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APRIL 6, 2026 |
Ad budgets are harder to defend. Join EMARKETER in New York City on Thursday, May 14 for a full day of advertising insights featuring new data, exclusive analysis, and direct conversations with the buyers and brand leaders navigating what comes next. Register now.
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Retail media networks have become one of the fastest-growing segments in digital advertising. Retailers from Amazon to regional grocers now operate advertising businesses that leverage first-party shopper data to help brands reach consumers at or near the point of purchase. |
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US advertisers spent $60.32 billion on retail media in 2025 and will spend $71.09 billion in 2026, according to a December 2025 EMARKETER forecast. This FAQ addresses how retail media works, who the major players are, and what marketers should consider when allocating budgets. |
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Why are advertisers investing in retail media networks? |
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Some 62% of CPG marketers expect to increase their retail media spending in the second half of 2025, per Mediaocean's 2025 H2 Market Report. |
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Four factors drive continued investment: |
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First-party data access. As third-party cookies fade as a default solution, retailers' purchase data becomes increasingly valuable for targeting and personalization.
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Closed-loop measurement. RMNs connect ad impressions directly to transactions, providing deterministic attribution that traditional digital advertising cannot offer.
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Proximity to purchase. Ads reach consumers at or near the point of sale, reducing the gap between awareness and conversion.
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Full-funnel capabilities. 40% of advertisers regard retail media as capable of delivering full-funnel results, per August 2025 Infillion data. Only social media ranked higher at 52%. |
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Amazon is working to convince advertisers of the potential of AI shopping assistant Rufus. A leaked Amazon pitch deck cited by Adweek claims that Rufus is a “virtual product expert” and outlines how Rufus ads will be priced and measured as availability increases. |
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The pitch deck says that, as Rufus ads move from open beta to launch, advertisers will begin being charged and will be able to see cost-per-click data. Amazon is planning on a wide release “soon,” but did not specify when. |
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Amazon has spent the past year testing ads in Rufus to foster an AI-driven retail media environment. |
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Amazon began testing ways to embed sponsored product offerings into Rufus responses in 2025. This approach surfaces ads in AI-curated interactions, where Amazon’s algorithm determines which relevant products users see.
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The company has tested shoppable ads in Rufus that tap Amazon’s closed-loop ecosystem, allowing for a seamless path from product discovery to purchase. |
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