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FEBRUARY 23, 2026 |
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Non-endemic advertising represents a significant growth opportunity for retail media networks (RMNs) as endemic brand advertising approaches saturation. This strategy allows retailers to monetize their first-party data by selling ad space to brands promoting products or services not sold by that retailer. With US retail media ad spend hitting $60.32 billion in 2025, retailers and advertisers alike are exploring how non-endemic partnerships can expand reach, unlock new revenue streams, and deliver relevant advertising experiences to shoppers. |
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What is non-endemic advertising in retail media? |
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Non-endemic advertising is a retail media strategy where retailers sell ad space to advertisers promoting products or services not sold by that retailer. It expands inventory beyond the retailer's own product catalog to complementary offerings. |
"If I'm the Home Depot and I'm serving a barbecue sauce ad next to a grill product, that might be a non-endemic advertisement," EMARKETER analyst Sarah Marzano explained. This differs from endemic advertising, where brands promote products the retailer carries. |
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Non-endemic ads can appear on-site (retailer websites, apps, in-store placements) or off-site (using retailer data to target audiences across other websites and platforms). While Amazon and Walmart have incorporated non-endemic advertising for years, broader adoption is accelerating as RMNs seek new growth avenues. |
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Walmart’s advertising business is scaling rapidly even as growth rates begin to normalize. |
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Walmart generated $6.4 billion in global ad revenues in 2025, including Vizio; up 46% YoY, according to Adweek. Walmart Connect in the US grew 41% in Q4 alone.
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YoY growth slowed to 37% in Q4 from 53% in Q3; CFO John David Rainey attributed the deceleration to scale effects rather than weakening demand. “You get to the law of large numbers,” he told investors, adding he does not see overall advertising progress slowing.
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The Vizio acquisition is contributing meaningfully; Rainey said the business saw triple-digit ad growth in the quarter and is selling inventory with a reported $200,000 minimum buy. |
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