.png)
eading trends in the retail landscape in recent years would indeed be that of emerging retail media networks across strategic partnerships with entertainment majors. A new wave of collaborations between retailers and streaming services signals that this is indeed one of the transformative shifts, that of turning customer loyalty programs into networks with advertisements and extending reach beyond the traditional realms of retailing. As the largest retailers in the market- Kroger, Walmart and Instacart-for example, begin to deploy streaming options such as Disney+, Paramount+, and Peacock, the retail media landscape is about to have exponential growth.
This article will do a deep dive into how these partnerships are changing, what it means to brand advertisers, and the battles going on for national brand budgets. Here, we look at Amazon's playbook, the underlying rationale behind the fusion of entertainment with retail media, and what the future could look like for these networks as they begin to scale.
Retail media networks, therefore, unlock customer data, website traffic, and loyalty programs as meaningful new revenue streams for advertisers. Rich sources of consumer data through purchase history, online browsing behavior, or loyalty programs available in the retailer's arms become leverage for hyper-targeted campaigns. The retail media networks are now an evolution in retail strategy and distance retailers further from simple transaction-based business models and engage with customers through a more holistic relationship that capitalizes on consumer preferences.
Recent streaming service partnerships add another layer of potential opportunity for these networks. This is streamed bundles, rather than loyalty rewards, as ad-supported entertainment choices that expand the network's footprint and maximize the retailer's media presence. In 2022, Walmart upped the ante with the launch of Paramount+ as part of its Walmart+ membership. Instacart followed up with Peacock as a loyalty perk in late 2023. Now, Kroger is joining the party with Disney+ options as part of its loyalty program first-of-its-kind convergence of retail and entertainment.
With add-supported streaming services, retailers will, therefore , be able to widen their media networks to reach customers with entertaining experiences. Such a change is a win-win situation since boosting customer loyalty through valued entertainment perks would make retailers drive advertising revenues while capturing national brand budgets.
This is the beginning of a trend whereby streaming services will become part of loyalty programs, heralding a more fundamental approach: getting a larger share of ad dollars by integrating this entertainment time with consumers' lives. In traditional retail media, ad placements are typically contained within the retailer's website or even their physical space. With embedded retail media into these streaming platforms, brands are going beyond their owned and operated properties to reach into consumers' leisure time.
Most of the new streamers are ad-supported, thus allowing brands to reach new audiences and ensure extended engagement. Brands can be advertised not only when the consumers are shopping but even at home when they are relaxing—in a word, integrate retail media into everyday life organically.
These integrations also open up the potential for retailers to implement interactive ads, where viewers can engage with content directly—perhaps by adding a product to a wishlist or cart without leaving the streaming app. This interactivity fosters a more engaging experience and shortens the path from ad exposure to purchase, creating a more fluid shopping journey. As streaming platforms continue to evolve, the ability for brands to offer exclusive, limited-time deals or early access to products within streaming environments could add another layer of value, driving consumer loyalty and encouraging frequent engagement.
The alignment of retail media with ad-supported streaming platforms represents a powerful shift toward omnichannel brand experiences. By being part of a consumer's daily life in both active and passive moments, brands are better positioned to build lasting connections, drive higher conversion rates, and maximize ad spend by reaching audiences at moments when they’re most attentive. As this trend matures, it could reshape consumer expectations, setting a new standard for how we interact with brands—whether shopping, browsing, or unwinding in front of the TV.
Amazon has led retail media for years, developing a holistic ecosystem that combines retail, entertainment, and advertising. Perhaps most illustrative of the potential for entertainment as a strong ad revenue channel within a retail media network have been ads on Amazon Prime Video. Although ads on the service just launched, Amazon Prime Video is projected to reach $4 billion in ad revenue by 2025.
Seeing how well Amazon succeeded, companies are now running to copy the "Amazon flywheel," a synergistic approach that maximizes revenue by integrating multiple aspects of a consumer's life. Retailers recognize that getting attention is no longer a shopping moment; it is about engaging consumers during leisure, in between online purchases, and across multiple screens.
But it's a long way for companies looking to build their own flywheels. It is, after all, quite deeply integrated: Prime Video, e-commerce, and Alexa with streams working as interconnected pillars that fortify each other. Which is much more than strong partnerships with streaming services, solid infrastructure, content, and customer engagement strategy for Walmart, Kroger, and Instacart.
Amazon’s original series and exclusive offerings keep Prime Video viewers invested in the platform, driving more opportunities for ad engagement. Other retailers will need to consider how to create or support content that resonates with their target demographics, possibly through exclusive promotions, curated playlists, or interactive shopping experiences tied to the content.
Another key factor is cross-device consistency. Amazon’s flywheel operates across multiple touchpoints—from Fire TV and Echo devices to online shopping—providing a seamless experience that allows consumers to transition smoothly between entertainment, shopping, and voice-activated assistance. Retailers aiming to replicate this model will need to expand their reach across devices, which could mean developing or partnering with more tech solutions to ensure that consumers can interact with their brand anywhere and anytime.
