Retail Media Growth Accelerates as Amazon, Walmart, and Criteo Report Strong Earnings

What's Happening?

The retail media sector is experiencing significant growth, as evidenced by the latest earnings reports from Amazon Advertising, Walmart Connect, and Criteo. Amazon's advertising revenue reached $15.7 billion in Q2 2025, marking a 22% year-on-year increase. Walmart's global ad revenue surged by 46%, with U.S. results up 31%. Criteo's retail media revenue rose 11%, adding 200 new brands. This growth outpaces the overall U.S. e-commerce sales, which grew by only 5.3% in the same period, indicating a strong demand for retail media services.

Why It's Important?

The acceleration in retail media growth highlights its increasing importance in the advertising landscape. Retail media is reshaping the economics of major retailers, contributing significantly to their profitability. As companies like Amazon and Walmart expand their digital advertising capabilities, they are creating new revenue streams that enhance their overall business models. This trend reflects a shift in advertising strategies, with brands investing more in retail media to maintain competitive intensity and reach broader audiences.

What's Next?

The future of retail media is likely to involve further integration with connected TV (CTV) and artificial intelligence (AI) technologies. Amazon is expanding its DSP capabilities, while Walmart is leveraging its digital P&L to drive profitability. Criteo is exploring AI-assisted commerce and partnerships to enhance shopper engagement. As these companies continue to innovate, the retail media sector is poised for continued growth, influencing advertising budgets and strategies across industries.

Beyond the Headlines

The growth of retail media underscores the evolving nature of digital advertising and its impact on traditional business models. As retailers integrate advanced technologies like AI and CTV, they are redefining consumer engagement and marketing effectiveness. This shift presents opportunities for brands to leverage data-driven insights and personalized advertising, potentially transforming the retail landscape and consumer experiences.