Episode Details

I’m revisiting one of my most popular episodes from last year: the retail media doom loop. The basic idea is pretty simple — a retailer sees the ad revenue being generated by Amazon and Walmart, launches a retail media network, and quickly grows by moving existing trade and shopper marketing dollars onto a media line. But what happens when that easy growth runs out?

In this episode, I look at what the latest data and conversations with retail media leaders suggest about where the industry is actually headed in 2026 and beyond. I dig into why sponsored search and on-site display remain the backbone of retail media, why some of the industry’s newer “sparkly” offerings are struggling to gain adoption, and why the unglamorous work of fixing ad tech may matter far more than the flashy announcements getting all the attention.

This episode is sponsored by GrowthLoop

Timeline

[00:59] - What the latest eMarketer and Bain research says about retail media growth expectations in 2026

[01:52] - Why sponsored search and on-site display still dominate retail media ad spending

[03:04] - The “add sparkles” phase of the retail media doom loop — and why shiny new formats can distract from core problems

[04:00] - How a legacy ad server created major forecasting problems for one mid-sized retail media network

[05:15] - The hidden cost of manual retail media operations and the potential for missed seven-figure ad opportunities

[06:43] - Why creators and off-site media are struggling to gain adoption among some brands

[08:41] - What consolidation could mean for the future of commerce media

Links & Resources

• Sarah Marzano, principal analyst for retail and commerce media at EMARKETER, presented findings from work with Bain at Groceryshop last week.
• Follow Sarah Marzano on LinkedIn
• Read my related articles:
  • The Retail Media Doom Loop
  • Why Good Retailers Make Bad Ad Tech Decisions (The Drum)
  • The Hallucination Is That Everything Is Just Fine As It Is
  • Are RMNs finally getting the hang of this collaboration thing?
• Check out Basket Case, a project I’m part of with The Drum and QSIC, an irreverent and lively podcast series where we talk shop.
• I'm sharing comedy skits on Instagram about retail media! Follow along: @retailmediabreakfastclub
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn