The Rise of Retail Media and Its Intersection With Programmatic

The Quiet Revolution in Advertising

When most marketers talk about “the future of advertising,” they think of AI, automation, or connected TV. But a quieter, equally transformative revolution is happening on retail platforms — the rise of retail media.

Once a simple placement opportunity for banner ads on e-commerce sites, retail media has evolved into a full-fledged ecosystem where brands can target consumers at the exact point of purchase using first-party data, predictive analytics, and programmatic infrastructure.

According to eMarketer 2025, global retail media ad spend is projected to exceed $150 billion USD, making it the third-largest advertising channel after search and social.

The secret behind its growth? Retail media has fused with programmatic advertising, blending the precision of digital targeting with the conversion power of commerce environments.

And agencies like Buo Tech are helping brands navigate this new frontier — where every impression can be linked to a sale, and every sale can inform smarter bidding.

What Is Retail Media?

Retail media refers to advertising within a retailer’s owned ecosystem — websites, apps, marketplaces, and even physical stores. Think Amazon Sponsored Products, Walmart Connect, or Mercado Ads on Mercado Libre.

These platforms leverage first-party shopper data — purchase history, search behavior, product views — to deliver hyper-relevant ads that reach consumers when they’re ready to buy.

The model is straightforward:

1. Retailers monetize their digital properties.

2. Brands access premium audiences close to purchase.

3. Consumers see ads that match their intent.

It’s the ultimate closed-loop system.

Retail Media vs. Programmatic

Traditional programmatic operates across the open web — through DSPs, SSPs, and ad exchanges. Retail media, on the other hand, sits in “walled gardens” of data.

But the two are converging fast. Retailers now allow programmatic access through APIs and integrations, giving brands the ability to buy retail media inventory using DSPs just like display or CTV — but with deeper data insights.

Why Retail Media Is Exploding

Three forces are driving retail media’s meteoric rise in 2025:

1. The Death of Third-Party Cookies With privacy changes and cookie deprecation, marketers need first-party data to maintain targeting precision. Retailers are the new gatekeepers of verified, permissioned consumer data.

2. The Power of Closed-Loop Measurement Every retail ad can be tied directly to sales outcomes — something display, social, or even search struggle to prove definitively.

3. The Commerce Everywhere Era Consumers buy from marketplaces, social apps, and even connected TVs. Retail media is expanding to these ecosystems — merging with programmatic buying to connect every touchpoint.

According to McKinsey’s Retail Media 2024 Report, advertisers see an average 11x ROI on retail media compared to traditional digital channels.

How Programmatic Powers Retail Media

Programmatic Access and APIs

The new generation of retail DSP integrations allows programmatic campaigns to run directly within retailer ecosystems. Amazon DSP, The Trade Desk, and Criteo are leading examples, while Mercado Libre and Walmart Connect LATAM are developing similar programmatic frameworks.

Programmatic integration brings:

• Automated bidding for sponsored placements.

• Audience segmentation using retailer’s first-party data.

• Omnichannel attribution that connects retail performance to broader campaigns.

Predictive Targeting

By combining retail data (e.g., “users who viewed running shoes”) with external programmatic signals (e.g., weather, time, or device), advertisers can predict purchase intent and serve timely creative.

For example:

• On hot days, show beverage ads in the Mercado Libre app.

• During back-to-school season, trigger office supply promotions.

This contextual + behavioral fusion gives retail media its power.

Dynamic Creative Optimization (DCO)

Programmatic retail ads can now display real-time inventory, price drops, or product ratings — updated automatically via API feeds.

Retailers like Carrefour, Walmart, and Cencosud in Latin America use this to synchronize in-app promotions with external programmatic placements — so what consumers see on a digital billboard or YouTube ad matches what’s in stock on the retail site.

Case Studies — Retail Media in Action

Amazon DSP — Closing the Loop

Amazon’s DSP lets advertisers reach audiences both on and off Amazon, using purchase data to retarget consumers with display or video ads.

For instance, a skincare brand can reach users who searched for “serum” on Amazon, then show them a video ad on Twitch or IMDb TV.

