ecosystem will become increasingly evident.

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