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Retail Brew

Retail Media

Erin Cabrey

retailbrew.com

Albertsons is piloting digital ad displays in stores this summer, the grocer announced today during the Cannes Lions in France.

Its retail media arm, Albertsons Media Collective, is partnering with digital solution company Stratacache for the pilot, which will see digital screens deployed at stores in two regions, its Northern California and Jewel-Osco divisions, this summer. The screens will be placed in “high-traffic areas with impactful touchpoints in the customer journey” throughout the store, the company said, including the store entry and produce department. The company is showcasing the new advertising features at a mock grocery store set up at Cannes this week.

Liz Roche, Albertsons Media Collective’s VP of media and measurement, said in a statement the grocer partnered with Stratacache as its technology enables “closed-loop measurement,” noting that “understand[ing] performance helps us fully realize the potential of the in-store channel.” Albertsons said brand partners will be able to measure their ads’ impact including direct sales attribution and sales lift. Standardization of data reporting across retail media networks continues to be a 

Oreo maker Mondelez will be the retailer’s first CPG partner, Albertsons said. Mondelez previously 

 with Albertsons and Fetch on a new retail media integration last year.

Melissa Pitmon, customer director of omnichannel activation of Mondelez, said the screens will allow the brand to market “hyper-relevant content right where purchase decisions are made.”

“It’s a natural complement to our digital strategy and a powerful reminder that the store remains one of the most influential spaces to build brand connection and drive conversion,” she said.

Albertsons said it has a “comprehensive” plan for rolling out the tech to other stores following the pilot.

 the majority of grocery shoppers still shop in stores. As such, adoption of 

 has gained steam among grocers as they look to capture shoppers’ eyes and double down on this additional revenue stream. Analysts 

 last year Albertsons might work to expand its ad business to grow after its 

 have also both recently made strides in in-store digital advertising through partnerships with Grocery TV. (Trader Joe’s, on the other hand, 

EMarketer has forecasted in-store retail media ad spending will hit $1 billion in 2028—but still account for just 1% of omnichannel retail media ad spend.

Albertsons to pilot in-store digital ad displays  

The grocer is partnering with Mondelez on the effort to expand its retail media business. 

Vidhi Choudhary

Retail media is a daunting space for retailers as they keep up with the dual pressures of the pace of growth and relentless evolution.

To rise above the competition, CVS is partnering with social platform Reddit to run pure play digital ad placements.

“Retail media is perfectly positioned to really connect consumers across multiple platforms,” Parbinder Dhariwal, VP and general manager at CMX, CVS’s retail media arm, told Retail Brew.

On Reddit, CVS will concentrate on promoted posts and conversation placements, which organically match user behavior on the platform. These ads will enable brands to generate traffic and sales by naturally joining trusted conversations between users in relevant communities, the company said in an email.

The next phase of retail media, Dhariwal added, involves “co-creation” and “collaboration.” The idea with the partnership is to develop shared platforms, create content within existing platforms, and build audiences together to connect consumers back to the CVS shopping experience.

“You’ve got synergies in terms of content, how consumers are searching for content, and where they look for content, especially around health and wellness,” Dhariwal said. “The forums and the environment that Reddit creates is much more around discoveries. And we see a very unique opportunity here on being inserted into that conversation—more importantly, inserting the brands and advertisers that we’re working with into that [conversation].”

CVS will test the partnership in beta in Q4 by running ads from consumer healthcare brand 

, which sells Sensodyne, Advil, and Tums.

For Reddit, it’s an opportunity to convert more users into shoppers on its platform. With shopping ads playing a major role in its ad growth, Reddit’s latest ad revenue 

“Reddit is where high-intent shoppers come not just to browse, but to engage in real conversations, especially when it comes to health, wellness, and beauty,” Mike Romoff, chief revenue officer at Reddit, said in a statement. “By collaborating with CMX, we’re connecting that unique intent and authenticity with the scale and physical presence of CVS, creating a seamless path to purchase experience for shoppers.”

Ultimately, Dhariwal said, “this is a bigger conversation on collaboration and co-creation together, because that’s where we see the ball really moving.”

CVS launches new retail media ad partnership with Reddit 

CVS plans to test run some digital ads on Reddit forums in Q4 with consumer healthcare brand Haleon.

Reddit recently rolled out its main shopping ad solution, Dynamic Product Ads (DPA), to all advertisers globally with the expectation to make shopping a big part of the social media platform.

Reddit launched DPA in beta in 2024. This year, the companies testing the new ads with their regular campaigns saw double the return on their ad spend compared to standard ads alone, the platform said. Plus, there are now four times as many product catalogs running on Reddit compared to a year ago.

