Today, I'm sharing a portion of a sharp and timely analysis from Deborah Aho Williamson, one of the most trusted voices in digital advertising and platform strategy, on why advertising inside AI-powered platforms is becoming unavoidable for certain industries. The piece is titled Should Your Industry Advertise in AI Media in 2026? from Deborah's wonderful newsletter The AI Ad Economy.

Deborah shines a light on ads inside LLMs becoming a front-burner priority, and why retailers are uniquely positioned to benefit from testing AI media now. From consumer AI usage data to search ad spend trends and lower-funnel alignment, what signals matter most, and where advertisers can realistically start experimenting today, this episode runs the run the gamut of important questions sweeping through retail media. 

This episode is sponsored by Mirakl Ads

Timeline

[00:00] Why I’m sharing a guest post, and why this one matters so much
[01:07] Deborah Aho Williamson’s AI ad research and the industries that should act now
[02:47] The three factors that determine whether your industry is ready for AI media
[04:17] Why retail stands out: search ad spend, AI usage, and category readiness
[05:26] Key consumer behaviors: how shoppers use AI in retail purchase decisions
[07:15] The big takeaway, and why Microsoft Copilot is the easiest entry point for LLM ads

Links & Resources

• Read Deborah's article in full - Should Your Industry Advertise in AI Media in 2026?
• Subscribe to The AI Ads Economy on Substack or on LinkedIn
• Follow Debra Aho Williamson on LinkedIn
• Read my related articles:
  • Ads in AI Are Older Than You Think
  • ChatGPT Ads Are Here. I'm Not Panicking.
  • The 3 Ways Agentic Commerce Could Destroy Retail Media
• Join me and Jordan Witmer from Salt XC at 11am Thursday Feb 5 (that's today!) for a LinkedIn Live on The Store As Media: Retail Media That's Scalable, Memorable & Worth Buying. We'll be answering questions LIVE -- join us!
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn

I start this episode with a story from a breakfast buffet in Taipei that was so over-the-top indulgent it felt surreal. Sushi, dim sum, pastries worthy of Paris. But by day four? I suddenly became picky, critical, and began to calculate value. And in my opinion, this is the mode of retail media today.

In this episode I unpack how hedonic adaptation explains the shift we’re seeing in retail media investment heading into 2026. The early excitement is gone, budgets are tightening, and brands are asking harder questions about performance, transparency, and whether the premium is actually justified. Drawing on fresh data from the Path to Purchase Institute, I break down what’s changed, where skepticism is growing, and what both brands and retail media networks need to do next if they want to avoid getting stuck in the middle.

This episode is sponsored by Mirakl Ads

Timeline

[00:00] – A luxury breakfast buffet in Taipei and the moment it became a metaphor for retail media

[01:08] – Hedonic adaptation and why retail media’s novelty has officially worn off

[02:16] – New 2026 data shows slowing budget growth and rising skepticism among brands

[03:30] – The Retail Media Doom Loop and how reallocating trade dollars hit its limit

[04:06] – The confidence gap: why more brands now see retail media as a money grab

[06:27] – Measurement, attribution, and the networks proving accountability is possible

[08:12] – The real takeaway for brands and RMNs as retail media enters its value era

Links & Resources

• The full 2026 P2PI Retail Media Ratings study is now available to Path to Purchase Institute members.
• Read my related articles:
  • The Retail Media Doom Loop
  • The Retail Media Performance Gap Is Even Wider Than We Thought
  • Inside Best Buy’s first ad showcase as it makes a major play for retail media budgets (The Drum)
  • Dollar General’s new media chief targets rural America’s ‘last mile’ ad opp (The Drum)
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn

The conventional wisdom says ads will ruin AI assistants i.e. the moment ChatGPT or Gemini turns commercial, trust disappears. But I’m not convinced.

Today I'm sharing part of a recent conversation I had with Mike Shields from Next in Media, where I argued that ads inside LLMs could actually be better than anything we’ve seen before.

But here’s the catch: if AI-powered ads really do work, they could create a serious, under-discussed problem for retail media. We dig into why LLMs may become the most context-rich ad platform ever, how that changes shopper intent data, and what it means for retailers who’ve been betting big on offsite media as their next growth engine.

