Retail media has spent the last few years chasing growth through connected TV, influencer partnerships, social commerce, and in-store screens. But new research from eMarketer and Bain & Company suggests retail media network leaders are shifting their focus back to onsite advertising, where retailers have more control, higher margins, and a more established path to advertiser budgets. In this episode, an expansion on my recent article for The Drum, I explore why offsite retail media has been harder to scale than expected, what advertiser demand tells us about the industry's biggest growth opportunities, and why proving incremental revenue remains a challenge.
I also look at the growing threat of AI shopping agents that could bypass retailer websites and disrupt traditional sponsored product ads. Is returning to onsite advertising a smart strategic move, or are retail media networks sacrificing future growth for easier wins today? Drawing on insights from eMarketer's Sarah Marzano and perspectives from the retail media community, I unpack the trade-offs facing retail media leaders and what it will take to unlock the next phase of growth.
This episode is sponsored by GrowthLoop
Timeline
[00:00] - Why retail media is moving back toward its roots, with onsite advertising emerging as a leading growth opportunity.
[02:35] - Sarah Marzano explains why retailers have more control, fewer third parties, and higher margins with onsite ads.
[04:11] - Why offsite retail media is harder to sell, including the challenge of reaching brand budgets beyond ecommerce and sales teams.
[06:22] - The disconnect between retail media's promised growth and advertiser demand for social and in-store placements.
[08:21] - The retail media doom loop: declining confidence in incremental revenue, talent shortages, and underfunded technology.
[11:33] - How AI shopping agents could bypass retailer websites and put traditional sponsored product ads at risk.
[13:20] - The debate over whether returning to onsite is a sensible strategy or whether offsite is essential for the next wave of growth.
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