Retail media networks have been revolutionizing the way grocery advertising is done in recent years. With the rise of e-commerce and digital advertising, grocery retailers have found new ways to monetize their online platforms by offering advertising opportunities to brands looking to reach their target audience. In this report, we will delve into how retail media networks are changing the landscape of grocery advertising, including detailed information on financials, market share, volumes, and future plans.
The Rise of Retail Media Networks
Retail media networks have become increasingly popular among grocery retailers as a way to generate additional revenue streams. By leveraging their customer data and online platforms, retailers can offer highly targeted advertising opportunities to brands. For example, a grocery retailer may offer a brand the opportunity to display ads to customers who have previously purchased similar products or who are browsing specific categories on their website.
One of the key players in the retail media network space is Amazon, which has been able to leverage its e-commerce platform to offer highly targeted advertising opportunities to brands. In fact, Amazon’s advertising business has been growing rapidly in recent years, with revenue reaching $31.9 billion in 2024, up from $21.2 billion in 2023.
Other major players in the retail media network space include Walmart, Target, and Kroger, all of which have been investing heavily in their digital advertising capabilities. For example, Kroger recently launched its own media network, Kroger Precision Marketing, which offers brands the opportunity to target customers with personalized ads based on their shopping behavior.
Financials
The financials of retail media networks can vary significantly depending on the size and scale of the retailer. For example, Amazon’s advertising business has been growing rapidly, with revenue reaching $31.9 billion in 2024. In comparison, Kroger’s media network is still in its early stages, so its revenue is likely much lower.
In terms of profitability, retail media networks can be highly lucrative for retailers. By leveraging their customer data and online platforms, retailers can offer highly targeted advertising opportunities to brands, which can command higher prices than traditional advertising channels.
Market Share
Amazon currently dominates the retail media network space, with a significant market share in the e-commerce advertising market. According to eMarketer, Amazon is expected to capture 19.2% of all digital ad spending in the US in 2025, up from 15.4% in 2021.
Other major players in the retail media network space include Walmart, Target, and Kroger, all of which have been gaining market share in recent years. For example, Walmart’s share of the e-commerce advertising market is expected to reach 7.3% in 2025, up from 5.7% in 2021.
Volumes
The volumes of advertising on retail media networks can vary significantly depending on the retailer and the size of their online platform. For example, Amazon’s advertising business has been growing rapidly, with the number of ads served on its platform reaching 11.5 billion in 2024, up from 7.7 billion in 2023.
In comparison, Kroger’s media network is still in its early stages, so its volumes are likely much lower. However, as Kroger continues to invest in its digital advertising capabilities, we can expect to see an increase in the volume of ads served on its platform.
Future Plans
Looking ahead, the future of retail media networks looks bright. As more consumers shift their shopping online, retailers will continue to invest in their digital advertising capabilities to capture a larger share of the e-commerce advertising market.
For example, Kroger has ambitious plans to grow its media network and become a major player in the digital advertising space. By leveraging its customer data and online platform, Kroger aims to offer highly targeted advertising opportunities to brands looking to reach grocery shoppers.
Overall, retail media networks are changing the way grocery advertising is done, offering brands highly targeted advertising opportunities on retailers’ online platforms. As retailers continue to invest in their digital advertising capabilities, we can expect to see even more innovation in the retail media network space in the years to come.
For more information on the state of the global grocery retail industry in 2025, including trends, challenges, and opportunities, visit CulinaryCoverage.com.
