Retail Media In OTT Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Retail Media In OTT Market Trends and Insights

First-Party Retailer Data Replacing Third-Party Cookie Dependence

First-party retailer data has become one of the clearest structural advantages in the retail media in OTT market because it gives advertisers access to verified shopping signals rather than inferred browsing behavior. Retailers with scaled loyalty programs and repeat transaction histories are in a stronger position because those datasets are easier to activate in privacy-aware environments than older cookie-based identifiers. European compliance frameworks are also reinforcing the need for clearer consent, more transparent processing, and stricter operational controls in commerce media measurement and activation.^{[1]IAB Europe, “IAB Europe Releases Updated Commerce Media Measurement Standards V2,” IAB Europe, iabeurope.eu} This shifts the competitive balance toward companies that can connect consented shopper identity with streaming ad delivery in a way that platforms and supply partners can actually use in production. The retail media in OTT market, therefore, rewards data depth more than simple audience volume, especially when advertisers want measurable outcomes tied to real transactions. Mid-tier retailers without broad loyalty coverage are more likely to depend on consortium approaches or third-party partnerships if they want to remain relevant as targeting standards tighten.

Rising Demand For Closed-Loop Attribution In CTV

Closed-loop attribution has become a central reason advertisers are allocating more budget to the retail media in OTT market because it links ad exposure on streaming platforms to eventual purchase behavior. The IAB has pushed standardized Conversion APIs for connected TV because server-to-server measurement is increasingly seen as the practical bridge between media delivery and downstream business outcomes.^{[2]IAB, “Bridging the Outcome Gap, IAB Unveils New Guide on Standardized Conversion APIs for Connected TV,” IAB, iab.com} NBCUniversal said at its 2026 Upfront presentation that its Instacart data integration delivered an average 5.5x return on ad spend for CPG brands and reached 51% new-to-brand users.^{[3]NBCUniversal Media, “NBCUniversal Delivers the Next Era of Media and Advertising at 2026 Upfront Presentation,” NBCUniversal, nbcuniversal.com} Results of that kind are difficult for traditional linear television to replicate because they depend on direct shopper data and purchase feedback loops. In the retail media in OTT market, that changes how premium streaming inventory is valued because brands begin to assess it through performance outcomes instead of exposure alone. The result is a stronger push toward measurable video buying, tighter accountability, and more pressure on platforms that still cannot connect media spend with sales outcomes clearly enough.

Expansion Of Shoppable Video And Interactive OTT Formats

Shoppable and interactive formats have moved beyond isolated pilots and are becoming a more regular budget line inside the retail media in OTT market. In October 2025, the IAB Tech Lab released the CTV Ad Portfolio, which standardized 6 new ad formats, including pause ads, menu ads, screensaver ads, in-scene ads, squeezebacks, and overlays, and this opened more of the category to programmatic buying without high-friction direct execution. Amazon Ads said its Interactive Video Ads drove 6x higher brand search, 4x more product detail page views, and 5x higher purchase rates than standard streaming TV campaigns across 14,518 campaigns measured through full year 2025. These formats matter because they compress discovery, engagement, and response into the same viewing session instead of forcing a separate path back to retail. At the same time, format standardization lowers entry barriers for competing platforms, which means the retail media in OTT market may expand faster even as first-mover advantages become less durable. That dynamic makes innovation important, but it also means scale will depend increasingly on data quality, execution ease, and measurement strength rather than format novelty alone.

AI-Powered Audience Segmentation And Creative Optimization

AI is reshaping both audience planning and ad delivery in the retail media in OTT market because it allows networks to personalize creative and audience selection at a much larger operational scale. Amazon Ads launched Dynamic TV Creative on May 11, 2026, giving Prime Video advertisers a way to personalize Interactive Video Ads based on viewer shopping behavior. Amazon said the product can adjust product imagery, call-to-action language, and headline copy in real time across awareness and consideration stages. Cognitiv also launched AudienceGPT in March 2026, positioning it as a deep learning tool for building dynamic predictive audiences across audio, CTV, social, and programmatic media. This makes rich transaction history more valuable than static demographic grouping because better data architecture produces better personalization and better audience matching. As a result, the retail media in OTT market is shifting competitive advantage toward networks that can combine purchase signals, automation, and creative variation in one workflow.