DPA works by automatically creating personalized ads for each user. It pulls products straight from a company’s catalog and figures out which products to show to which user based on what they’re interested in and what conversations they’re having on Reddit. The ad tool uses AI-powered product matching with real-time catalog data. It combines on-platform engagement plus off-platform behavior for precise targeting.

Reddit’s new ads are similar to personalized product ad solutions offered by other major ad platforms like Amazon’s sponsored product ads and Google’s performance max ad units.

Brands like The Home Depot and Lenovo have tested the new ad unit. In a 

, Reddit’s Industry Director of Tech and Telco Taylor Gagliardi shared that Lenovo saw a 

 in purchases, more than 19.3% lift in page visits, and more than 5% lift in add-to-carts after testing dynamic product ads between October and December last year.

“It’s a smart, strategic response to changing shopper behavior, meeting people in trusted, research-driven conversations where purchase decisions are actively taking shape,” Gagliardi wrote on LinkedIn.

For the first quarter of 2025, Reddit’s advertising revenue jumped 61% to $358.6 million.

On an earnings call Reddit COO Jennifer Wong noted that the company has made upgrades to dynamic product ads by making it easier to use for brands: “In the quarter, we improved our DPA format in two areas—performance and ease of use—and we’re excited about the roadmap for the rest of the year.”

“We’re continuing to deploy conversion and click prediction model improvements, enabling advertisers to onboard larger product catalogs with millions of products to deliver more relevant ads,” Wong added.

Overall, Reddit’s ad roadmap depends on the platform’s ability to deliver profitable outcomes to brands.

Shopping ads are becoming a big deal on Reddit 

Reddit’s ad roadmap depends on the platform’s ability to deliver more profitable outcomes to brands. 

As the noise around a US recession grows louder, advertiser demand is expected to take a hit, and retailers banking on ad revenue from retail media might need to look elsewhere for spare change.

Retail media, growing at roughly 20% YoY, has become a core component of planning between brands and retailers, making it less susceptible to media market volatility. However, since it’s a relatively new marketing channel and hasn’t been through a significant recession yet, it’s hard to say definitively, experts told Retail Brew.

Separately, advertising research firm World Advertising Research Center (WARC) has 

 its global advertising forecast by $19.8 billion, citing overall macroeconomic uncertainty.

As advertisers face intense scrutiny to justify ad spend, three experts told Retail Brew that

while retail media isn’t immune from a recession, it may be more resilient compared to other advertising channels.

The throughline is advertisers tend to rely on performance-based ad channels with measurable ROI during economic downturns.

 “I don’t think it’s recession proof, but retail media is more recession resistant than other channels,” Andrew Lipsman, independent analyst at Media, Ads + Commerce, told Retail Brew. “The primary reason for that is that in recessionary times, there tends to be a flight to certainty—in this case, a flight to performance advertising—where CFOs are demanding higher accountability for media spend. So, retail media, by virtue of being very measurable and also tying directly to brand sales, is one that’s least likely to feel the effects.”

Neil Saunders, managing director at consulting firm GlobalData Retail, agreed that retail media might have a better chance to attract ad dollars given its ability to provide

“A recession will cause all companies to review marketing spend and this will put some pressure on retail media,” Saunders told Retail Brew in an email. “However, what firms will look for is the effectiveness of their marketing spend and they will try to consolidate it into channels that drive the best results.”

“On this front, I think retail media may be more recession-proof than other media,” Saunders added.

However, he warned that a recession would likely put “weaker players” within retail media at risk given the intense competition within the space.

 drop in confidence to increase retail media revenue amid fierce competition. To make matters worse, Lipsman said that if consumer demand for retail goes down, then advertising will likely follow suit. “So, it will move in correlation to depressed retail sales,” he added.

Even if retail media experiences a modest decline in spending, it’s still projected to maintain double-digit growth rates, unlike other traditional ad channels that may stagnate or contract during a recession, Lipsman added.

“But it also certainly could affect things like Facebook and YouTube and some of the big digital channels that play more to the upper funnel,” Lipsman added.

Gartner Senior Director Analyst Greg Carlucci said he is still more optimistic based on stats from Gartner’s 2024 CMO Spend Survey. Carlucci said that retail media networks accounted for about 8.3% of total paid media spend, and over one-third of CMOs surveyed by Gartner in 2024 said they would increase their investment in retail media.

“The exact percentages will change when the new data comes out in a few months, but…paid media is the largest share of the [overall marketing] budget,” he said. “And retail media is one of the fastest growing digital channels for consumer goods companies.”

Is retail media recession proof?

Experts suggest it may be more insulated than platforms like Facebook and YouTube, with projected double-digit growth potential.

The retail media landscape might be young, but it’s moving at breakneck speed in terms of competition—and retailers are increasingly feeling less confident in their ability to increase retail media revenue.

