How to Get as Good at Retail Media as Amazon

Author

Tim Axon

Published

31 March 2025

The retail media landscape is experiencing an unprecedented surge, evolving from a supplementary revenue stream to a cornerstone of strategic growth for retailers.

Last year, U.S. retail media search advertising expenditure reached $33.86 billion, underscoring the sector’s robust expansion. Projections indicate that retail media will maintain a CAGR of 24.1% between 2025 and 2028, further cementing its position as the future of digital advertising.

Retail media is no longer an experiment; it is the battleground of modern retail success. Amazon, the undisputed leader, has built a retail media empire by seamlessly integrating advertising with e-commerce, leveraging first-party data to create precision-targeted campaigns. For other retailers looking to compete, the question is no longer whether to invest in retail media but rather how to do it at the same level as Amazon.

Optimise Like Amazon: The Power of Website Experience

Amazon’s dominance in retail media is not just about ad spend; it is about flawless execution. Their ability to deliver relevant, personalised, and data-driven ad experiences sets them apart. Any retailer looking to succeed must focus on website optimisation—making it frictionless, intuitive, and data-rich.

Consumers expect seamless digital journeys, and frustration quickly leads to drop-offs. We know that almost three-quarters (74%) of shoppers feel frustrated when website content is not personalised, yet many retailers still fail to deliver dynamic experiences that respond to real-time customer behaviour.

To match Amazon’s level of sophistication, retailers must:

– Ensure page speed and responsiveness: A one-second delay can reduce conversions by up to 7%.

– Integrate advanced on-site search and filtering: Amazon’s search function is its secret weapon

– Leverage dynamic content: Static pages no longer cut it; content should adapt based on user preferences and behaviours.

Monetise Like Amazon: Personalisation at Scale

Retail media success is about more than just selling ad space—it’s about selling the right ads, to the right people, at the right time. Amazon excels because its retail media platform doesn’t feel like advertising—it feels like shopping.

To compete, retailers must prioritise:

– AI-driven personalisation: Machine learning can predict purchase intent, dynamically adjusting offers, recommendations, and content in real time.

– First-party data enrichment: With third-party cookies on the decline, harnessing customer data for better audience segmentation is crucial.

– Seamless ad integration: Ads should enhance the shopping experience, not disrupt it. Amazon’s ads feel natural because they are relevant and unobtrusive.

Winning the Retail Media Race

Amazon has set the gold standard in retail media, but the game is far from over. Those who invest in optimisation, personalisation, and AI-driven execution can carve out their own dominant position.

Retail media is a $100 billion+ opportunity, and it’s only just getting started. Retailers who want to take on Amazon must stop thinking like traditional advertisers and start thinking like customer-first digital ecosystems.

The key to winning? Optimise relentlessly, personalise intelligently, and monetise seamlessly.

Written by Sarah Trigwell

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