A New Wave of M&A Shows that Retail Media’s Easy Growth Is Gone

Taken together, Catalina and TPN’s moves indicate that shopper marketing data is only as good as the tech stack that it’s plugged into.

Elsewhere, Amazon-focused consultancy Podean acquired retail agency Ad Advance to expand its technology expertise and make inroads with retailers including Walmart. Similarly, Spins’ deal to buy MikMak is aimed at adding analytic tools for marketers as well as relationships with non-grocery retailers like home improvement, beauty, and pet.

These deals represent the kind of consolidation that analysts have long predicted for the retail media space. The deals also represent advertisers’ demand to measure the impact of digital advertising.

“With the focus on AI and outcomes, ’26 is the year of ‘show me the money,’” said Conor McKenna, partner at investment firm Luma. “That includes the commerce media ecosystem, where there’s been a ton of hype—retailers and other platforms are trying to figure out where they can really drive value in their business. The ease of new channel excitement is gone, and now it’s ‘prove to us the value.’”

Preparing for consolidation

Broadly, the recent M&A and shuffling is aimed at improving the retail data-collection process for marketers. Folding these firms into advertising and data companies could help better serve advertisers as the next phase of retail media tightens budgets and requires more streamlined tech stacks.

Expect more M&A to come as advertisers look for better ways to buy and measure ads while retailers pitch advertisers on shifting brand budgets from digital and TV into retail media.

“It’s a sign of probably more M&A activity,” said Nich Weinheimer, chief strategy officer at Skai. “This industry is ripe for it, and especially when there’s enormous pressure to evolve and thrive at the pace of AI.”

Retail media ad spend continues its double-digit growth, but it’s starting to slow.

“A fast-growing market has to catch up with itself, it has to rationalize,” Lipsman said.

The gains aren’t evenly distributed either, he said. Amazon and Walmart make up roughly 85% of total retail media ad spend, and they’re both continuing to grow at a steady clip. That’s what’s driving the overall growth metrics for the industry, which is projected to hit $70 million in 2026, according to Emarketer.

Everywhere else, though, it’s a mixed bag. “That’s the moment we’re in right now,” Lipsman said.