Retail Media's Explosive Growth: Is It Overtaking TV by 2026?

Retail Media's Meteoric Rise: Surpassing TV Ad Spend in 2026?

Retail media ad investment is on a trajectory to eclipse combined linear and streaming TV spend by 2026. This isn't just a blip; it's a seismic shift in the advertising landscape. Research from WARC Media predicts this burgeoning channel will see investment surpassing $200 billion (£152 billion) by 2027. For context, ad spend on retail media is estimated to hit $174.9 billion (£133 billion) this year, marking a significant 13.7% year-on-year increase. Projections show a further 12.4% jump in 2026, bringing the total to a staggering $196.7 billion (£149.5 billion).

While this growth is undeniably substantial, it's crucial to note that the rate of growth for retail media ad spend is expected to slightly decelerate in the coming years. However, the sheer volume and projected dominance clearly indicate its ascent to a top-tier advertising channel. Why is this happening, and what does it mean for brands and marketers looking to capture consumer attention?

The Allure of First-Party Data and Shopper Intent

One of the primary drivers behind retail media's impressive growth is its unparalleled access to valuable first-party data. Retailers, by nature, collect a wealth of information about their customers' purchasing habits, preferences, and intent. This data allows for incredibly precise targeting, moving beyond basic demographic segmentation to understanding actual purchase behavior. When a consumer is browsing a retailer's site or app, especially with the intent to buy, they are highly valuable.

Think about it: ads served on a grocery store's platform to someone actively searching for