As Retail Media Enters Its Second Act, Savvy Brands Diversify Networks and Tactics

Why It Matters

The shift reshapes spend allocation and measurement, forcing marketers to prioritize high‑impact formats and diversify retailer partnerships to maintain growth in a maturing market.

Key Takeaways

• Amazon share fell to 46% in 2025
• Walmart Connect grew 33% US, one‑third operating income
• Video outperforms display and search in ROI
• Mid‑size retailers now 25% of retail media networks
• Brands must shift spend to top‑of‑funnel formats

Pulse Analysis

The retail media landscape is entering a second act, moving beyond the traditional search‑centric, bottom‑funnel approach that dominated the early 2020s. As e‑commerce giants like Amazon see their share of ad spend dip, mid‑size retailers are gaining traction, now accounting for roughly 25% of all retail media networks. This diversification reduces reliance on a single platform and opens opportunities for brands to reach niche audiences, but it also demands more sophisticated data integration to compare performance across disparate ecosystems.

A key driver of the new growth phase is the rise of high‑impact creative formats, especially streaming video. Walmart Connect’s 33% quarterly growth underscores how video can generate ROI that eclipses conventional display and search ads, even as overall media costs decline. Marketers who continue to chase the cheapest inventory risk diminishing returns, whereas those that invest in premium video placements can capture incremental demand and improve cost‑per‑acquisition metrics. This shift also forces a re‑evaluation of measurement frameworks, moving beyond simple ROAS to incorporate brand lift, viewability, and cross‑channel attribution.

For brands, the strategic imperative is clear: maintain search as a conversion anchor while reallocating a meaningful portion of budgets to top‑of‑funnel tactics such as off‑site video, social, and display within retail media networks. Selective diversification—favoring Amazon and Walmart for scale, but supplementing with niche retailers that align with target demographics—optimizes reach without spreading spend too thin. By aligning creative formats with audience intent and leveraging advanced analytics, marketers can sustain growth in a mature retail media market through 2026 and beyond.