What is retail media strategy?

Retail media strategy is the plan governing how a brand allocates advertising budget across retailer networks — Amazon, Walmart Connect, Instacart, Kroger, Target and others — and how performance is measured. It sets which retailers to invest in, at what level, against which objectives, and how success is defined before campaigns launch.

Scope: Multi-retailer allocationInputs: Margin, distribution, categoryOutput: Budget plan + measurement frameworkHorizon: Quarterly to annual

A plan that makes every dollar work harder.

Retail media strategy is the discipline of deciding where to advertise, how much to spend, which products to prioritize, and how to measure what's working — across an increasingly complex ecosystem of retail media networks.

US retail media ad spend reached $60.32 billion in 2025 and is forecast at $71.09 billion in 2026, now representing roughly 30% of all US digital ad spending.[1] Amazon and Walmart alone are forecast to capture 89% of the incremental spend. At that scale and that level of concentration, the brands winning are not the ones spending the most. They are the ones with the clearest view of where their money should sit.

A mature retail media strategy goes beyond campaign management. It encompasses portfolio prioritization, platform selection by category, budget allocation by funnel stage, always-on vs. promotional planning, and an incrementality-first measurement framework that distinguishes real growth from recycled demand.

01

Portfolio Prioritization

Which ASINs or SKUs deserve ad support? Hero SKUs, new launches, and defensive plays each require different budget logic and KPI targets.

02

Platform Selection

Match platform to category and objective. Grocery brands prioritize Instacart and Kroger. Broad CPG needs Amazon and Walmart. DTC needs Google and Meta alongside retail media.

03

Budget Allocation

Divide budget across platforms, funnel stages (search vs. display vs. CTV), and campaign types — with clear gating conditions that trigger reallocation based on performance signals.

04

Incrementality Measurement

Attribution-based ROAS overstates performance. Incrementality testing reveals which spend is creating new demand — and which is capturing sales that would have happened anyway.

Strategy pillars

The framework that drives sustainable growth.

FULL-FUNNEL

Always-On + Promotional Planning

Retail media is most efficient when always-on campaigns (brand defence, category search, retargeting) run continuously — with promotional bursts layered on top for key sales moments. Brands that run retail media only during promotions pay premium CPCs without the baseline data needed to optimize.

Always-OnSeasonalPromotional Windows
ALLOCATION

Data-Driven Budget Frameworks

Budget decisions should flow from ROAS, iROAS, NTB rate, and category share data — not last year's plan. We build dynamic allocation frameworks that shift spend toward platforms and products delivering incremental growth, with explicit decision rules for when to scale or pull back.

iROASNTB RateMMMShare of Voice
MEASUREMENT

Unified Reporting Architecture

With 10+ retail media networks each using different attribution windows, metrics, and definitions, consolidating performance into a single view is as strategic as the campaigns themselves. We build cross-platform reporting that makes the data comparable and actionable.

Cross-PlatformAttribution NormalisationWeekly Cadence
$71.09Bforecast US retail media ad spend in 2026, up from $60.32B in 2025 [1]
89%of incremental 2026 retail media spend forecast to go to Amazon and Walmart alone [1]
71%of advertisers rank incrementality as their number one retail media KPI [2]
~30%of all US digital ad spending is now retail media [1]

Strategy is the work before the campaigns.

🗺

Category diagnostics first

Before recommending spend, we audit category dynamics — competitor ad presence, share of voice gaps, seasonal demand curves, and platform-specific conversion rates — to identify where incremental opportunity actually exists.

💡

Platform selection logic

Not every brand should be on every platform. We map your category, distribution footprint, margin profile, and growth objectives to determine which 2–4 networks deserve meaningful investment — and why.

📋

90-day action plans

Every strategy engagement delivers a prioritised 90-day roadmap with clear decision gates, spend thresholds, and measurement milestones — so the strategy is executable, not theoretical.

The vocabulary

What are the building blocks of a retail media strategy?

Retail media network (RMN)
A retailer's advertising business, selling access to its shoppers and first-party data. There are now hundreds in the US, though spend is heavily concentrated in a handful.
Commerce media
The broader category including retail media plus any platform with transaction data and first-party customer relationships — travel, delivery, financial services and marketplaces.
Budget allocation
How spend is split across retailers, formats and objectives. The decision with the largest effect on outcomes, and the one most often made by inertia rather than analysis.
Margin-based targets
Setting ROAS and ACOS targets from contribution margin rather than from published benchmarks. The only defensible way to set a target, because a benchmark knows nothing about your P&L.
Objective separation
Budgeting acquisition, defence, harvesting and launch separately. Without it, acquisition always loses the efficiency comparison against harvesting and is quietly defunded.
Halo and total ROAS
Revenue that follows ad exposure across your catalogue, not just the advertised product. Total ROAS is the right basis for budget decisions; same-SKU ROAS is the right basis for bid decisions.
New-to-brand (NTB)
Acquisition of shoppers new to the brand. Definitions and lookback windows differ by network, so NTB is a within-account trend metric, not a cross-network benchmark.
Incrementality
Whether the ads caused the sales. The measurement question that determines whether a retail media budget survives scrutiny. See incrementality.
Retail readiness
Stock, buy box, content and pricing. Media spend against an unready listing converts poorly regardless of targeting, which makes retail readiness a strategic input rather than an operational detail.
Trade and shopper marketing overlap
Retail media budgets frequently come from trade rather than media. That determines who signs off, what counts as success, and whether a media argument or a commercial one is the one that needs to be won.