Fragmented Measurement Standards Across OTT And Retail Media Networks

Measurement inconsistency remains one of the clearest barriers to broader advertiser adoption in the retail media in OTT market. Premion and Advertiser Perceptions found that 1 in 3 CTV and OTT advertisers identified inconsistent measurement standards as their primary concern in their 2026 survey. IAB Europe released updated Commerce Media Measurement Standards V2 after a 2025 public comment process and kept a 30-day lookback window as the default while allowing flexibility for different use cases. The problem is that network adoption is still uneven, and the framework is not yet enforced as a universal contractual rule across the ecosystem. That leaves advertisers comparing results that may be built from different attribution windows, definitions, and reporting assumptions. In the retail media in OTT market, larger networks can benefit from that opacity because they are better able to defend proprietary return claims when outside validation is still inconsistent.

Difficulties In Integrating Retail, Ad Tech, And Streaming Data Systems

Technical integration remains a structural barrier for the retail media in OTT market, especially when advertisers want to run one campaign across multiple retailer networks and streaming environments. The IAB said 72% of publishers cited technical complexity as a barrier to connected TV Conversion API adoption, even though that architecture is central to connecting ad exposure with purchase outcomes. Server-to-server integration matters because it allows identity, event, and outcome data to move without relying on fragile browser-based systems. Many advertisers still have to manage retailer inventory one network at a time, and that duplication makes planning and attribution heavier than it needs to be. Clean room style data matching can help solve part of that problem, but it requires engineering capacity and coordination that many smaller networks and mid-sized brands still do not have. The result is a wider gap between large platforms with end-to-end infrastructure and smaller participants in the retail media in the OTT market that cannot yet offer the same measurement accuracy or operating simplicity.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

Segment Analysis

By Advertising Format: Video Ads Anchor Both Scale And Growth

Video ads captured 55.26% of advertising format revenue in 2025, and they are also projected to grow at a 12.82% CAGR through 2031. This lead reflects the fact that video can combine retailer transaction data with premium sight, sound, and motion inventory in the same environment. In October 2025, the IAB Tech Lab released the CTV Ad Portfolio and standardized 6 new formats, including pause ads, menu ads, screensaver ads, in-scene ads, squeezebacks, and overlays, which made programmatic execution easier for ad types that had often required direct publisher deals. That change supports broader adoption across the retail media in OTT market because it reduces friction for both buyers and sellers. It also makes video the format where commerce, creative, and measurement are most likely to come together in one transaction path.

Video ads also represented the largest share of the retail media in OTT market size in 2025, which means the format benefits from both scale and the strongest experimentation budgets. Amazon Ads said Interactive Video Ads delivered 6x higher brand search, 4x more product detail page views, and 5x higher purchase rates than standard streaming TV campaigns across 14,518 campaigns measured through full year 2025. Display ads still retain a meaningful place in smart TV home screens and banner overlay placements, while interactive ads remain smaller by current share but are gaining support as standardization improves execution. The format mix suggests that the retail media in OTT industry is moving beyond simple exposure selling and toward viewing experiences that are designed to trigger measurable shopping action.

By Platform Type: Retailer-Owned Networks Lead While Third-Party Scale Builds

Retailer-owned networks accounted for 58.91% of platform-type revenue in 2025, which confirms that direct shopper data ownership still gives retailers the strongest starting point. Their lead comes from the ability to combine transaction history, audience creation, campaign activation, and reporting in closely linked systems. That structure makes retailer-owned models especially attractive when brands want deterministic measurement and direct access to purchase-based targeting. The retail media in OTT market, therefore, still favors networks that can prove clear control over identity and outcomes rather than media supply alone. This also helps larger retailers defend pricing and advertiser attention even when streaming inventory becomes more widely available.

Third-party networks are projected to grow at a 12.93% CAGR through 2031, making them the fastest-growing platform type in the retail media in OTT market. Roku launched Roku Curate in April 2026, packaging Roku platform data with purchase and browsing signals from Best Buy Ads, Kroger Precision Marketing, Instacart, Fandango, Criteo, and Fetch into ready-to-activate CTV buys with closed-loop measurement. That move shows how streaming platforms are becoming distribution hubs for retailer data outside pure walled-garden environments. The segment tension is clear because retailer-owned networks lead in direct data control, while third-party models are scaling faster when brands need broader reach and easier programmatic access.

