The emergence of AI-enabled shopping poses a significant challenge to traditional retail media, as highlighted by Kiri Masters in The Drum. Last week, OpenAI’s announcement of testing ads in ChatGPT responses indicates a shift in how high-margin onsite advertising revenue could be captured away from retailers. This evolution suggests that, while onsite advertising margins remain attractive, the introduction of AI opens new pathways for capturing consumer behavior data, threatening existing revenue models.
AI shopping assistants are quickly becoming essential tools for consumers, making the traditional e-commerce experience feel outdated and cumbersome. As the technology evolves, loyalty programs and in-store media formats may serve as crucial competitive advantages, preserving value for retailers. Far from signaling the death of retail media, these changes could drive innovation, prompting retailers to offer genuine value rather than relying on data exclusivity. Notably, early adapters of this shift could secure a significant advantage in a rapidly evolving commerce landscape.
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