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FEBRUARY 2, 2026 |
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While this doesn’t signal a full retreat from physical retail, it does underscore Amazon’s growing emphasis on digital grocery, which has clear implications for its retail media strategy. Instead of prioritizing advertising tied to physical stores, Amazon is doubling down on media formats that can scale well beyond its owned retail footprint. |
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Out of the box: As nearly all (99%) of Amazon searches show sponsored products, according to 2025 Pentaleap data, Amazon is seeking other places to scale its retail media business. This is increasingly taking the form of off-site media. |
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Amazon’s US off-site retail media ad revenues will grow 32.6% this year, making up nearly 70% of total off-site retail media spend, according to a December 2025 EMARKETER forecast.
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That scale reflects strong advertiser demand, as well as Amazon’s ability to activate first-party purchase data well beyond its owned properties. |
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In the coming year, experts believe retailers will aim to consolidate their operations and link retail media silos with broader organizations. |
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This consolidation could help retail media networks scale, overcome barriers to reaching customers in-store, and tap into a significant revenue stream. |
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