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Channel
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Retail media benchmarks
Amazon, Walmart Connect, Target Roundel, Instacart, Kroger Precision Marketing, plus 30+ smaller retailer networks. The fastest-growing channel by share.
Share of digital ad spend: ~16% of US digital ad spend (2026)
Channel snapshot
Amazon dominates (~80% of retail-media spend). CPCs $0.40–4.50 depending on category competitiveness. Avg ROAS 3.2–5.5x.
How to operate this channel
Operator playbook
- TACoS (total ACoS), not ACoS, is the real metric.
- Defend branded keywords aggressively — competitors will conquesting if you don't.
- Use AMC (Amazon Marketing Cloud) for incrementality and path analysis.
- Optimize listings (A+ Content, images, reviews) before scaling spend — CVR is gated.
- Treat Prime Video Ads as upper-funnel for Amazon ecosystem.
Platforms in this channel
Amazon Sponsored AdsPlatform deep-diveWalmart ConnectPlatform deep-diveTarget RoundelPlatform deep-diveInstacart AdsPlatform deep-dive
Want to model your spend in this channel? Use the CPM calculator, ROAS calculator, and budget allocator to plan allocation.