Retail media has rapidly evolved from an experimental tactic to a core pillar of omnichannel marketing. Yet for small and mid-size brands (SMBs), the opportunity isn’t necessarily in spending more—it’s in spending smarter.
Based on analysis from Bird Dog and Keen, drawing on data from 400+ brands and $16 billion in annual media investment, a clear message emerges: brands can unlock better returns through strategic reallocation rather than budget expansion.
Where the Money Flows—and Where It Should
Despite a mature media environment, 75% of retail media dollars still go to search, with Amazon capturing two-thirds of total spend. However, performance data shows that alternate platforms often deliver better ROI, especially for SMBs.
- Walmart Connect, Kroger Precision Marketing, and Instacart are outperforming Amazon in efficiency for many brands.
- Underutilized platforms like Sam’s Club, Meijer, and Albertsons present opportunities for incremental growth.
- Category matters: food & beverage brands often see strong ROAS from retailer networks, while durable goods brands may find more efficient conversions away from Amazon.
Reallocating for ROI: Tactical Playbook
For SMBs, the shift doesn’t require massive change. Instead, consider reallocating 10–20% of Amazon search budget toward:
- On-site display ads on retailer platforms
- Off-site and programmatic placements tied to retailer audiences
- Retailer-connected streaming TV ads (e.g., Walmart DSP)
This mix enables better audience targeting, creative diversity, and a more precise measurement of incrementality.
Aligning Teams Around Performance
Finally, ROI gains require cross-functional alignment—especially between finance and marketing. Clear definitions of what "working" means, strong test designs, and measurement rigor are essential.
For SMBs navigating retail media, the key isn't outspending competitors—it's outsmarting them through data-informed reallocation and platform diversification.
