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Home Marketing B2B Marketing

As retail media networks multiply, Amazon stands alone

March 6, 2023
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  • Amazon is a dominant force amongst retail media networks, commanding 37% market share in an area that’s estimated to be value $100 billion, in keeping with an evaluation MediaRadar shared with Marketing Dive.
  • The ad intelligence firm found Amazon attracted over 14,200 corporations representing 17,000-plus brands in 2022. General mass retailers, including Walmart and Target, made up the second-largest retail media allotment, or about 36% of the market.  
  • Amazon and mass retailers combined captured near two-thirds (73%) of spending, pointing to power consolidation with just a few large players. But MediaRadar emphasized that Amazon operates in a category all its own, meaning rivals might want to prioritize differentiation. 

Amazon is a little bit of a novel player within the retail media game in serving as an e-commerce platform first. The company’s roots and scale in digital provide it with a bonus over legacy brick-and-mortar stores as brands look to wed online campaigns closer to the purpose of transaction, particularly as performance media receives greater attention amongst CPGs. 

Amazon’s digital bona fides are strong enough that no competitors got here near capturing its share of retail media dollars last 12 months, even with a big selection of corporations — including behemoths like Walmart and Kroger — ramping up their network investments. Mass retailers as a vertical didn’t achieve Amazon’s share of the market as a standalone company. 

“Amazon has such a good grip on the digital space that they really sit in a category of their very own,” said Todd Krizelman, CEO and co-founder of MediaRadar, in a press release. “Other players are growing quickly, but it is going to be difficult for legacy brick and mortar retailers to beat Amazon by itself terrain.” 

Amazon within the fourth quarter of 2022 saw ad sales up 19% year-over-year to achieve $11.6 billion. For comparison, Walmart — which has significantly expanded its retail media operations and stands because the world’s largest brick-and-mortar business — notched $2.7 billion from ads for the complete 12 months.  

MediaRadar really useful that traditional retailers concentrate on channels where Amazon has less of an historic foothold to win over brand dollars. Those include in-store experiences, equivalent to screen touchpoints, and email marketing, in keeping with Krizelman. 

Amazon has recently piloted email tools to assist merchants higher connect with existing audiences, in addition to reach latest ones. It’s possible such offerings could develop into a much bigger piece of Amazon’s retail media strategy as ad sales turn right into a more significant profit driver. 

The top advertiser verticals on retail media networks last 12 months were consumer electronics (15% of total spend), housewares (6%), snacks and desserts (6%), household maintenance products (5%) and furniture and decor (5%), in keeping with MediaRadar. HP, Palmolive, Pepperidge Farm, Planters, Ritz, Epson and Starbucks were among the top brands cited. 

MediaRadar examined nearly 30 of the highest retailer sites for its research. The study’s sample, which focused on display and sponsored ads across key categories, represented about $5 billion in spending, the corporate said. Sponsored and display ads remain among the hottest decisions for brands using retail media, though the sector has expanded into other areas, including connected TV and video, which can be viewed as increasingly competitive. 

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