This episode is sponsored by Mirakl Ads

Timeline

[00:00] Why I’m skeptical of the idea that ads will automatically erode trust in AI assistants

[01:10] What AI ads could look like, and why they won’t resemble traditional sponsored product units

[02:15] Multimodal, hyper-relevant ads: when advertising actually feels helpful

[03:15] The unique level of trust users place in LLMs (and why that matters for monetization)

[05:15] The uncomfortable question: what happens to offsite retail media if LLMs own the intent data?

[08:30] Why LLMs might build offsite ad businesses, and how that could undercut retailers

Links & Resources

• Watch my full appearance on Next In Media with Mike Shields 
• Subscribe to Next In Media
• Follow Mike Shields on LinkedIn
• Read my related articles:
  • The 3 Ways Agentic Commerce Could Destroy Retail Media
  • Amazon is playing agentic commerce chicken. Other retailers should not.
  • At NRF, Retailers Say "Bring On All The Bots"
• LinkedIn Live on Thursday Feb 5 at 11am ET with Jordan Witmer (SALT): The Store As Media: Retail Media That's Scalable, Memorable & Worth Buying. Click here to join us!
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn

Today I’m breaking down why Costco’s decision to publicly reveal its retail media tech stack sent shockwaves through NRF, and why it matters so much for advertisers, merchants, and retail media leaders alike. Retail media is one of the highest-margin revenue streams retailers have, but what happens when the pursuit of ad dollars starts to undermine the core business?

In this recap of my recent article for The Drum, I walk through the philosophy of Mark Williamson, head of Costco’s RMN, and why sales velocity, member experience, and merchandising discipline come before media profits. This episode isn’t about copying Costco’s vendor list — it’s about understanding how transparency, trust, and infrastructure can fundamentally reshape advertiser relationships and the future of retail media networks.

This episode is sponsored by Mirakl Ads

Timeline

[00:00] Why my Costco article became one of The Drum’s most-read pieces, and what that says about retail media curiosity

[01:45] The NRF moment that caught everyone’s attention: Costco reveals its full retail media tech stack

[02:45] The danger of chasing high-margin ad revenue at the expense of merchandising outcomes

[03:31] Costco’s hierarchy explained: sales velocity, member experience, and renewals come first

[05:33] The four-layer retail media tech stack powering Costco’s strategy

[07:39] Why transparency builds advertiser trust, and what other retailers should really learn from Costco

Links & Resources

• Costco just revealed its entire retail media tech stack. Why? (The Drum)
• Read my related articles:
  • My Notes From an Interview with Costco's RMN leader, Mark Williamson
  • Ace Hardware's RedVest Media: Notes From My Interview With Molly Hjelm
• LinkedIn Live on Thursday Feb 5 at 11am ET with Jordan Witmer (SALT): The Store As Media: Retail Media That's Scalable, Memorable & Worth Buying. Click here to join us!
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn

Instacart’s advertising business is officially in its third act, and it’s the most ambitious one yet. In this recap of my recent article for The Drum, I break down how Ali Miller, GM of Ads at Instacart, is thinking about the company’s evolution from sponsored products to something much bigger: becoming the infrastructure that powers an entire retail media ecosystem.

I walk through Instacart’s three-act playbook, why its early bets on incrementality and self-serve set it apart, and how platforms like Carrot Ads are quietly reshaping how brands and retailers think about scale, measurement, and simplicity. If you’re feeling the weight of a fragmented retail media landscape, this episode offers a clear lens into where things are heading, and why Instacart may be further ahead than many realize.

This episode is sponsored by Mirakl Ads

Timeline

[00:00] – Why I see Instacart’s ads evolution as a three-act play

[01:56] – How Instacart prioritized incrementality when others focused on attribution

[02:38] – Act Two: expanding into display, video, and objective-based buying

[03:21] – Act Three begins: Carrot Ads and the infrastructure play

[04:04] – “Buy once, activate everywhere”: the brand value proposition

[05:28] – What retailers gain by tapping into Instacart’s national advertiser demand

[07:15] – Fragmentation, slowing growth, and why simplification is the next frontier

Links & Resources

• Instacart’s new ad chief on revving up for a third act, my full article on The Drum
• Follow Ali Miller on LinkedIn
• Read my related articles:
  • Best Buy Wants To Become An Ad Platform, Not Just Another RMN
  • Amazon bets on 'crystal box' transparency in ads product upgrade (The Drum)
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn

There’s a conversation that comes up constantly in retail media. Challenger brands look at big legacy CPGs and think, “If only we had that budget and analytics muscle, this would be easy.” Meanwhile, those same enterprise brands look at challengers and think, “If only we could move that fast.” In this episode, I unpack why both sides are right, and why they’re also missing the bigger picture.