• Result: +22% lift in brand recall and +14% higher sales conversion. (Amazon Ads 2024 Insights).

Walmart Connect Mexico — Precision at Scale

Walmart Connect Mexico integrated AI-based segmentation in 2024 to target in-store and online audiences simultaneously. Their results:

• 17% higher ROAS for omnichannel campaigns.

• 2x improvement in basket size among retargeted users. (IAB Mexico).

Mercado Libre LATAM — Retail Media Goes Programmatic

Mercado Libre’s “Mercado Ads” platform introduced programmatic access through The Trade Desk in 2025. Advertisers can now buy inventory across Mercado properties and external DSPs, unifying spend.

Brands using this system reported:

• 38% higher ROAS.

• 23% reduction in wasted impressions. (Statista LATAM Retail Data 2025).

The Role of Buo Tech in Retail + Programmatic Integration

At Buo Tech, we help brands bridge the gap between retail walled gardens and open-web programmatic environments.

Data Fusion Layer

Our proprietary data architecture allows us to blend:

• Retailer-provided first-party data.

• Programmatic audience segments.

• Contextual and geographic data.

The result is a unified audience graph that delivers precision without privacy risk.

AI Optimization Engine

Buo’s AI models use reinforcement learning to optimize bids, placements, and creatives across both retail and non-retail channels.

For example, if conversions spike on Walmart Connect, the engine dynamically reallocates budget from display to retail placements — in real time.

Creative Consistency

We build creative systems that adapt seamlessly across ecosystems — ensuring that your ad seen on Mercado Libre matches tone, design, and offer with your CTV or social placements.

Attribution + Measurement

Using clean room environments, Buo analyzes campaign data safely within retailer frameworks to attribute both direct and halo effects — understanding not just what sold, but why.

The Future of Retail Media — AI, Automation, and Omnichannel

1. Autonomous Campaign Management

AI agents will soon manage retail media campaigns end-to-end — from creative testing to budget shifting. Marketers will simply set objectives (“maximize ROAS at 5x”) and monitor results.

2. Retail + CTV + DOOH Integration

Retail networks will extend into connected TV and digital out-of-home. Imagine a user seeing a Walmart ad on a CTV show, then a DOOH screen promoting the same product nearby — powered by the same audience data.

Buo is already preparing for this cross-environment orchestration — one audience, multiple surfaces, continuous storytelling.

3. Generative Creative and Dynamic Merchandising

AI-generated creative will soon personalize not just messaging but products featured, adapting automatically to what users have viewed or purchased before.

4. Retail Media in LATAM — The Untapped Goldmine

While the U.S. dominates retail media spend, Latin America’s ecosystem is catching up fast. Mercado Libre, Walmart, Cencosud, and Rappi are building scalable, data-rich networks that mirror the success of Amazon and Target in the North.

By 2027, regional ad spend in retail media is expected to exceed $4.5 billion, per Statista.

Challenges — Privacy, Data Silos, and Measurement Gaps

Despite the promise, retail media faces structural hurdles:

• Data Silos: Each retailer keeps its own walled garden; cross-platform attribution is limited.

• Privacy Regulation: Countries like Brazil (LGPD) and Mexico (LFPDPPP) restrict data sharing.

• Measurement Standards: There’s still no universal metric to compare Amazon, Walmart, and Mercado Libre performance.

Buo’s Approach

1. Build data alliances and clean rooms to ensure compliant insights.

2. Use privacy-safe identity graphs for audience expansion.

3. Standardize reporting frameworks across retail networks.

By aligning with IAB and ANA global standards, Buo ensures accountability, comparability, and transparency in every campaign.

The New Center of Gravity in Advertising

The rise of retail media marks a shift in the entire digital ecosystem. Brands no longer just “buy impressions”; they buy commerce moments — measurable, attributable, and data-rich.

As retail platforms merge with programmatic technologies, the traditional boundaries between awareness and conversion blur. Advertising becomes an extension of the shopping experience itself.

Buo Tech stands at the intersection of these worlds — helping brands integrate retail media with programmatic sophistication, creative intelligence, and full-funnel strategy.

Because in the future of advertising, every impression can be a transaction.