Retail Media Expert Alex Knapman on Why Retail Media Will ‘Fundamentally Reshape’ Advertising

Why It Matters

Retail media is set to become a core, full‑funnel advertising channel, and firms that embed it into planning and measurement will secure a lasting competitive edge as budgets shift.

Key Takeaways

• Retail media growth slowed due to legacy budget planning tools
• Agencies face operational overhead coordinating multiple retailer platforms
• Retailers must shift from trade‑income model to true media business
• Brands split budgets, hindering full‑funnel integration of retail media
• AI and standardized metrics will drive retail media’s mainstream adoption

Pulse Analysis

Retail media has moved from a niche performance tactic to a potential cornerstone of modern advertising. Its ability to blend traditional formats—such as CTV, DOOH, and social video—with shopper data gives brands a unique lever to boost both mental and physical availability. While revenue streams are expanding, the sector’s momentum has been muted by outdated planning tools that were built for television and print, leaving many agencies reluctant to allocate sizable budgets without clear, standardized metrics.

The friction points are institutional rather than technological. Agencies must juggle disparate retailer platforms, each with its own reporting cadence and measurement methodology, turning a $317,000 (≈£250k) activation into a disproportionate operational burden. Retailers, meanwhile, often treat media inventory as a side‑hustle to trade income instead of a disciplined advertising product, limiting long‑term investment in data infrastructure. Brands suffer from siloed budget structures—brand, shopper, and e‑commerce teams compete for dollars—making it hard to view retail media as a full‑funnel solution. AI‑driven planning suites and emerging IAB standards are beginning to harmonise cost curves and reach models, easing the integration challenge.

Looking ahead, the convergence of AI, measurement standardisation, and senior‑level sponsorship will push retail media into mainstream media mix planning. Companies that redesign their organisational workflows—aligning agency tools, retailer partnerships, and brand KPIs—will unlock the channel’s growth potential and avoid the catch‑up scramble that competitors may face. In a landscape where technology consistently outpaces institutional inertia, the early movers who professionalise retail media operations are poised to reap the biggest upside.