As retail media enters its second act, savvy brands diversify networks and tactics

"With retail media now commanding 22% of total media budgets, the pressure to deliver more than a decent ROAS has reached a breaking point. In 2026, the brands that win will do more than buy shelf space; they'll be orchestrating entire customer journeys."

"Retail media's growth has historically been fueled by heavy investment in bottom-funnel formats, where retailer-reported ROAS often appears strongest. However, retail media has become a more comprehensive marketing vehicle - expanding beyond pure capture tactics and accommodating both top- and bottom-funnel tactics."

"As a result of this shift, marketers will have to reevaluate how they approach retail media and find a way to maintain their ROI on the channel as its growth levels out. Growth will be driven less by continued share gains and more by how effectively brands deploy retail media across tactics, retailers and throughout the funnel."

Retail media has transitioned from rapid growth driven by strong ROI to a mature market requiring strategic sophistication. With retail media now representing 22% of total media budgets, brands must move beyond simple shelf-space purchases to comprehensive customer journey orchestration. Growth will no longer come from market share gains but from effective deployment across multiple tactics, retailers, and funnel stages. The industry is shifting away from search-only, bottom-funnel focus toward integrated top- and bottom-funnel strategies. Measurement approaches must evolve beyond traditional ROAS metrics as incremental returns diminish. Simultaneously, marketers are diversifying spending across multiple retail media networks, with Amazon's market share declining from 56% to 46% as specialist networks gain adoption.

Read at Modern Retail