Retail Media Surpasses Linear TV in Ad Spend
In a transformative shift for the advertising industry, retail media has overtaken linear TV in advertising spend for the first time, according to WPP’s latest Media report. This milestone reflects a broader evolution in how brands reach consumers, especially as shopping behaviors continue to migrate online.
The report, authored by Kate Scott-Dawkins, Global President of Business Intelligence at WPP, underscores how commerce — rather than traditional creativity — is increasingly becoming the engine driving advertising growth. This pivot is not only redefining media strategies but also prompting agencies and brands to reimagine their content, targeting, and measurement approaches.
Commerce-Driven Growth Redefines Strategy
“Advertising is going to look different,” Scott-Dawkins stated. “The way we think about creativity, media planning, and measurement is fundamentally changing as commerce becomes the focal point.”
Retail media, which includes advertising on e-commerce platforms such as Amazon, Walmart Connect, and Instacart, offers real-time data, precise targeting, and measurable results — all key components in today’s ROI-focused marketing environment.
Unlike traditional TV, where impact is harder to quantify, retail media allows brands to link ad impressions directly to sales. This transparency is attracting increased investment from both digital-first and legacy brands eager to maximize their marketing budgets.
Data and Technology Drive Personalization
One of the defining characteristics of the retail media boom is its data-rich environment. With access to first-party data, brands can deliver personalized messages at the point of purchase, dramatically improving conversion rates.
Scott-Dawkins emphasized that the convergence of media and commerce is creating a feedback loop where data informs creative execution, which in turn drives further data collection and optimization. “This cycle is enabling brands to be more agile, responsive, and customer-centric than ever before,” she noted.
Furthermore, advances in artificial intelligence and machine learning are making it easier for advertisers to automate and optimize campaigns in real time, enhancing both efficiency and effectiveness.
Creativity Still Plays a Crucial Role
Despite the dominance of data and commerce, Scott-Dawkins believes that creativity remains essential to successful advertising.
“Data may tell us who to target and when, but it’s creative that captures attention and builds emotional connections,” she explained. “The most successful campaigns will be those that marry the science of data with the art of storytelling.”
This means that while the mechanics of advertising are evolving, the core principles of brand-building — trust, engagement, and differentiation — still hold true. Agencies are now challenged to integrate creative excellence with tech-driven precision.
Retail Media Ecosystem Expanding Rapidly
The report highlights how major retailers are investing heavily in building their own media networks. From grocery chains to big-box stores, companies are leveraging their customer data and digital platforms to create new advertising opportunities.
This proliferation of retail media networks is not only reshaping budgets but also altering the relationships between retailers, brands, and media buyers. As Scott-Dawkins pointed out, “We’re seeing a decentralization of media buying. Brands must now navigate a complex ecosystem of platforms and partners.”
In response, agencies are developing new capabilities and partnerships to help clients manage this growing complexity. Specialized teams focused on retail media strategy, data integration, and performance measurement are becoming the norm.
Outlook for 2025 and Beyond
Looking ahead, Scott-Dawkins predicts that the lines between content, commerce, and community will continue to blur. Social commerce — where users discover and purchase products directly through social platforms — is expected to see strong growth, especially among Gen Z consumers.
She also anticipates increased investment in immersive technologies such as AR and VR, which can create engaging, interactive shopping experiences. These innovations will further expand the ways in which brands can connect with audiences in the digital space.
“The future of advertising is not just about selling products,” she concluded. “It’s about creating value-driven experiences that resonate with consumers on multiple levels.”
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.