What Happens to Retail Media When Agents Start Taking Over Shopping?

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Next in Media spoke with Sarah Hofstetter, chairwoman of Profitero, a division of Publicis, about the haves and have nots in retail media, whether the big players TV presence is going to cause a bifurcation in the market, and what agentic shopping might do to the whole category.

💡Takeaways:

• 💸 Retail Media Explosion & Consolidation: The retail media sector has seen significant growth, with major players like Amazon and Walmart developing substantial advertising businesses, leading to a tiered market with a few dominant players and a long tail of smaller networks.
• 🔄 Buyer vs. Seller Disconnect: There's a fundamental disconnect between media buyers who desire consolidation and retailers who view retail media as a crucial revenue stream from suppliers, creating tension in the market.
• 🛍️ Shifting Budget Allocation & Mindset: Traditional shopper marketing budgets, historically controlled by sales teams for in-store presence, are now clashing with digital media spending, requiring a shift in mindset within brands to prioritize "digital end-caps" like search and display.
• 🛒 Omnichannel Attribution Complexity: Measuring the impact of digital shelf presence on in-store purchases and vice-versa is a significant challenge, as current attribution models often fail to connect these fluid customer journeys.
• 🤖 AI's Impact on Shopping & Search: Agentic AI is poised to disrupt traditional search and shopping behaviors, compelling retailers, agencies, and brands to collaborate on co-creating future shopping experiences and leveraging AI for workflow automation and efficiency.

🎙 Guest: Sarah Hofstetter

🎤 Host: Mike Shields

📺 Sponsor: Walmart Connect

🎬 Producer: FEL Creative