In four short years, retail media has exploded from being an $18.8 billion business to one that’s worth $54.9 billion, according to a new Retail Media Industry report by media buying firm Dentsu. And as the pie has grown, more and more players have jumped in to grab a piece.

Intense competition is why 78% of retailers surveyed expect retail media revenue to increase in the next three years, down from 91% last year, Dentsu reported.

“It’s a drop, but it’s still a lot of retailers that are saying, ‘I’m going to see revenue increase next year,’” Megan Cameron, EVP of new stream media at Dentsu’s retail media practice, told Retail Brew. “Perhaps that level of increase is going to be smaller and the increases will be harder fought and harder earned for those retailers that do see an increase year over year.”

Retailers that run an ads business are citing their own direct retail media networks as competitors, but also called out first-party data providers like Meta and YouTube as top competitors, the report stated.

“This year was the first year that we actually saw retail media networks respond as saying that first-party data providers and then media publishers are the No. 1 and No. 2 competitors as they go out into the marketplace,” Cameron said.

“The majority of them are saying that the No. 1 competitor that they go to market against is actually a first-party data provider. So, what that points to is we are seeing this competitive landscape increase exponentially,” she added.

The drop in confidence is because retailers are competing for the same ad dollars as tech giants like Meta. “They are sitting at the same table asking for the same investment from brands and advertisers that Meta is also sitting at, and that Pinterest is also sitting at, and that first-party data providers are also sitting at,” Cameron said. “That’s a really challenging place for most retail media networks to play.”

 Last year, Dentsu recorded a “huge surge” in specialty retail media networks, Cameron said, adding “it comes back to the fact that specialty retailers have a very unique audience and they have a very unique relationship with that audience.”.

The share of luxury retail as a category selling items on retail media rose 12 percentage points to 34% from 22% last year.

“It happens for luxury, but it also happens for sporting goods with Dick’s Sporting Goods, also happens in the hardware space with Home Depot and Lowe’s,” Cameron added. “Those are all places where the connection with the customer is really unique.”

For advertisers starting out in this space, Cameron’s word of advice is to not overlook those smaller retail media networks because they have a small but engaged audience.

“The smaller retail media networks oftentimes have a more niche or segmented audience offering than what an Amazon or Walmart or a national-scale player can provide you,” Cameron said.

“So, if you’re looking to test and learn with a very specific subset of an audience, if you’re able to find a smaller player that is more flexible on creative or reporting [data, and] is willing to meet you in your testing plans, that’s a really great place to be investing your time and energy,” she added.

 The Dentsu report points out that retail media serves publishers, tech partners, media networks, and more, and this convergence creates a significant opportunity.

 with digital publishers to expand their reach. In 2024, Instacart 

 with CNET. Such partnerships are expected to rise in 2025 because of a natural synergy between the two.

Retailers surveyed by Dentsu reported a skewed affinity to work with tech partners because they offer more targeted solutions. Dentsu reported retailers turned from larger providers to technology partners. Retailers partnered with 23 tech players including Trade Desk, PromoteIQ, and Placements IO.

Retailers report drop in confidence in retail media

That’s because retailers are competing for the same ad dollars as tech giants like Meta and YouTube.

Retailers report drop in confidence to cash in on retail media: Dentsu

 spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click 

Renee Caceres is head of retail media at digital advertising platform StackAdapt.

How would you describe your job to someone who doesn’t work in retail?

 Did you notice an ad for the cereal you’re almost out of while checking the score of last night’s game? Or when you were watching Hulu? Or when you were scrolling through your phone? Did you click on it? Did you buy it from your favorite retailer? You’re welcome.

One thing we can’t guess about your job from your LinkedIn profile?

 You might have guessed it, but let me confirm—this is one of the smartest, most collaborative groups of changemakers I’ve ever had the privilege of working with. What you wouldn’t guess from LinkedIn is the depth of innovation, heart, and pure grit that goes into our day to day. It’s a place where no two days look alike, that keeps me on my toes and constantly learning. Behind the scenes, we push each other to rethink challenges, pivot when we need to, and build where we can instill change. Our ethos is service, speed, and innovation and there’s a collective drive to see each other succeed both personally and professionally.

What’s your favorite project you’ve worked on?

 Hands down it was Fashion Week + Starbucks Frappuccino with PepsiCo. I was working at OMD, still early in my career and very new to NYC. We sponsored one of the fashion shows complete with specialty cocktails at the bar, swag bag inclusion, and green room placements. It was so much fun to be behind the scenes at an event as big as NYFW with a client as much fun as PepsiCo.

Which emerging retail trend are you most excited about right now, and why?

