“Wow, I can’t wait for Amazon Prime Day to see what ads Amazon rolls out!” --
said no one ever!
One of the most touted benefits of retail media networks (RMNs) -- Amazon
Ads, Walmart Connect, Target’s Roundel and others ---is precise audience targeting at or near the point of purchase, and closed-loop measurement systems. In our metrics-obsessed era, it’s
no wonder brands are increasingly shifting towards these platforms, away from more traditional, though less measurement-focused, channels such as linear TV.
Amazon in particular has been
doubling down on Amazon Ads, billing it as an AI-powered, one-stop shop for “full funnel,” end-to-end advertising and marketing needs. These messages appear to be resonating with
advertisers, as Amazon’s ad business reported 24% year-over-year growth in Q3 2025.
I commend Amazon and others for their vision and technological innovation. But do today’s
marketers -- mesmerized by efficiency, numbers, and performance -- risk missing out on the truly spontaneous and authentic connection opportunities afforded by more traditional channels?
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Consider that more than three-quarters of viewers report excitement for Super Bowl commercials (far more than the halftime show). Even as ever-increasing shopping volumes migrate online, the Super
Bowl stands out as the advertising industry’s most expensive annual placement, costing about $8 million for a 30-second spot in 2025, up from $7 million in 2024.
It seems advertising on
traditional linear TV continues to have an enduring magic and power that digital ads just haven’t been able to match. The Trump campaign’s recent McDonald’s and garbage truck stunts
provide another example. No matter your political opinion, it’s hard to argue that they didn’t highlight the power of memorable, viral imagery in controlling the news cycle and achieving
media dominance without paying even a single cent.
In my view, RMNs serve a definite purpose.They are a proven, measurable tactic, enabling precision marketing and targeting often when
shoppers are already in a buying mindset, both online and in-store. But even as RMNs expand into connected TV to capture that living room feeling, they often bring a performance mindset to this brand
environment, treating viewers like data points to be retargeted rather than audiences to be entertained. RMNs do not build relationships in the way that more traditional channels do (at least not
yet), and can actually risk making a brand a commodity in a “sea of stuff.”
That’s not to suggest that all CPG brands can (or should) entirely forgo RMNs and instead pay
millions for highly coveted placements on more traditional channels. Rather, RMNs should be considered as one component of an ideal mix supporting marketing goals, which may include more
cost-effective linear channels like local news and sporting broadcasts (these are often highly effective at tapping into audiences’ passions and forging deep connections). In a cost-obsessed
world, more traditional channels -- linear TV, social media, out-of-home (OOH), radio and more -- may seem less en vogue, but their utility as a vehicle for conveying creative brilliance and mastery
while building audience relationships should not be overlooked.