How Retailers Became Ad Platforms

Today, major retailers, most notably Amazon, are creating and operating their own advertising platforms, and making millions from it. McKinsey estimates that by 2026, retail media will add $1.3 trillion to enterprise value in the United States alone, with profit margins between 50% and 70%. In this article, the authors introduce readers to the main types of retail media, discuss three strategic challenges they present, and provide guidance for managing those challenges effectively.