 I’m obviously biased in my answer, but I’d have to say retail and commerce media. There is such an exciting opportunity forming at the epicenter of retailer, brand, and customer, and if we do it right, everyone wins, especially the customer. I’ve been so inspired by the knowledge cross share of new RMNs, brand feedback, and agency lean-in to make the vision a reality. Democratization of retail and commerce media is both possible, and beneficial.

 I’m very seasonal, so in the summer it’s cold brew all day, and in the winter it’s an Americano. Black, no room for cream or sugar, just the good stuff! And speaking of good stuff, I’m partial to local or regional coffee shops because my dad had a coffee shop of his own when I was younger. Supporting small/local businesses whenever possible is incredibly important to me.

Worst piece of advice you’ve received? 

“Treat yourself.” While indulging here and there is super important, I would also recommend putting some guardrails around that. Which it turns out, I’m not really great at, and my credit card would agree. Honestly, I feel like I should be treated every day. “It’s Tuesday,” “I’ve earned it,” “But it’s on sale!” There can always be a reason if you really think about it. And unfortunately for my husband, I think about it a lot!

What was your favorite retail product when you were 15, and what’s your favorite retail product now? 

I have to be careful here or I’m really going to date myself, but I’d say a disposable camera. Not only do I miss the nostalgia of trying to get through an entire roll, but forgetting what was on there when you went to go get the photos developed. You could wait days, or weeks, for them to come back, only to find a solid one-third of them were blurry, darkened out, or of your index finger. Angles and posing weren’t top of mind; your only goal was to capture every moment, and make a giant scrapbook with the good ones. Today, I am loving my Grace & Stella under eye masks. With me traveling so much recently, I really couldn’t imagine not having them as my little travel companion.

Retail Brew coworking series featuring Renee Caceres. Credit: Renee Caceres

Coworking with Renee Caceres

She’s head of retail media at StackAdapt.

There is a lot going on in the grocery industry both positive and negative—from discussions on tariffs to soaring egg prices. However, grocery brands that have been keen on investing in the fast-growing retail media space may have one less thing to worry about.

Turns out Thrive Market isn’t burdening grocery sellers with yet another tech stack to plug into for advertising. When it comes to retail media, Thrive Market has done a couple of things differently than others. The online grocer chose to partner with Instacart instead of building its own retail media tech stack.

The rationale behind not building a standalone offering was to integrate with a provider like Instacart, where grocery brands were already spending their money, April Lane, chief merchandising officer of Thrive Market, told Retail Brew.

“There’s so many retail media networks out there, and frankly, for brands, it’s really hard to manage all of the different networks,” Lane said. “It was really table stakes for us that we’re not going to build something that’s completely standalone, where a brand needs to learn yet another system and optimize their ad dollars separately from other channels.”

Lane said Thrive Market saw its monthly ad revenue double initially, as more than 25% of brands began investing in the company’s ad business. Thrive Market sells close to 750 brands on-site and has more than 1.6 million paying members. Lane sat down with Retail Brew and talked us through Thrive’s retail media approach.

This interview has been lightly edited for length and clarity.

Talk to me about the elimination process. Why did Thrive Market choose Instacart?

We looked at Instacart, we looked at Criteo, we looked at PromoteIQ…I went to a few smaller players that…fell off the list quickly. But it really came down to two things really—it was brand preference. The brands are the ones using these platforms day in, day out to buy advertising. They need to love it, and they need to be using it. So we did a bunch of overlap analysis. We looked at, “OK, here are the brands we carry: Who’s working with whom? What’s the investment in sales resources behind that set of brands?” So we really wanted to make sure there was, I would say, commercial viability.

And then the second piece of it was really, who’s investing in developing unique ad products? That, to us, is really important. We didn’t want to just only have a set of me-too offerings.

We needed to find someone who was willing to think creatively about those problems with us, and who would prioritize us in that space. Instacart rose to the top of the list because they’re so focused on grocery. They understand this space better than most of the other players that have a much broader aperture.

What are you most excited about with your retail media plan this year?

I’m really excited to get display, shoppable display, and shoppable video [ads] up. Shoppable video ad placements will be the first time we’ve had video on our site. I’m incredibly excited to see how that drives member behavior and how the storytelling element of it changes the game. I think a lot of our brands have really cool stories to tell, and I think it’ll be an incredible format for them. So I’m excited for us about expanding ad formats. I think that’s going to be the name of the game for us this year in the industry.

For brands, what pain points are you trying to solve for?

The brands I’m talking to are always concerned about how [to] prove incrementality. How do they know that these ads are truly driving new revenue, and they’re not just paying for revenue they would have already had?

Incrementality is No. 1, and then No. 2, they’re looking for consistency across the formats. Right now, everyone has their own forms of measurement. It’s really hard to compare apples to apples. When you look at the metrics that are published, they’re all slightly different. I think brands are really looking for that kind of throughline that allows them to compare and be consistent.