A couple of weeks ago, OpenAI quietly made one of the most important announcements for the retail media industry, and I don’t think we’re fully reckoning with what it means yet. In this recap of my January 20 article for The Drum, I break down why OpenAI testing ads inside ChatGPT responses isn’t just an interesting experiment, but a signal that the foundations of retail media are already shifting.

Let me be clear: this isn’t a doomsday episode! Retail media isn’t dead, but it does need to evolve. I walk through why AI-enabled shopping is fundamentally different from past hype cycles, how consumer trust and behavior are changing faster than we expect, and where retail media networks are most exposed — and most defensible — as AI becomes an increasingly powerful commerce intermediary.

This episode is sponsored by Mirakl Ads

Timeline

[00:00] – OpenAI’s ad announcement and why a sponsored hot sauce recommendation matters more than it seems

[01:26] – Why AI-enabled shopping will succeed where the Metaverse and voice commerce failed

[02:00] – The real pain in today’s ecommerce experience and why consumers are primed for change

[03:24] – Trust, culture, and the rise of AI as a shopping companion (not just a tool)

[05:00] – How OpenAI ads threaten the 70-80% margins of onsite retail media

[09:45] – Why in-store retail media may be the most defensible channel in an AI-driven future

Links & Resources

• My full January 20 article on The Drum - Why OpenAI’s ad announcement should worry retail media networks
• Read my related articles:
  • Should Your Industry Advertise in AI Media in 2026?
  • ChatGPT Ads Are Here. I'm Not Panicking.
  • Three Companies Monetizing Moments That Most Retailers Ignore
• Atlanta-based retail media professionals: Wednesday, February 25 is the next In-Person Atlanta Happy Hour! RSVP here.
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn

New data from Sensor Tower confirms what many of us suspected but couldn’t yet prove: AI-assisted shopping on Amazon has quietly crossed the threshold from experiment to default behavior. During the 2025 holiday season, Amazon’s AI assistant Rufus didn’t just influence shopping — it captured a disproportionate share of actual purchases. In this recap of my recent article for The Drum, I break down what the data really tells us, why Amazon’s headline claims may have undersold the impact, and how AI-assisted journeys are reshaping conversion dynamics.

I also unpack what this means for retailers and brands as AI becomes a primary decision aid. From late-funnel “rescue” moments, to early decider confidence boosts, the evidence suggests we’re not dealing with a single funnel anymore. And if AI assistants replace search as the dominant interface, the future of retail media may depend less on placement, and more on inclusion.

This episode is sponsored by Mirakl Ads

Timeline

[00:00] Why AI-assisted shopping is no longer a novelty and how Rufus captured 66% of purchases on Black Friday

[01:02] Andy Jassy’s $100B Rufus claim and why the industry struggled to validate it

[02:22] How Amazon positions Rufus against third-party AI shopping agents

[03:26] The strategic restraint that sets Rufus apart from other retailer AI experiments

[04:45] Sensor Tower’s “cart reconsideration” journey and a surprising 50% conversion rate

[08:21] What AI-assisted shopping means for the future of retail media monetization

Links & Resources

• My full article on The Drum - While everyone debates agentic shopping, Amazon’s Rufus is racking up sales
• Sensor Tower research results - Retail Embraces AI: How Did Rufus Impact Amazon's November Sales?
• 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"
• Atlanta-based retail media professionals: Wednesday, February 25 is the next In-Person Atlanta Happy Hour! RSVP here.
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn

Sometimes I feel like the town crier waving a bell about AI and retail media, proclaiming "the end is nigh!", but there's a reason I keep humming the same tune. AI-enabled shopping isn’t a future problem. It’s already reshaping how consumers discover, research, and decide what to buy, yet much of the retail media industry is still eerily quiet about it.

In this episode, I react to telling statements made by Sam Khoury, Chief Strategy Officer at Marketecture, who recently appeared on the ADSN podcast. What happens when shoppers move their intent upstream — away from retailer-owned surfaces and into LLMs like ChatGPT? If retail media was built on upper-funnel signals, what happens when those signals disappear? Sam shares insights that every retailer, brand, and retail media leader needs to be paying attention to right now.

This episode is sponsored by Mirakl Ads

Timeline

[00:00] Why AI is the “silent concern” no one in retail media wants to talk about

[01:09] Sam Khoury on why hiding from AI-driven consumer behavior won’t work

[02:30] The data point retailers can’t ignore: AI referrals and in-store LLM usage are surging

[03:20] How AI tools are replacing Google as the starting point for research and discovery

[04:33] The real retail media risk: losing upper-funnel signals, surfaces, and measurement

[07:36] Why this shift may be bigger than mobile, and what early recognition enables

Links & Resources

• Listen to the full ADSN interview with Sam Khoury - Sam Khoury on B2B Creator Businesses, Netflix+WB4EVA, the $1B Digital Twin, and Meta the Energy Company
• Subscribe to the ADSN podcast, hosted by James Borow and Daniel Druger
• Follow Sam Khoury on LinkedIn
• Subscribe to Marketecture
• Read my related articles:
  • The Secret Hopes & Dreams of RMN Leaders
  • Why RMNs Keep Their Tech Stacks Secret
  • Costco: The Retail Media Network That Refuses to Promote Itself
• Atlanta-based retail media professionals: Wednesday, February 25 is the next In-Person Atlanta Happy Hour! RSVP here.
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn

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