Retailers will need to focus not only on building media networks but also on creating an interconnected digital ecosystem that turns occasional shoppers into deeply engaged brand loyalists. Those who can successfully bridge the gaps between retail, entertainment, and everyday life will stand the best chance of competing with Amazon’s flywheel model and capturing a larger share of consumer attention—and ad dollars—in an increasingly crowded marketplace.
Retail media networks, empowered by strategic streaming partnerships, are emerging as essential platforms for national brands that are increasingly frustrated with the limitations of traditional advertising channels. As consumers migrate away from cable TV and print to digital streaming and social media, brands have had to rethink their strategies to connect with audiences at scale. Retail media partnerships provide an innovative solution: they allow brands to reach consumers not only during their shopping journeys but also in entertainment moments, where audiences are more engaged and receptive. This hybrid advertising model can support a more cohesive and targeted approach, seamlessly blending brand messaging across both retail and entertainment channels.
The integration of ad-supported streaming options within retail networks also gives brands the opportunity to enhance customer engagement in unique ways. Instead of simply presenting a one-off ad, brands can now create multi-touchpoint campaigns that drive customers from awareness to purchase through a connected journey. For instance, a consumer watching an ad for a snack brand on Disney+ through Kroger’s network could later receive an in-app coupon in Kroger’s app, creating a seamless follow-up that encourages trial or repeat purchase. This kind of continuity not only builds brand loyalty but also provides brands with valuable data on campaign effectiveness and customer preferences, which can be used to refine future marketing efforts.
Additionally, these partnerships allow retailers to act as full-service advertising networks, capturing budgets traditionally reserved for standalone digital or social media campaigns. By positioning themselves as comprehensive ad platforms, retailers can leverage their deep insights into customer purchasing habits, loyalty data, and browsing patterns, providing brands with highly targeted advertising capabilities that traditional media simply cannot match. With $100 billion projected to flow into retail media over the coming years, retailers are in a prime position to compete for—and potentially dominate—brand advertising budgets.
Moreover, as retail media networks grow in sophistication, they’re expected to drive forward-looking innovations in the ad space. The integration of VR and AR technologies, for example, could bring immersive, interactive shopping experiences directly into consumers’ homes, allowing them to “try on” products or visualize them in their own spaces. Interactive ads that enable real-time product exploration, combined with the seamless ability to purchase, could redefine the traditional linear path to purchase, creating a fluid experience where entertainment, engagement, and transaction happen almost simultaneously.
Retail media partnerships with streaming services offer enormous potential but are fraught with unique challenges. To be fully integrated between retailers and streaming platforms, the technological infrastructure needs to be complex, data privacy issues need to be respected, and content alignment needs to be solid. In particular, the challenge here pertains to data privacy. Such partnerships need to take adequate care and ensure sufficient security in respect to customer information to create and maintain trust.
Conversely, advanced data analytics and AI-enabled targeting will make personalized advertising experiences across platforms easier for retailers. Better capabilities coming from retailers and streaming platforms can lead to ad content tailored to increasing precision, thus amplifying engagement and ROI for brands.
Another area is exclusive content that further reifies the retail brand. For example, Amazon has experimented with creating branded content that is produced and attached to Prime products, and others may seek out partnerships with streaming services to create original branded content that fits well with their brand. Exclusive content could be a powerful differentiator for retailers seeking an advantage in growing media clutter.
The next phase for retail media partnerships is likely to be marked by even greater innovation and the blurring of lines between shopping and entertainment. As retail media networks grow, they’ll not only drive innovations in shoppable content and VR-driven experiences but may also lead to entirely new ad formats, like interactive ads that adapt in real time based on viewer preferences or purchase history. Retailers and entertainment providers will likely experiment with augmented reality (AR), allowing consumers to visualize products in their homes or try out virtual styling as they watch shows.
Additionally, we may see a rise in exclusive, co-branded content produced in collaboration between retailers and entertainment platforms. This content could seamlessly integrate product placements or interactive shopping options, creating immersive, story-driven ways for consumers to engage with brands. As more retailers adopt these strategies, the competitive edge will come from how well they personalize and enhance the consumer experience across all touchpoints. Ultimately, retail media partnerships are set to redefine the boundaries of what’s possible in digital advertising, transforming it from passive viewing to active engagement in an evolving marketplace.
Retail media partnerships are transforming the future of both advertising and entertainment, moving well beyond traditional loyalty rewards to redefine how brands connect with consumers. As Kroger, Walmart, Instacart, and their brethren continue to grow their networks, the intersection of retail and entertainment is becoming a super-model for capturing consumer eyeballs and brand dollars.
Certainly, while Amazon has certainly set a high bar for innovation and growth in the space, it's hard to know now exactly where some of the other companies will shake out. But as these networks mature, new content, exclusive experiences, and integrations of ads could transform retail media from a supporting role into its rightful place at the center of our entertainment and shopping ecosystem.
The merger of retail and entertainment in a media landscape where attention is the most valuable currency heralds a big step forward. The next few years will display who can better utilize this model to create the new era of consumer engagement as retailers and entertainment providers compete for their share of the Amazon-inspired flywheel.
.svg){kind=icon}
.svg){kind=icon}
.png)
.png)
.svg)
.svg)
.svg)
.svg){kind=icon}
.svg){kind=icon}
.svg)
.svg)
.svg)
.png){kind=small}