Retail media is no longer a side experiment. It has become the fastest-growing segment of global advertising spend, with U.S. retail media ad investment projected to reach $100 billion by 2028, according to Adtelligent's market outlook. What was once a niche offering dominated by Amazon has expanded into a sprawling ecosystem where grocery chains, big-box retailers, and specialty brands all compete for advertiser dollars.
The format landscape is broadening rapidly. As The Drum reported, retail media in 2026 extends well beyond sponsored product listings. Off-site placements, in-store digital screens, and connected TV integrations are transforming it into a true omnichannel advertising strategy. Mars United's assessment noted that in-store retail media is experiencing particular momentum, with Kroger planning an aggressive screen rollout this year and Albertsons following close behind. Walmart and Instacart are expected to enter with more scalable in-store offerings, while digital signage spend alone is projected to surpass $500 million.
Europe is accelerating its own retail media push. According to InternetRetailing, European retail media spend is projected to reach 31 billion euros by 2028, nearly doubling in three years. The UK leads adoption, followed by France and Germany. While the region remains roughly two to three years behind the U.S. in maturity, grocery-led networks and pan-European media alliances are closing the gap quickly.
Artificial intelligence is rapidly becoming the operational backbone of retail media. As Criteo outlined, generative and agentic AI tools are removing much of the complexity from campaign management, automating optimization, and even drafting creative concepts and audience plans. Dunnhumby identified AI as both a capability layer being added to existing platforms and a lens through which new propositions are being developed, with use cases spanning campaign setup, analytics, insights, and content production.
Measurement and consolidation are also shaping the market's next chapter. Skai's industry predictions highlighted the growing availability of incrementality metrics and closed-loop measurement, giving advertisers greater confidence in attributing sales lift to specific retail media placements. At the same time, brands are simplifying their buying strategies by focusing on a smaller set of proven, trusted networks rather than spreading budgets across dozens of platforms. For retailers, the message is clear: scale, measurement rigor, and technological sophistication will determine who captures the next wave of ad spending.