Comparisons

How does this compare to the alternatives?

Concentrating on Amazon vs diversifying across networks

The central allocation question, and one where the honest answer depends on your distribution rather than on a trend.

Amazon-concentratedDiversified
Best whenMost of your sales genuinely happen on AmazonMeaningful revenue sits with Walmart, grocery or club channels
AdvantagesDeepest tooling, clean room measurement, mature auctionsReaches shoppers Amazon does not; less auction pressure
RisksRising CPCs, platform dependency, no visibility outside AmazonOperational complexity; fragmented and non-comparable reporting
MeasurementAMC gives genuine depthNo cross-network clean room; measurement must be assembled
When to use whichMatch media allocation to actual revenue distribution, not to where reporting is easiest. The most common failure is a brand with 40% of sales through Walmart and grocery spending 90% of its retail media budget on Amazon — because that is where the tooling and the habits are.

ROAS-led vs incrementality-led budgeting

Two ways to decide where money goes, producing very different portfolios.

ROAS-ledIncrementality-led
Decision basisReported return by campaignMeasured causal lift
Tends to favourBranded terms, retargeting, existing customersAcquisition, upper funnel, new audiences
CostLow — uses existing reportingHigher — requires test design and held-out spend
Failure modeEfficiently buying sales you already hadOver-engineering measurement on budgets too small to test
When to use whichROAS-led budgeting is cheap and quietly shrinks brands over time by rewarding demand harvesting. Incrementality-led budgeting is more expensive and more correct. Most brands should run ROAS-led operations with periodic incrementality tests calibrating the targets, rather than choosing one absolutely.

In-house vs agency vs specialist consultant

The delivery model question, stated plainly rather than as a pitch.

In-houseFull-service agencySpecialist consultant
Best whenVolume justifies dedicated headcount and platforms are fewYou need scale, many markets, and broad channel coverageYou need depth in specific platforms or a defined problem solved
Cost modelSalaries and toolingRetainer, often percentage of spendRetainer or project
RiskKey-person dependency; limited cross-account pattern recognitionJunior delivery behind senior pitch; incentive tied to spendCapacity limits; less suited to very broad multi-market scale
When to use whichNone of these is universally right. Large multi-market programmes genuinely need agency scale. Brands with a defined problem — a platform that is not working, measurement that cannot be trusted, an audit before an investment decision — usually get further with a specialist than with a pod. Be honest about which situation you are in.

Real results

What does this work look like in practice?

Industry · National Food Brand

Creating a cross-retail media investment framework

Challenge

Each retail media network was managed independently, making strategic investment decisions difficult.

Our approach

  • Developed a unified retail media strategy
  • Defined channel objectives
  • Established measurement standards
  • Built investment planning frameworks

Business impact

Leadership gained a consistent decision-making framework across Amazon, Walmart, Instacart and additional retail media platforms.

Case studies are presented by industry rather than by client name. Figures are drawn from live account analysis. Engagements marked prior agency engagement were delivered by Ana Perez Ibarz in a previous agency role; the work and results are hers, the client relationships were the agency's. TNOMADS does not identify clients or publish client performance data without written consent.

Frequently asked questions

Common questions, answered directly.