I’m joined by Jordan Witmer, who has a client-side background but now leads retail media strategy at the agency SALT. We dig into why retail media strategy is not one-size-fits-all, why sponsored products can be the smartest dollar a challenger brand can spend, and how to recognize the tipping point when that math flips for large incumbents. If you’re trying to decide when to stay bottom-of-funnel versus when to shift into brand building, this conversation will help you understand your growth strategy more clearly.

This episode is sponsored by Mirakl Ads

Timeline

[00:00] – The “grass is greener” problem between challenger brands and legacy CPGs

[01:20] – Why retail media playbooks must change based on brand size and stage

[03:29] – Sponsored products as “easy money”, and why challengers shouldn’t apologize for it

[04:13] – The hidden advantage challengers have with flexible, high-ROI media budgets

[05:39] – When the value equation flips for large, everywhere-available brands

[07:29] – Defining the tipping point between harvesting demand and building demand

Links & Resources

• Listen to the full replay of my 50 minute conversation with Jordan
• Learn more about SALT
• Follow Jordan Witmer on LinkedIn
• Read my related articles:
  • Amazon On Sponsored Product Ads: 'Too Much Is Never Enough'
  • It’s Time To End Retail Media “Versus” Organic Search
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn

Amazon built its empire by disrupting everyone else. But what happens when the disruptor starts looking… defensive. As Walmart, Target, Shopify, Wayfair, and others plug into Google’s universal commerce protocols, AI agents are suddenly able to compare and transact across retailers. Meanwhile, Amazon is still operating inside its walled garden — and that raises some big questions.

Today I bring you a snippet of a conversation I had on the Ecommerce Braintrust Podcast with Julie Spear and Jordan Ripley from Acadia. We dug into Amazon’s AI strategy, the backlash to its 'Buy for Me' agent, and what consumer behavior is telling us about where online shopping is really headed. Finally, I analyze comments from Amazon CEO Andy Jassy and read between the lines on whether Amazon will ultimately have to play ball with third-party AI (and what it might cost them if they wait too long).

This episode is sponsored by Mirakl Ads

Timeline

[00:00] Amazon’s role reversal: from disruptor to defender in the age of AI commerce

[01:15] Rufus vs. universal AI agents — is “best in class” enough inside a walled garden?

[02:15] Backlash against Amazon’s “Buy for Me” agent and why small brands are pushing back

[04:28] The Salesforce stat that should worry Amazon: shoppers are already using LLMs in-store

[06:17] The future “handshake” between offsite AI agents and onsite retail experiences

[08:15] Andy Jassy’s comments on third-party AI and what he quietly concedes

Links & Resources

• Listen to my appearance on the Ecommerce Braintrust podcast in full
• Subscribe to the Ecommerce Braintrust
• Read my related articles:
  • Amazon is playing agentic commerce chicken. Other retailers should not.
  • At NRF, Retailers Say "Bring On All The Bots"
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn

Today I dive into the 'retail media doom loop' and share seven actionable ways retailers can break free. If you’ve ever wondered why retail media networks stall after initial wins, or how AI agents and agentic commerce are shaking up the industry, this episode is for you. I highlight opportunities ranging from in-store experiences to long-tail marketplace activation, loyalty programs, and even cross-retailer collaboration.

Retail media doesn’t have to be trapped in a cycle of margin extraction. I share real-world examples from retailers like Sam’s Club, Lowe’s, Macy’s, and innovative ad tech solution providers that are helping the industry rethink what’s possible.

This episode is sponsored by Mirakl Ads

Timeline

[00:00] – Introducing the retail media doom loop and why most networks stall after early wins.

[02:06] – Double down on in-store and experiential media that AI agents can’t bypass.

[03:00] – Activate long-tail advertisers and marketplace sellers for real growth.

[04:30] – Stop trying to out-Amazon Amazon and leverage your unique strengths.

[06:09] – Transparency and access — make it easy for media buyers to invest.

[08:00] – Create ad formats that drive purchases and harness loyalty programs.

[09:41] – Explore cross-retailer collaboration to unlock scale and efficiency.

