Retail media is being rewritten. For years, the dominant approach has been to follow Amazon’s blueprint — build digital ad infrastructure, optimize for clicks and scale fast. But outside the top handful of players, that model is hitting a wall. Because retailers are not Amazon. The ‘one-size-fits-all model’ breaks down when you’re not a digital-only behemoth.
Across the long tail of retail, from regional grocery chains to convenience stores to specialty shops, the reality on the ground doesn’t match the assumptions behind the old playbook. These retailers are rooted in physical spaces, local habits and in-the-moment decision-making. And yet nearly all retail media investment still flows into digital channels that prioritize online behavior.
The industry is facing a structural disconnect: 84% of retail transactions still happen in-store, but 99% of retail media dollars are spent online. That’s not just a misalignment — it’s a missed opportunity to build something better.
The Limits of a Digital-First Mentality
Amazon’s dominance in retail media is built on its strengths: a massive online shopper base, end-to-end control over the customer experience and a deeply integrated tech stack. But that model simply doesn’t translate to retailers whose value is defined by physical presence.
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Think about gas stations, corner stores and grocery retailers. These businesses thrive not on planned ecommerce behavior but on impulse, convenience and brand familiarity. Their primary interaction with consumers is spatial, not digital. And yet, most media strategies they’re offered are optimized for desktop clicks and app installs.
This is where the Amazon playbook breaks down. What worked for a company that reinvented online shopping doesn’t necessarily work for companies whose competitive edge lives offline.
We’re in the Recalibration Phase
What we’re seeing now is a necessary correction. Retail Media 1.0 was about digitization — get online, plug in programmatic tools, mirror what worked for Amazon. But the next phase of retail media is going to look very different.
It’s about convergence — blending shopper marketing, trade budgets and media into a single, flexible strategy. It’s about breaking down silos — using data from physical spaces to influence digital actions, and vice versa. And it’s about relevance, not just reaching people, but doing so in the context of where they are and what they’re doing.
In this new phase, long-tail retailers have a critical window to rewire how they think about media. The goal isn’t to catch up to Amazon. It’s to leapfrog it by building something more local, more integrated and more attuned to real-world behavior.
The Architecture of What’s Next
To get there, retailers need to rethink their internal systems. Marketing and merchandising teams can’t operate in silos. Media can’t be a bolt-on to ecommerce. It needs to be embedded into the very infrastructure of the store — at the shelf, at the register and increasingly, in the data stack that supports personalized experiences.
This is especially true for specialty retailers like Ulta and Sephora, which have strong brand identities and well-defined audiences. These retailers are already ahead in understanding segmentation and loyalty, but they have a chance to do more. By pairing physical context with smarter media activations, they can create seamless moments that build both brand equity and conversion.
The shift also will require new tools. Not just ad platforms but systems that help retailers activate localized campaigns at scale, measure in-store engagement with the same rigor as digital metrics and unify budgets across marketing disciplines.
Build for Your Strengths — Not Someone Else’s
The risk in doing nothing is real. As retail media consolidates, larger players are setting the pace. If long-tail retailers don’t act now, they could be boxed out or forced to hand over their media capabilities to third parties without capturing the real value.
But there’s also a massive upside. The long tail has strengths the giants can’t replicate: proximity, frequency, community and trust. These are powerful assets in an era when consumers crave authenticity and connection. The retailers that embrace a more integrated, hybrid model of media — one that fits their business, not someone else’s — can turn those strengths into a competitive advantage.
The Future is Connected
The next chapter of retail media won’t be about digital versus physical. It will be about how seamlessly those two worlds can interact. The winners will be the retailers that think like builders, designing flexible systems, leveraging their own unique assets and creating media experiences that feel native to how people shop today.
Retail’s long tail is bigger than most people realize. If it gets the tools and strategies it needs, it could also be one of the most powerful engines for the next phase of retail growth.
The future is now and we are already behind. It’s time to catch up.
Marc Walkin is the Head of Global Marketing at QSIC, the global intelligent in-store audio platform. With more than a decade of experience across CPG and retail, he’s helped position and scale brands like Stop & Shop, PopCorners and Staples. Prior to QSIC, he co-founded Turbyne, a retail media startup that was acquired in 2024. His experience sits at the intersection of retail media, brand experience and emerging technology.