The plan governing how advertising budget is allocated across retailer networks and how performance is measured. It defines which retailers to invest in, at what level, against which objectives, and what success means — before campaigns are built.
US retail media ad spend is forecast at $71.09 billion for 2026, up from $60.32 billion in 2025, and now represents roughly 30% of all US digital ad spending. [1]
Start from where your revenue actually is. If Walmart is 30% of your retail sales, a 5% share of retail media budget is difficult to defend. Then adjust for auction density, retail readiness by retailer, and where you have realistic room to grow share.
Enough to hold your position, and no more than your revenue distribution justifies. Amazon is forecast to capture the large majority of incremental retail media spend alongside Walmart, but that reflects aggregate market behaviour, not your specific channel mix.
From your contribution margin and your objective, not from a benchmark. Work out what return the business needs at each stage — defending an existing SKU, acquiring a new customer, launching a product — and set separate targets for each rather than one blended number.
Because they aggregate across categories, price points, margins, attribution windows and funnel mixes that have nothing to do with your business. A benchmark can tell you a category norm exists; it cannot tell you what your account should be doing.
Same-SKU ROAS counts revenue only from advertised products. Total ROAS includes halo revenue across your catalogue. Use same-SKU for bid and campaign optimisation; use total for budget decisions, because budget moves affect the whole catalogue.
Separately, with separate targets. If acquisition and harvesting compete for the same budget on the same efficiency metric, harvesting wins every time and acquisition disappears — usually without anyone deciding to defund it.
Stock, buy box, content quality and pricing. Advertising a product you cannot reliably sell converts poorly regardless of targeting. In practice, retail readiness problems are the most common reason a well-built media plan underdelivers.
It is frequently funded from trade, which changes who approves it and what counts as success. This matters more than it sounds: the arguments that win a media budget conversation are different from the ones that win a trade conversation.
Materially, quarterly. Retail media platforms change faster than annual planning cycles accommodate, and both auction conditions and retailer capabilities shift within a year. An annual plan with no quarterly revision is usually a year out of date by Q3.
Carefully, and often you cannot compare directly. Attribution windows, NTB definitions and whether in-store sales are included all differ. Define your own consistent internal metrics and track each network against its own trend rather than ranking them against each other.
A retailer's advertising business, selling access to its shoppers and first-party purchase data. There are hundreds in the US, but spend is heavily concentrated — a small number of networks capture the overwhelming majority of investment.
Only where you have real distribution and a specific reason. Smaller networks carry the same operational overhead as large ones with a fraction of the reach, and reporting is usually thinner. Spread too widely and you get noise across many accounts rather than signal in any.
Look at total business outcomes rather than platform-reported returns: total revenue growth, TACoS trend, new-to-brand rate and, where budget allows, incrementality testing. Platform-reported ROAS improving while total sales flatten is a warning sign.
The broader category including retail media plus any platform with transaction data and first-party customer relationships — delivery apps, travel platforms, financial services and marketplaces. The measurement principles are the same; the audiences are not.
It creates the demand retail media captures. Without something upstream — Amazon DSP, Google Ads, social or CTV — a retail media programme increasingly competes for a fixed pool of existing demand at rising cost.
For a single-retailer brand, a few weeks. For a multi-brand, multi-market portfolio, longer — most of the time goes into establishing comparable data across networks that report incompatibly, not into the strategic thinking itself.
No, but you need a position on it. You can run a coherent strategy on reported metrics as long as you understand how they overstate performance. See incrementality for what a test actually requires.
Consolidation gives you consistent measurement definitions and one accountable party, which is worth a lot. It costs you specialist depth on individual platforms. Larger programmes often use a lead partner with specialists on specific networks.
Audit what you currently have before planning anything new. Most accounts contain enough structural waste that fixing it funds a meaningful share of the new plan. See retail media audit.
In business terms, not platform terms. Total revenue, TACoS, contribution after advertising, new customer acquisition cost and the trend over time. A deck of platform ROAS figures answers a question no CFO asked.

Why build strategy with TNOMADS?

13+years across retail media and performance marketing
11+platforms managed live, not summarised from vendor decks
P&Ltargets set from your margin, not from published benchmarks
1:1strategy written by the person who will run it

About the author

Who wrote this page?

Ana Perez Ibarz

Senior Retail Media Consultant

Amazon AdsAmazon DSPAmazon Marketing Cloud Walmart ConnectInstacartRetail Media Strategy

Last reviewed 16 August 2026

Ana Perez Ibarz is the founder of TNOMADS Consulting and has spent 13+ years in retail media and performance marketing. She manages live campaign operations across Amazon Ads (Sponsored Products, Sponsored Brands, Sponsored Display, DSP and Amazon Marketing Cloud), Walmart Connect, Instacart, Kroger Precision Marketing, Target Roundel, Loblaws Advance, DoorDash, Criteo, Google Ads and Meta.

On strategy work, Ana builds multi-platform allocation plans, gating frameworks tied to retail readiness, and measurement definitions that hold across networks with incompatible reporting. Because she also runs the campaigns, the strategy is constrained by what can actually be executed — which is the main difference between a plan and a deck.

She works as a subcontracted specialist for agencies as well as directly with brands, and writes on retail media measurement, incrementality and commerce media architecture. Based in Granada, Spain; operating across North America and Europe.

More about Ana and TNOMADS →

Sources

Where do these figures come from?

A note on these sourcesRetail media forecasts are not directly comparable across research firms. eMarketer, WARC and IAB/PwC each define what counts as retail media differently, so figures from different sources should not be combined in a single comparison. The figures on this page are eMarketer's December 2025 forecast vintage; forecasts are revised throughout the year.

Related services

What should you read next?

Retail Media Audit

The diagnostic that should precede any new strategy.

Incrementality

How to test whether the plan is actually adding sales.

Amazon PPC

Usually the largest single line in the plan.

Walmart Connect

The second network for most CPG brands with Walmart distribution.

Instacart Advertising

Multi-retailer grocery reach in a single buy.

Amazon DSP

The upper-funnel layer that keeps the search layer from stalling.

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