Retail media companies are increasingly leveraging AI to enhance ad performance, optimize inventory, and provide personalized experiences, ultimately driving higher revenue and greater value for advertisers.
Here are some key ways AI is transforming retail media monetization:
Retail media networks (RMNs) use AI-driven first-party data to serve hyper-personalized ads based on browsing behavior, purchase history, and real-time intent signals.
Example: Amazon Ads – Uses AI to power Amazon Marketing Cloud (AMC), enabling advertisers to analyze consumer journeys and optimize ad placements across its ecosystem.
AI enables automated creative adjustments based on user behavior, geography, and purchase stage, ensuring higher ad relevanceand performance.
Example: Criteo – Uses AI-driven DCO to create personalized product recommendations in display ads, increasing conversion rates for brands advertising on retail sites.
Retailers optimize ad auctions using AI to maximize click-through rates (CTR) and return on ad spend (ROAS). AI also helps surface the most relevant products in search results.
Example: Walmart Connect – Uses machine learning (ML) to predict the likelihood of a shopper clicking on a sponsored product ad and adjusts bidding accordingly to improve ad efficiency.
Retail media networks use AI to analyze past campaign performance, competitor data, and real-time market trends to suggest optimal bid strategiesand budget allocations.
Example: Instacart Ads – Uses AI-powered automation to recommend bid adjustments for CPG brands, helping them maximize visibility while maintaining profitability.
AI-powered tools generate product descriptions, ad copy, and banner creativesdynamically, reducing manual effort and speeding up ad deployment.
Example: Zepto employs Generative AI to automatically generate product descriptions for its app and website, ensuring consistency and SEO optimization. Additionally, AI helps Zepto create social media ad copies and push notifications tailored to user behavior and preferences, increasing engagement with real-time, AI-personalized messaging.
AI helps brands measure true ad impact by distinguishing between organic and paid conversions, enabling smarter investment decisions.
Example: Albertsons Media Collective – Uses AI to provide multi-touch attribution models, helping advertisers understand how retail media ads contribute to sales across online and offline channels.
AI enables RMNs to extend audience targeting beyond retailer websitesto social media, CTV, and programmatic channels.
Example: Kroger Precision Marketing (KPM) – Uses AI to retarget high-intent shoppers on external platforms like Meta and The Trade Desk, increasing ad reach while maintaining relevancy.
AI is revolutionizing retail media monetization by enhancing targeting, automating ad creatives, and improving measurement. The brands and retailers that effectively integrate AI into their retail media strategies are not only generating higher revenues but also delivering superior ad experiences for their customers
