Show notes
In this episode of Next in Media, I sit down with Kiri Masters, host of the Retail Media Breakfast Club podcast, to explore the biggest shifts happening in retail media advertising. We dive into the recent announcement about ads coming to ChatGPT and what that means for brands trying to meet consumers where they are. Kiri shares her perspective on whether AI-powered shopping will truly disrupt the retail media landscape - and why she's optimistic that LLM-based ads could actually be more relevant and less annoying than traditional formats. We also unpack the Walmart-Google partnership and discuss what it signals about the future of conversational commerce.Beyond the AI conversation, we tackle some of the industry's most pressing questions. Will we see consolidation in retail media networks this year? Can shoppable TV finally gain traction? And what happens when offsite retail media faces competition from platforms with their own transactional data? Kiri brings both historical context - including a fascinating story about Piggly Wiggly's self-service revolution - and forward-looking insights about how brands and retailers need to collaborate differently. Whether you're a marketer navigating this space or just curious about where AI and commerce intersect, this conversation offers a clear-eyed look at what's real, what's hype, and what's coming next._______________________________________________Key Highlights 🤖 Ads in AI Assistants: Kiri explains why she's optimistic that ads in LLMs like ChatGPT could actually enhance the user experience rather than detract from it - as long as they're contextually relevant and leverage the deep personal insights these platforms have.🛒 The Walmart-Google Partnership: Why retailers want to maintain control as the merchant of record even as they experiment with AI-powered shopping surfaces, and what this means for the competitive landscape between retailers and tech giants.📊 Amazon's Retail Media Dominance: How Amazon has trained brands to expect exceptional reporting and data-driven insights, creating a high bar that other retailers struggle to match - and why CFOs love the platform's transparency.🔄 Consolidation is Coming: With over 250 retail media networks globally but brands only wanting to work with 5-7 partners, Kiri predicts we'll see more partnerships like Macy's and Amazon this year as the market rationalizes.💡 The Piggly Wiggly Lesson: A fascinating historical parallel about how the first self-service grocery store in 1916 got consumers to change behavior by passing savings directly to them - a lesson for how AI shopping might need to work.⚠️ Offsite Media at Risk: If AI-powered shopping takes off, offsite retail media networks could face serious competition as LLMs gain access to transaction and intent data that retailers previously controlled.🎯 Back to Category Growth: Kiri advocates for retailers and brands to move beyond performance-focused land grabs and return to collaborative trade marketing strategies that grow entire categories together._______________________________________________Resources & Next Steps 🎙️ Follow Kiri Masters and subscribe to Retail Media Breakfast Club🎧 Subscribe to Next in Media on Apple Podcasts_______________________________________________Chapter Timestamps 00:00 Introduction - Ads in AI assistants00:40 This week on Next in Media01:00 Meet Kiri Masters of Retail Media Breakfast Club01:40 Ads coming to ChatGPT and conversational search02:10 How brands follow consumers to new platforms03:30 Will AI commerce disrupt retail media?04:00 Will ads in LLMs work like Google and Facebook?04:40 The importance of trust in AI assistants05:00 Why AI ads could be better than traditional ads06:00 Context and relevance in LLM advertising07:00 The trust equation in conversational AI08:00 Understanding AI ads won't necessarily suck08:10 Walmart and Google partnership announcement08:30 Are people ready to shop through AI interfaces?09:00 Building trust through repeated exposure to LLMs09:40 Story time - buying an iPod on eBay in 199911:00 Testing Instacart on ChatGPT11:40 Sao CTV ad12:40 Why Walmart partnered with Google13:20 Retailers want to remain merchant of record14:40 Can every retailer integrate with AI platforms?15:20 Consumer choice and retailer selection criteria16:00 The Piggly Wiggly story - self-service revolution17:00 Consumer behavior change requires value proposition17:40 State of retail media today18:20 Amazon's dominance in retail media19:20 Offsite retail media and in-store opportunities20:00 How AI threatens offsite retail media networks20:40 Open web and retail media advertising21:30 Competition for audience data between retailers and LLMs22:20 Could LLMs build offsite media businesses?23:10 Will we see consolidation in retail media networks?24:00 The Macy's and Amazon partnership example24:40 Shoppable TV and CTV shopping outlook26:00 How AI shopping might impact retail media26:30 Moving beyond land grabs to category growth27:20 Wrap-up and thanks