Will Agentic Commerce kill Retail Media?
by Marcel Hollerbach · World of Commerce
Will Agentic Commerce kill Retail Media?
Retail Media Networks (RMNs) are a major growth engine for retailers right now. It’s when a retailer (like a major supermarket or e-commerce site) sells advertising space on their own platforms (website, app, in-store screens) to the brands they carry.
But this requires consumers to actually go on those websites and not have an agent do the shopping for them. There is no monetizable traffic for retailers if agents do all the heavy lifting.
📈 Some RM Growth Statistics
Global Spend Forecasts: Worldwide retail media ad spend is projected to hit
$140 billion in 2024, representing an increase of almost 22% on 2023 spend (eMarketer via Brand Nudge).
CAGR: The global Retail Media Networks market is expected to record a 20.1%
CAGR from 2025 to 2034.
Market Share: Retail media is increasingly eating into broader ad budgets. Some estimates suggest that 20% of all digital ad spend in 2024 was pushed through retail media. GroupM believes retail media ad spend will surpass TV ad spend by 2028.
💰 Margin Analysis The high-margin nature of retail media is its biggest draw for retailers, who often operate on thin product margins (typically 2-5%).
On-site advertising (ads on the retailer's own website/app) is the most profitable segment, with observed margins often reported between 70% and 90% (Boston Consulting Group, Mirakl). This is due to high relevance and minimal overhead costs relative to the revenue generated.
While Agentic Commerce is a huge opportunity it is also a thread to Retail Media initiatives being launched that are hugely profitable for retailers.
#RetailMedia #AgenticCommerce #Ecommerce #FeedManagement #Syndication #PerformanceMarketing