How will retail media affect the future of advertising?
Week in Focus
Retail media has grown rapidly in recent years. Fuelled by a wealth of first-party data and improved measurement capabilities, it has become an increasingly powerful channel for driving conversion.
To mark The Media Leader‘s Retail Media Week in Focus, the team asked industry leaders to answer three questions: how the channel has developed, whether small players can compete, and what comes next.
Contributors include:
- Lesley Myers-Lamptey, head of commerce strategy at T&P
- Scott Cunningham, chief product officer at AAM
- Victoria Peopall, client success director at Epsilon
- Ollie Shayer, senior director of global strategy and innovation at SMG
- Sean Crawford, managing director of North America at SMG
- Lee LeFeuvre, interim CEO at SMG
Retail media is one of the fastest-growing channels – what do you put that down to?
Its ability to close the loop between media investment and commercial outcomes
Victoria Peopall, Epsilon: “Retail media has grown because it’s grounded in something we can all get our heads around, which is real relationships.
“Brands are activating campaigns alongside their trusted retailers and, crucially, those relationships are more than ever underpinned by first‑party identity. That in itself has shifted retail media from a hopeful add‑on for impact to a now accountable channel, whereby brands can leverage their relationship with retailers to forge and foster new customer relationships and prove impact through closed‑loop measurement rather than assumptions.”
Scott Cunningham, AAM: “Bottom of the funnel conversion data.
“The retail media industry sits on a wonderful data source that brands can use to reach the addressable consumers they’re trying to reach.”
Ollie Shayer, SMG: “Retail media’s growth is often attributed to data, but that’s only part of the story.
“What’s really driving momentum is its ability to close the loop between media investment and commercial outcomes. In a landscape where accountability and efficiency are under increasing pressure, that’s a powerful proposition for brands.
“Retailers have built rich first-party data assets over time, but we’re now seeing the role of that data evolve from enabling targeting to powering more connected, full-funnel experiences. Shopping isn’t purely transactional; it’s shaped by context, emotion, and discovery, and retail media is uniquely positioned to influence those moments across the entire journey.
“What’s changing now is the level of integration. Retail media is moving beyond siloed activation into a more mature phase, one where on-site, in-store, and off-site channels work together to deliver cohesive, omnichannel experiences. Increasingly, it’s becoming the infrastructure that connects media, data, and commerce, rather than just another channel within the mix.”
Lesley Myers-Lamptey, T&P: “A few factors came together at one. Covid accelerated the shift to ecommerce, then the deprecation of cookies pushed brands towards first-party data, and the appeal of closed-loop measurement, all of which play directly into retail media’s strengths.
“But to be honest, Amazon has really been the catalyst.
“They account for over 70% of retail media revenue in the UK, and crucially, shown what’s possible, particularly by extending shopper data into environments like Prime Video. That’s where it gets really interesting, blending brand storytelling with the ability to drive and measure purchase in a seamless way.
“Now we’re seeing other retailers like Tesco and Sainsbury’s integrate with more partners using loyalty data to offer something similar. That’s what’s moving retail media from a purely performance channel into something much more full-funnel.”
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Can smaller players succeed in the market, or will global giants dominate?
Smaller players absolutely can succeed, but they have to lean into what makes them distinctive.
Sean Crawford, SMG: “Yes, smaller players can absolutely succeed in the marketplace, but it’s about playing to their strengths and recognising that success may not look exactly like it does for the largest players in the market.
“Smaller retailers can leverage their data and their unique value in the same way as a large retailer, but to be truly successful, that differentiated value must be extremely clear to brands; otherwise, they risk getting ignored. Moreover, smaller retailers may not have the resources or the capabilities to offer the same level of service as some of the largest retailers in the space.
“This can create headaches and inefficiencies for brands, especially in terms of activation and measurement capabilities. That means, to compete, they’ll have to work together with other Retail Media Networks, either other similar-sized networks or larger ones, through collaboration to offer their inventory to advertisers in an easy-to-access way.”
Scott Cunningham, AAM: “Smaller players can succeed. They compete at a different scale for national brand dollars. But smaller retail media networks with local brick and mortar will always have local and regional brands and agencies looking for addressable customers at the bottom of the funnel.”
Lesley Myers-Lamptey, T&P: “Smaller players absolutely can succeed, but they have to lean into what makes them distinctive. Retail media isn’t just a scale game; it’s a relevance game.
“A Screwfix customer, an ASOS shopper or someone buying from Harrods all have very different behaviours and intent, and that’s incredibly valuable to the right brand. If you’ve got a loyal, well-understood audience and can offer a strong data point to influence purchase, you’ve got something compelling.
“Ultimately, budgets in this space are very accountable; brands can see what’s driving sales. So, if smaller players can prove effectiveness, they will continue to attract investment and can succeed.”
Victoria Peopall, Epsilon: “Smaller players can definitely succeed, but they need to approach it differently than global giants.
“Retail media gives brands of any size a way to use their budget more efficiently, reaching high‑intent audiences with relevant messaging rather than relying on scale alone, which is crucial for any smaller player where efficiency is key. Smaller players could avoid spreading their budget across three channels where impact is diluted, for instance, and instead choose activations that complement where they’re trying to see results.”
Measurement in retail media: Why getting it right matters more than ever
What do you predict will be the biggest development in retail media over the next 12 months?
Retailers will start embedding more AI into their own ecosystems.
Lesley Myers-Lamptey, T&P: “AI will dominate the conversation, particularly agent-led or assisted commerce, but I think the nuance is important. Yes, discovery is increasingly shaped by LLMs, but we’re seeing this traffic is often higher-intent, not lower.
“Retailers will start embedding more AI into their own ecosystems; Amazon already has it with Rufus and Tesco’s exploring it, but people still want a level of control and reassurance in their decisions. So it’s less about replacing the journey and more about enhancing it.
“I think the bigger shift will be towards stronger brand building within retail media and the agentic commerce space. As AI shapes consideration, brands will need to invest more in content and long-term equity, not just conversion.”
Lee LeFeuvre, SMG: “The biggest shift over the next year will be greater collaboration and the dismantling of the silos that have, until now, limited true maturity and sophistication.
“Scale has been the defining driver of success in commerce media. Networks have grown rapidly by monetising audience size, data, retail strength, and the breadth of inventory available to advertisers. At the same time, the role of commerce media has expanded beyond the lower funnel to span the full consumer journey. As a result, expectations have risen significantly.
“To meet those expectations, retailers need to break down internal silos, rethink how commerce media connects to broader business objectives, and embrace more collaborative ways of working. This is about aligning teams and partners to deliver more effective, end-to-end commerce experiences.
“At a minimum, this means stronger internal synergy. But it will also likely extend to more fundamental shifts, including increased collaboration between commerce networks themselves.”
Victoria Peopall, Epsilon: “The biggest developments won’t come across a whole host of new propositions, but rather existing propositions getting more sophisticated.
“Faster set‑up, easier execution and clearer metrics will be the real differentiators because brands are no longer necessarily questioning the value of retail media. Rather, they want to understand how quickly and easily they can tap into it. This is driven by it firstly being identified as a pain point in market, and now complemented by the emergence of AI, which is easing what used to be a heavy and complex lift – both in producing reporting and building campaigns in a swift manner.”
Scott Cunningham, AAM: “Improved measurement and assurance around incrementality. There are a lot of interesting emerging products and methodologies that tie media investments to conversions. More robust third-party assurance around the industry standards and guidelines will improve measurement, create more apples-to-apples comparisons for brands and support the industry’s growth.”