By Device Type: Smart TVs Hold The Base While Mobile Completes The Journey

Smart TVs held 42.56% of device type revenue in 2025, making them the largest device category in the retail media in OTT market. Big-screen viewing remains central because ad-supported streaming and premium video consumption are strongest in the living room. Smart TV environments also support immersive creative formats that are better suited to branded storytelling and shoppable overlays than smaller screens. This gives Smart TVs a stable revenue base even as device behavior becomes more distributed. Gaming consoles and laptops or desktops remain smaller segments, but they still matter where streaming activity overlaps with longer entertainment sessions and adjacent digital commerce behavior.

Smartphones and tablets are projected to expand at a 13.11% CAGR through 2031, which makes them the fastest-growing device category in the retail media in OTT market. Their role is less about replacing television and more about closing the loop after exposure, because shoppers can scan QR codes or act on send-to-phone prompts after seeing a streaming ad. That second-screen behavior supports shoppable CTV by moving users from awareness to action with less friction. The device split shows that scale remains anchored in the living room, while conversion increasingly moves through handheld screens.

By End-User: CPG Anchors Spend While Beauty Reallocates Growth

Consumer packaged goods represented 32.22% of end-user revenue in 2025, which made it the largest end-user group and a major anchor of the retail media in OTT market. The category has historically concentrated retail media investment because brands rely heavily on retailer shelf data, repeat purchase behavior, and promotion cycles. CPG also helps explain why closed-loop reporting is so important, because advertisers in this group want evidence that exposure affects repeat purchase and basket behavior. The retail media in OTT market continues to depend on CPG for spending stability, even when advertiser budget growth becomes less even across categories. That position keeps CPG central to how networks design audience products, reporting logic, and off-site activation.

Beauty and personal care is projected to grow at a 13.32% CAGR through 2031, making it the fastest-growing end-user segment in the retail media in OTT market. Amazon Ads said L'Oréal Paris became the global sponsor of Prime Video’s Elle series in 2025, combining branded content alignment, interactive video formats, and Amazon retail integration within a single campaign approach. That structure fits beauty well because inspiration, product storytelling, and purchase intent can all develop in the same streaming session. Electronics, apparel, and grocery remain meaningful mid-tier demand pools, while grocery and food delivery continue to gain relevance as retailer data partnerships expand across media and commerce environments.

Geography Analysis

North America held 51.24% of the retail media in OTT market share in 2025, which made it the largest regional contributor. That lead reflects the unmatched scale of retailer first-party data, mature ad-supported streaming infrastructure, and advertiser familiarity with closed-loop activation. Premion and Advertiser Perceptions found that 7 in 10 U.S. advertisers planned to increase their CTV or OTT spending by an average of 17% in 2026. This spending intent supports continued leadership for the retail media in OTT market because brands in the region are already comfortable buying measurable premium video against retailer data. The region also remains a proving ground for rollout strategy, and Amazon Ads confirmed plans to introduce Prime Video advertising in Belgium, Denmark, Norway, and Turkey in 2026 after building scale across its established streaming advertising base. 

Asia-Pacific is projected to grow at a 13.42% CAGR through 2031, making it the fastest-growing geography in the retail media in OTT market. Growth is being supported by mobile-first streaming behavior, expanding ad-supported OTT consumption, and the formalization of retail media models across key regional economies. The Asia Video Industry Association said in its 2026 report that OTT was positioned to overtake traditional pay TV as the largest source of content investment in the region for the first time. That inventory expansion matters because the retail media in OTT market needs scalable premium video supply before retailer data can be activated consistently across streaming environments.

Europe remained a significant growth geography in the retail media in OTT market in 2025, while South America, the Middle East, and Africa stayed earlier-stage but increasingly relevant. IAB Europe updated its Commerce Media Measurement Standards V2 in 2025, giving the region a stronger framework for attribution, lookback windows, and reporting discipline across commerce media activity. That standards push supports broader expansion because advertisers need more consistency when off-site retail media extends into connected television and video inventory. South America, the Middle East, and Africa are still building the conditions for faster adoption through mobile streaming growth, wider e-commerce participation, and rising interest in measurable media tied to transaction data.