Links & Resources

• Read my related articles:
  • The Retail Media Doom Loop
  • Why OpenAI’s ad announcement should worry retail media networks (The Drum)
  • Sam's Club Cracked the Code on In-Store Retail Media—Here's How They Did It
  • The Case for the ‘Long Tail’ of Retail Media Networks
  • Retailers Are Becoming Retailers Again: Building Better Partnerships
  • Costco just revealed its entire retail media tech stack. Why? (The Drum)
  • Why RMNs Keep Their Tech Stacks Secret
  • DSPs Wanted: The Retail Media Revolution 96% of Advertisers Crave
  • Beyond banner ads: how retailers are monetizing the moments that actually matter (The Drum)
  • How Loyalty Programs Give Retailers the Edge in an AI Shopping Future
  • Meet The First Retail Media Federations & Consortiums
  • While We Debate What's 'Really' Agentic, Retail Media's Foundation Is Already Shifting
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn

For the last decade, retailers have done everything they could to keep bots off their websites. But when I was at NRF earlier this month, I heard something very different from the biggest names in retail: bring on all the bots. In this episode, a recap of my recent article for The Drum, I break down why that shift is happening now (and what it actually looks like in practice).

At NRF I found  a wide spectrum of approaches, from full-scale deployments to cautious experimentation, but also a surprising point of alignment. Listen to learn how six major retailers are thinking about AI shopping agents, what they’re building, and where they’re drawing the line when it comes to control, trust, and ownership of the customer relationship.

This episode is sponsored by Mirakl Ads

Timeline

[00:00] Why retailers who once banned bots are now actively welcoming AI shopping agents

[01:28] Kroger’s fully deployed AI assistants for meal planning, budgeting, and one-click shopping

[02:40] How Lowe’s is using Google’s Business Agent to let customers shop directly from search

[03:59] Ulta Beauty’s marketplace strategy as the foundation for future agentic commerce

[06:01] Home Depot’s problem-first approach, and why merchant of record still matters

[07:26] Wayfair and Urban Outfitters on conversational/multimodal shopping becoming mainstream

Links & Resources

• At NRF, retailers say ‘bring on all the bots’, my full article on The Drum
• Read my related articles:
  • The Retail Media Conversations At NRF That Didn't Make the Stage
  • Amazon is playing agentic commerce chicken. Other retailers should not.
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn

The retail media conversation is dominated by a handful of giants. But today, I’m analyzing a recent episode of one of my favorite podcasts (Beyond The Shelf hosted Dave Feinelib), and making the case that we’re missing a massive opportunity by ignoring the long tail. If you’re a brand focused only on Amazon, Walmart, or Target, what happens to the shoppers you’re not reaching, especially in regional and mid-market grocery?

In this episode, I dig into insights shared on a recent episode of Beyond The Shelf from Dave Glaza of DIGITS, who has a rare dual perspective: helping brands activate retail media while also operating networks for regional grocers. Dave unpacks why regional grocery is one of the biggest remaining white spaces in retail media, the real reason brands cap the number of RMNs they’ll work with, and what might actually change as budgets tighten and growth gets harder to find.

This episode is sponsored by Mirakl Ads

Timeline

[00:00] Why retail media’s obsession with scale leaves regional shoppers behind

[01:09] Dave Glaza explains the “white space” opportunity in regional grocery

[02:23] The real infrastructure problem behind managing 10+ retail media networks

[03:08] Are brands walking away from half their buyers by ignoring regionals?

[04:19] Why being tech-agnostic matters in a fragmented retail ecosystem

[06:03] The shift from ROAS to “new-to-brand” and category growth metrics

Links & Resources

• Listen to the full Dave Glaza episode of the Beyond The Shelf podcast hosted Dave Feinelib
• Subscribe to Beyond The Shelf
• Dave Glaza runs the agency DIGITS
• Follow Dave Glaza on LinkedIn
• Follow David Feinleib on LinkedIn
• Read my related articles:
  • What It Actually Takes to Build a Retail Media Federation
  • Meet The First Retail Media Federations & Consortiums
  • The Retail Media Doom Loop
• Join me and Jordan Witmer from Salt XC at 11am Thursday Jan 22 (today!) for a LinkedIn Live on how big brands and small brands MUST approach retail media differently. We'll be answering questions LIVE -- join us!
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn