Global retail media market to exceed $200 billion by 2027 as AI redefines growth

Retail media transitions from sponsored search to full-funnel strategies as brands demand deeper insights, AI integration, and greater efficiency from retail media networks worldwide

The global retail media market continues its upward trajectory, with advertising investment expected to cross $200 billion by 2027, according to a new report from WARC Media. While growth remains strong, the sector is undergoing rapid transformation as brands consolidate spending and retailers evolve into comprehensive, data-driven advertising platforms.

Retail media growth slows but broadens in scope

WARC Media forecasts that global investment in retail media networks (RMNs) will hit $174.9 billion in 2025, marking a 13.7% annual increase. This figure is projected to rise further to $196.7 billion in 2026, representing nearly 16% of total ad spend. However, growth rates are moderating—from an explosive 38.6% in 2021 to a projected 11.6% in 2027—signaling a maturing market.

James McDonald, Director of Data, Intelligence & Forecasting at WARC, noted that retail media is evolving from a “search-dominated” channel to a full-funnel opportunity integrating display, off-site, and video formats. He added that the future of retail media may hinge on how well the industry adopts agentic AI, which could reshape consumer interactions and online traffic patterns.

Recent trends indicate that retail media spending is set to surpass combined linear and connected TV investments by 2026. Technology and electronics brands remain top spenders, with ad investments expected to reach $32.2 billion globally next year. Meanwhile, quick-commerce platforms such as Instacart, DoorDash, and Delivery Hero are fueling regional expansion, particularly in Asia.

The rise of full-funnel commerce media

As retail media shifts beyond lower-funnel conversion tactics, more advertisers are exploring holistic strategies. Around 40% of agency executives now view retail media as a full-funnel solution, combining awareness and conversion goals. Growth is also being driven by channels such as connected TV (CTV), digital out-of-home (DOOH), and in-store digital displays that bridge physical and digital commerce experiences.

Amazon leads as agentic AI looms

Amazon remains the global leader in retail media, achieving 15% annual growth through partnerships with Roku, Disney, and Netflix, enabling access to over 300 million ad-supported users in the US.

Looking ahead, agentic AI commerce—AI-powered shopping assistants capable of making autonomous purchase decisions—could redefine retail interactions. Estimated at $136 billion in 2025, this emerging market could surge to $1.7 trillion by 2030, signaling a new era of personalized, AI-driven retail engagement.