Retailers + Media Companies: Collision Course or Convergence?

Intensifying Competition for Ad Dollars Need Not Be a Zero-Sum Game

Amazon and Walmart now both rank among the top 10 digital ad sellers. Consider the rest of the digital advertising industry officially on notice.

While the leading retail media networks continue rising at a rapid clip—Amazon and Walmart both jumped 24% in the most recent quarter—the rest of digital advertising will grow at about half that rate.

With many media companies facing headwinds—from the secular decline of linear TV and print to deprioritization from Google and Meta algorithms—they’re looking to diversify. And increasingly that means parlaying the value of their brands into new commerce revenue streams.

In a zero-sum world, the central question might be: can retailers become media companies faster than media companies can become retailers?

But digital advertising isn’t zero-sum, and never has been. EMARKETER forecasts that digital ad spending will jump by $100 billion over the next four years. Which companies disproportionately benefit in this future will depend on their ability to navigate this media-commerce convergence.