Can retail media networks survive the shift to agentic commerce?

“I’m very close to actually having AI do my grocery shopping,” Peterson said on a recent episode of the Digiday Podcast. Peterson’s agentic meal planning system includes platforms like Notion and Claude to generate meal plans and organize grocery lists.

Peterson’s not alone. According to an April report from Adobe, 55% of people turn to AI for shopping inspiration and ideas. That means more eyeballs on AI platforms like ChatGPT, Gemini and Copilot — which, in turn, could mean fewer eyeballs on retailer sites, like Walmart or Macy’s.  

In other words, if more eyeballs divert from retailer websites to LLMs, expect cracks to show in the very foundation of the retail media network business. That’s the precarious position agentic commerce puts retail media networks in, explored on this episode of the Digiday Podcast.

“If you’ve got more people that are starting their search on ChatGPT, Gemini, Claude and these other LLMs, what then is the case for a retail media network,” said Kimeko McCoy, Digiday senior marketing reporter, the author of this story, on the podcast. 

That’s the predicament retail media networks from Walmart to Macy’s are facing. Retailers built their business on search traffic to their own sites. On-site ad inventory, however, is limited. There’s been a recent push toward off-site channels, in which RMNs partner with streaming and social platforms, allowing advertisers to leverage RMN data and off-site ad inventory.

For example, Walmart Connect’s acquisition of smart-TV maker VIzio or Instacart’s partnerships with Roku. Target’s Roundel, seemingly saw the writing on the wall as well, Back in February, the retailer became one of the first to promote both its own business and select partners within the LLM, per Digiday reporting. 

“The challenge there is does the value or really the performance of retail media advertising hold up in these environments,” Peterson said. 

There’s also the question of incrementality and attribution, something RMNs have been grappling with as the off-site push continues. Agentic commerce stands to compound that issue, muddying advertisers’ ability to prove RMNs are driving new sales. 

“If they prove that out, then that will help them to continue to exist and attract some form of revenue in an agentic commerce world,” Peterson said.