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.
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🤖 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.
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00:00 Introduction - Ads in AI assistants
00:40 This week on Next in Media
01:00 Meet Kiri Masters of Retail Media Breakfast Club
01:40 Ads coming to ChatGPT and conversational search
02:10 How brands follow consumers to new platforms
03:30 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 assistants
05:00 Why AI ads could be better than traditional ads
06:00 Context and relevance in LLM advertising
07:00 The trust equation in conversational AI
08:00 Understanding AI ads won't necessarily suck
08:10 Walmart and Google partnership announcement
08:30 Are people ready to shop through AI interfaces?
09:00 Building trust through repeated exposure to LLMs
09:40 Story time - buying an iPod on eBay in 1999
11:00 Testing Instacart on ChatGPT
11:40 Sao CTV ad
12:40 Why Walmart partnered with Google
13:20 Retailers want to remain merchant of record
14:40 Can every retailer integrate with AI platforms?
15:20 Consumer choice and retailer selection criteria
16:00 The Piggly Wiggly story - self-service revolution
17:00 Consumer behavior change requires value proposition
17:40 State of retail media today
18:20 Amazon's dominance in retail media
19:20 Offsite retail media and in-store opportunities
20:00 How AI threatens offsite retail media networks
20:40 Open web and retail media advertising
21:30 Competition for audience data between retailers and LLMs
22:20 Could LLMs build offsite media businesses?
23:10 Will we see consolidation in retail media networks?
24:00 The Macy's and Amazon partnership example
24:40 Shoppable TV and CTV shopping outlook
26:00 How AI shopping might impact retail media
26:30 Moving beyond land grabs to category growth
27:20 Wrap-up and thanks