How Retailers and Brands Are Advancing Retail Media in 2026: Building Measurable, Privacy-First Ecosystems

The retail media landscape in 2026 is experiencing an unprecedented transformation, driven by technological innovation, strategic integration, and a growing emphasis on privacy compliance. Leading retailers and brands are now forging a comprehensive, omnichannel ecosystem where physical store assets—such as ESLs, digital signage, in-store audio, and DOOH—are integral, measurable components of marketing strategies designed to maximize growth and marketplace performance.

Market Context: A Commerce Media Inflection Point

According to a recent report by McKinsey, the commerce media ecosystem is at a critical inflection point, with forecasts estimating that retail media networks (RMNs) will capture more than $100 billion in US advertising spend. This surge underscores the strategic importance of retail media as a dominant channel, surpassing traditional digital advertising in both scale and sophistication. The convergence of physical and digital assets, coupled with advanced data and AI capabilities, positions retail media as a full-funnel, measurable environment that sustains sustained growth and consumer engagement.

Retailer Expansion: New Entrants and Category-Specific RMNs

Retailers continue to invest heavily in expanding their retail media ecosystems, with notable entries and category-specific innovations:

• Wickes, a major player in the home improvement sector, has launched Wickes Connected Retail Media in partnership with Epsilon. This platform blends store and digital data to target home improvement shoppers more effectively, exemplifying how category-specific RMNs are deepening retailer investment in integrated targeting.

• Other traditional giants like Walmart, Target, and Costco are continuously refining their full-funnel platforms. For example, Walmart’s Walmart Connect leverages SKU-level data, inventory signals, and AI-driven personalization to support campaigns across both in-store and online channels. In 2025, Walmart generated $6.4 billion in ad revenue, confirming the effectiveness of its integrated approach.

• Meanwhile, Costco and Target are emphasizing measurement, attribution, and real-time optimization, further solidifying their roles as leaders in the retail media space.

Platform Competition Intensifies: Major Tech Giants Enter the Fray

The growing importance of retail media has attracted major digital platforms to develop tools aimed at capturing increased retail ad budgets:

• Meta (Facebook and Instagram) is building new tools to improve retail media campaigns, aiming to capture more of the retail ad spend. According to industry insiders, Meta is actively testing solutions designed to better integrate social media advertising with retail-specific KPIs, signaling its intent to compete directly with dedicated RMNs.

• Other platforms, such as The Trade Desk, Infillion, and LiveRamp, are emphasizing standardized, privacy-compliant measurement frameworks to ensure cross-channel attribution and ROI clarity. These efforts are crucial as retailers seek trustworthy, scalable solutions amid tightening consumer privacy regulations.

Physical Assets as Measurable Media Surfaces

The core theme of integrating physical store assets into measurable media ecosystems has gained even more traction:

• Digital Signage from vendors like SOLUM and conversational audio systems equipped with sensors now deliver context-aware, personalized messaging. These assets are seamlessly connected to data and AI platforms enabling real-time content updates and performance measurement.

• For example, ESLs support SKU-level performance measurement, allowing retailers to adjust promotions instantly based on shopper response. This turns the store environment into a dynamic, accountable media surface where every display and sound contributes to the broader marketing ecosystem.

• In-store personalization is enhanced through AI-driven signage and audio systems that analyze shopper behaviors—such as dwell time and proximity—to serve targeted messages. Pilot programs have reported over 30% increases in shopper engagement, illustrating the effectiveness of these innovations.

Seamless Digital-Physical Integration and New Ecosystem Partners

The integration of physical store assets with digital ecosystems is accelerating:

• Platforms like Kevel and Adobe facilitate campaign automation and cross-channel management, bridging in-store and online efforts.

• The advent of conversational AI solutions, such as Amazon Rufus, and AR experiences are transforming in-store discovery into immersive, measurable pathways to purchase.

• Partnerships with new ecosystem players are expanding:

  • Wickes’ collaboration with Epsilon exemplifies category-specific innovation.

  • Instacart continues to enable brands like Mighty Spark to target consumers during purchase moments, leveraging precise segmentation and real-time performance data.

  • Macy’s has integrated digital out-of-home (DOOH) and ESLs into its marketing mix, turning physical assets into accountable media surfaces. Its dynamic pricing and inventory-driven promotions are tracked with advanced performance measurement tools.

• Emerging tech enablers, including AI-generated imagery and agentic commerce platforms, are further deepening engagement and creating new, measurable pathways to purchase.

Privacy-First Measurement and Trust Building

Amid increasing privacy regulation, the industry is pivoting toward privacy-first measurement frameworks:

• SKU-level tracking combined with offline transaction data enhances cross-channel attribution without compromising consumer privacy.

• Collaborations among Bluecore, Dentsu, The Trade Desk, and LiveRamp are standardizing measurement protocols that foster trust and accountability at scale.

• Incrementality testing remains a strategic focus, as Felipe Abed emphasizes that “Commerce media needs proof of value”. These approaches demonstrate true contribution beyond last-touch attribution, building confidence among stakeholders.

Current Status and Future Outlook: A Fully Measurable, Privacy-Respecting Ecosystem

Retailers are increasingly leveraging physical store assets as measurable media surfaces, integrating AI, sensors, and data into privacy-compliant ecosystems. The expansion of category-specific RMNs, cross-platform tools, and partner ecosystems is transforming the retail media landscape into a scalable, accountable environment.

Emerging innovations such as immersive AR, AI-generated content, and agentic commerce platforms promise to enhance consumer engagement while maintaining strict privacy standards. Industry leaders are recognizing that building trust through transparent measurement frameworks and incrementality validation is essential for sustainable growth.

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In summary, 2026 marks a milestone where every physical asset—signage, sound, and digital screens—becomes a measurable, privacy-first marketing touchpoint. Retailers and brands that harness these technological and strategic advancements—by integrating data, AI, and trust—are poised to drive significant growth, deepen consumer relationships, and lead the evolving marketplace into a new era of full-funnel, accountable retail media.