"But retail media ads are effective they appear in such long lists of products, Shields argues. If purchase suggestions become tailored by AI chatbots, doesn't that mean fewer opportunities for consumers to see ads for alternatives? Besides, Shields says, the idea of an impartial AI shopping assistant feels incompatible with the Walmart deal. Will Walmart be ChatGPT's preferred retailer, for example, even if its prices are higher?"
"Yet, although AI shopping could dampen retail media, "it could just as easily drive retail media growth if AI search leads to more ecommerce activity overall," according to commerce media consultant Andrew Lipsman. Okay, fine. But if consumer habits shift away from search and toward personal assistants, Shields argues, Walmart could find its retail media revenue stream - which carried the retailer's ads business to 46% growth in Q2 - starting to run dry."
"Let's MRC What's New Snap sought MRC accreditation, but was denied in its bid for certification for its viewability metrics, clicks (formally called swipe-ups), paid reach and video duration-related metrics. GumGum, likewise, had its brand safety accreditation revoked due to withdrawal from the MRC program. (For those who might be wondering about all these opt-outs, accreditation is quite expensive.) Guess some folks still find the MRC seal is worth the dough."
Retail media ads gain effectiveness from appearing in long lists of products, increasing consumer exposure to advertisers. AI chatbots that tailor purchase suggestions could reduce opportunities for consumers to see alternative ads and may introduce bias if partnerships favor certain retailers. AI-facilitated search could also increase overall ecommerce activity and thereby expand retail media opportunity. A consumer shift from traditional search toward personal assistants could weaken retail media revenue for retailers that depend on ad sales, despite recent strong ad-growth figures. Separately, some platforms lost or withdrew MRC accreditation due to cost, while high-school sports streaming apps grew into an estimated $12 billion sector.
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