[Marketing Week] Bob Koigi: Retail media’s next test

Global retail media spend is expected to grow 11.5% in 2027, but only 9.8% excluding Amazon, the slowest rate WARC has recorded

Retail media is moving from rapid expansion into a more demanding phase of maturity. Global investment is forecast to surpass $200 billion in 2026 and reach $223.4 billion in 2027, according to WARC Media. But growth is slowing, putting pressure on retail media networks (RMNs) to prove that bigger advertising revenues do not come at the expense of shopper experience or campaign effectiveness.

Global retail media spend is expected to grow 11.5% in 2027, but only 9.8% excluding Amazon, the slowest rate WARC has recorded. Concentration is another concern: Amazon captured 78% of US retail media spending in 2025, compared with Walmart’s 7.5%.

For brands, retail media is becoming indispensable, particularly in CPG, where it is forecast to account for more than half of advertising investment in food and alcoholic drinks in 2027.

Yet the sector faces a fundamental tension. Some major retail platforms serve more than 20 ads per page, risking clutter and consumer fatigue. Meanwhile, Ipsos research found retailer-platform ads generated 47% lower memory encoding than offsite advertising.

The next phase will therefore be less about inventory and more about quality, creativity and effectiveness. RMNs that combine relevant advertising, stronger measurement, AI and seamless physical-digital experiences will be best positioned to turn scale into sustainable growth.

Campaigns of the week

Coca-Cola Zero Sugar has partnered with Central Cee on The Team, an original track created for the brand’s Premier League campaign Taste Every Second.

Deutsche Telekom has launched NOT A PASSENGER, a Gen Z campaign encouraging young people to take greater control of their identity and choices.

Tesco is putting the everyday actions of its colleagues at the centre of a campaign from BBH Dublin, giving its Every Little Helps tagline a people-focused role across Ireland.

Agencies and accounts

Tombras has been appointed creative agency of record for Dollar Tree following a competitive review involving several global agencies.

BMF has been appointed lead creative agency for Superloop following a competitive pitch, as the Australian challenger telecommunications company enters its next phase of growth.

Full Punch has been selected by Seva Canada as its strategic and creative partner, with responsibility for developing the organisation’s brand strategy and identity.

Partnerships and acquistions

Paramount Skydance Corporation has secured the regulatory clearances required under its merger agreement to complete its proposed acquisition of Warner Bros. Discovery, following an eight-month review across 68 countries.

Publicis Sports has partnered with Kansas City Chiefs player Travis Kelce to launch TEKTA. The service is designed to help brands identify, activate and measure partnerships with collegiate athletes and universities.

Unilever and Galaxy Surfactants are entering a new phase of their 45-year partnership after signing a Partnership Growth Charter focused on surfactant innovation, supply resilience and competitiveness.

Other major news of the week

Eurobest has opened entries for its 2026 Awards, with changes to Creative Data, AI Craft and integrity requirements shaping the 39th edition of the European creative competition.

Apple is changing its business terms for apps distributed in the European Union following discussions with the European Commission.

Nielsen is updating its TV currency methodology ahead of the broadcast season, introducing several changes designed to improve the accuracy of its Big Data + Panel measurement.

Bob Koigi is the editor-in-chief of Marketing Report.One

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