Ad Spend Surges on Major Platforms and Retail Media Networks, Challenging Open Web Dynamics – Wednesday, February 4, 2026

Ad spending is increasingly concentrated on major platforms, retail media networks, and AI-driven solutions, presenting significant challenges for the open web. This shift signals a strategic move toward closed-loop ecosystems that prioritize personalized and measurable advertising.

Who should care: VPs of retail, store operations leaders, eCommerce directors, customer experience teams, and retail technology decision-makers.

What happened?

Ad spending is undergoing a marked transformation, with a growing share of budgets flowing to major platforms and retail media networks (RMNs). These networks are capturing increased investment due to their ability to deliver highly targeted and personalized advertising experiences. The integration of artificial intelligence into advertising strategies is accelerating this trend, as businesses seek to improve campaign effectiveness and maximize return on investment through AI-driven solutions. This evolution is reshaping the advertising landscape, posing a challenge to the traditional open web, which risks losing relevance as advertisers shift dollars toward platforms offering more precise targeting and closed-loop measurement. In parallel, airlines are emerging as new commerce media platforms by leveraging their extensive customer data and broad reach to attract advertising spend. This development highlights the growing importance of ecosystems that can provide advertisers with direct access to engaged audiences and measurable outcomes. Collectively, these changes underscore a strategic pivot toward platforms that combine rich data assets with AI capabilities to deliver personalized, closed-loop advertising solutions.

Why now?

This shift in ad spending reflects broader market dynamics favoring data-driven and personalized marketing approaches. Over the past 6 to 18 months, the retail sector has rapidly adopted AI technologies that enhance the precision and efficiency of advertising campaigns. This adoption aligns with a larger movement toward closed-loop ecosystems, where platforms with strong data and AI capabilities can offer advertisers more targeted and measurable solutions. At the same time, evolving consumer behaviors—shaped by digital transformation and rising expectations for personalized experiences—are driving advertisers to reallocate budgets toward platforms that can effectively meet these demands.

So what?

The implications of this shift are significant for both retail and advertising sectors. Strategically, companies equipped with robust data assets and AI-driven capabilities are positioned to capture a growing share of advertising revenue. This trend places pressure on the open web to innovate and adapt in order to remain competitive in an increasingly closed-loop advertising environment. From an operational perspective, businesses must reassess their advertising strategies to prioritize platforms that offer personalized, measurable outcomes and leverage AI to optimize campaign performance.

What this means for you:

• For VPs of retail: Focus on building partnerships with platforms that provide strong data integration and AI-driven advertising capabilities.
• For eCommerce directors: Incorporate AI tools to improve the targeting precision and overall effectiveness of your advertising campaigns.
• For customer experience teams: Prioritize delivering personalized experiences that align with evolving consumer expectations and drive deeper engagement.

Quick Hits

• Impact / Risk: The migration of ad spend toward AI-enabled platforms could marginalize traditional open web advertising channels.
• Operational Implication: Retailers must adapt by focusing on platforms that deliver measurable, personalized advertising outcomes.
• Action This Week: Review current advertising partnerships and explore opportunities with retail media networks and AI-driven platforms.