2026 Retail Advertising Outlook

How retail marketers are reallocating spend, embracing AI, and closing the orchestration gap

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SEARCH & SOCIAL DRIVE RETAIL MEDIA SPEND

Performance and discovery channels lead retail investment growth

Retail marketers are prioritizing channels closest to purchase, led by search (73% increase) and social platforms (67%), while investment also grows across AI media (58%), CTV (50%), and digital video (50%). Retail media networks and influencer channels (42% each) remain steady, as marketers balance brand visibility with performance-driven engagement.

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AI & DIGITAL COMMERCE SHAPE CONSUMER BEHAVIOR

AI-driven discovery and streaming environments influence retail journeys

Retail marketers overwhelmingly cite generative AI (92%) as the top consumer trend, reflecting how shoppers increasingly rely on AI-powered search and discovery experiences. Streaming and e-commerce behaviors (50% each) further highlight how digital environments continue to reshape how consumers browse, research, and purchase products.

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BRAND, PERFORMANCE, & ORCHESTRATION DRIVE INVESTMENT

Marketers balance brand building with performance

At 58%, marketers are equally prioritizing brand advertising, measurement, and performance-driven media to drive both awareness and conversion. The growing importance of automation and cross-platform orchestration (50% each) shows a rising focus on connecting campaigns and insights across channels to improve efficiency and performance.

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AI SUPPORTS INSIGHT & EXECUTION

AI improves analytics and campaign delivery

Retail marketers most often apply AI to data analysis (60%) and market research (50%), helping teams better understand shifting consumer behavior. Adoption is also growing across creative development (40%), campaign optimization (30%), and orchestration (30%) as retailers look to accelerate execution across channels.

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GOVERNANCE & DATA LIMIT AI SCALE

Compliance, expertise, and data access slow broader AI adoption

Despite strong adoption, broader AI deployment is slowed by brand safety concerns, data quality issues, and lack of internal expertise (42% each). Governance (33%), ROI uncertainty (25%), and system connectivity challenges (25%) continue to slow AI expansion across marketing operations.

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AI GOVERNANCE & MEASUREMENT LEAD INDUSTRY CONCERNS

Balancing automation growth with control and accountability is critical

The top challenges retail marketers cite are balancing AI adoption with brand safety and accuracy, measurement complexity, and AI governance uncertainty (58% each). Managing automation while maintaining human oversight (50%) and ongoing platform fragmentation (42%) further complicate campaign execution.

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ORCHESTRATION IS NOW ESSENTIAL

Unified execution across systems is critical for retail marketers

All retail marketers surveyed say orchestration across ad tech systems is important, with 75% calling it extremely important. With marketers lacking the systems to share data, coordinate decisions, and unify workflows, closing this orchestration gap will be essential to delivering consistent and efficient audience engagement in 2026.

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The Retail Takeaway

Retail marketing in 2026 is defined by AI-driven discovery, performance investment, and rising automation. Success will depend on balancing innovation while orchestrating data, media, and creative systems to deliver measurable, compliant, and consumer-first experiences.

For more insights across all verticals, download Mediaocean’s 2026 Advertising Outlook Report.