As advertisers navigate Google’s recent search changes that favor its emerging AI models, retail media strategies could offer them heightened visibility and control.

• Google's expansion of its AI Overview search results gives consumers concise answers and fewer reasons to leave the search page. As it pushes zero-click search, publishers are losing traffic, and brands are struggling to break through.

To access both first-party data and high-intent consumers, advertisers have increasingly embraced retail media networks (RMNs).

• 83% of advertisers worldwide plan to either maintain or increase their RMNs ad spend in 2025, per an October 2024 NCSolutions survey.

“RMNs are taking note by expanding their own AI capabilities to deliver sharper targeting and better performance,” said Eric Brackmann, VP of commerce media at Koddi. “Many are already working to connect product data and buying paths directly to the platforms consumers are using.”

Retailers enhance their search experience

While Google’s new AI features can answer users’ questions quickly, those seeking the most relevant products might jump directly to the retailers, said Stasia Fulginiti, director of paid search and YouTube at Rain the Growth Agency.

“As Google shifts to a more editorialized search experience, consumers looking for transactional clarity may increasingly turn to retail platforms… for straightforward results,” she said.

While 88% of consumers use retail site search, per a July 2024 Disqo survey, retailers have an opportunity to optimize the search experience.

• 68% of consumers say retail website search needs improvement, per a December 2024 Constructor survey.
• 42% of shoppers say that although their search results seem technically relevant to their queries, the products aren't what they're actually hoping to see, per Constructor.

Retailers lean on search engines due to their detailed product data like pricing, reviews, and availability, said Michelle Abdow, president and CEO of Market Mentors, LLC—making RMNs well-positioned for more mid and lower-funnel ad dollars.

“Consumers trust these environments for search and research, and we expect their role in the funnel to grow substantially in the coming year,” she said.

Bringing first-party data to the search bar

RMNs attract advertisers due to their access to first-party data, allowing brands advanced targeting that connects them to the right consumers and queries.

• Agencies are advising their clients to invest in retail media to raise brand and product awareness (48%) and as a first-party data source (34%), per an October 2024 Digiday survey.

“Brands are looking to maintain consumer engagement and drive performance, where they have first-party data access, high-intent traffic, and closed-loop attribution,” said Sunava Dutta, chief product officer at Pacvue.

While Google’s AI updates don’t signal a stronger shift into retail media, broader attribution challenges make RMNs more attractive, said Ashwini Karandikar, executive vice president of media, technology and data at the 4As.

“As cookies decline and privacy regulations tighten, the value of first-party data is rising, positioning retail media networks to benefit,” she said. “Retailers with robust, data-rich platforms can deliver detailed, consumer-specific responses.”

Diversifying the paid search budget

As Google continues to roll out updates, advertisers are considering the platform’s role in their ad spend while eyeing new spaces like social search and retail media, said Dutta.

“While the impact has been mixed, it’s clear Google is still actively experimenting with the balance between utility, monetization, and ad visibility,” she said. “The stakes are high—and advertisers are watching closely.”

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