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Retail media isn’t slowing down.
From AI-powered shopping innovations and Walmart’s updates to its media offering, to concerns about Prime Day restock limits and the dreaded tariffs, April brought a whole new wave of change.
Here’s what mattered—and why it matters:
Amazon’s AI-Powered Shopping Innovations
Amazon recently introduced two major AI-driven features that signal a fundamental shift in how product discovery and shopping journeys will operate: Interests AI and Buy for Me. These developments underscore Amazon’s increasing focus on personalized, intent-driven experiences and its ambition to dominate not just ecommerce but the broader online shopping ecosystem.
Interests AI is a product discovery tool that allows Amazon shoppers to enter detailed prompts reflecting their hobbies and passions. Based on these entries—such as “innovative kitchen tools and cookbooks to level up my cooking”—Amazon curates personalized product recommendations, updating a dedicated section within the app and homepage feed.
Buy for Me, currently in beta, uses agentic AI to place orders on third-party brand websites directly from the Amazon app, only when those products aren’t available on Amazon. This feature minimizes the steps in the purchasing journey, extending Amazon’s influence beyond its marketplace.
Pros:
- Enhanced Personalization: Interests AI shifts discovery away from generic keyword searches toward tailored recommendations based on individual user interests and intent.
- Faster Checkout: Buy for Me removes friction by enabling purchases from external brand sites through Amazon, streamlining the customer journey.
- Greater Visibility for Niche Brands: Products that align well with specific customer interests—and are optimized for AI-driven discovery—can enjoy increased exposure, even without ranking for high-volume keywords.
- Data-Driven Optimization Opportunities: These changes encourage brands to leverage tools like DSP and AMC to reach defined audiences with precision, turning audience insights into performance gains.
Cons:
- Uncertain User Experience: Some concerns have been raised about whether manually entering interests might introduce friction, similar to dated UX patterns seen on platforms like Quora.
- Limited Transparency (for now): It’s still unclear how much Amazon will rely on user input vs. inferred behavior via Rufus and other AI touchpoints, making it hard for brands to plan precise optimization strategies.
- Dependency on Amazon’s AI Interpretation: Brands must trust that Amazon’s AI will interpret PDP content and match it correctly to shopper intent, which may not always be accurate or timely.
- Increased Complexity in Content Strategy: Brands now need to consider not only keywords but also user intent, personalized queries, and audience-specific messaging in PDPs and ad targeting.
💡 Tips:
- Revamp PDPs with Intent-Driven Language: Optimize your product pages with detailed, natural language descriptions that align with real user interests and search queries, not just keywords.
- Monitor and Adapt to Rufus and Interests AI Trends: Keep track of how your products appear in AI-generated recommendations. This will inform which prompts or interests your products align with—and which to target more effectively.
- Invest in Audience-Based Targeting Tools: Use Amazon DSP and AMC to build detailed audience segments based on lifestyle, interests, and behaviors. The shift from search volume to personalized discovery means these tools will be central to future growth.
- Test and Learn with AI-Optimized Content: Treat AI optimization like SEO—test headlines, bullets, and imagery designed to appeal to specific shopper intents and analyze engagement shifts.
- Stay Agile: Amazon’s personalization features are evolving. Brands that can quickly respond to changes in the AI-powered discovery landscape will have a significant competitive edge.
Amazon’s Off-Site Sponsored Product Spend Controls: A Step Toward Better Budget Management
Amazon has recently introduced new spend control features for off-site sponsored product placements, allowing advertisers to more effectively manage their budgets on external platforms.
This update addresses the longstanding issue of unexpected spending by giving brands the ability to limit or reduce their off-site spending. These changes mark a significant shift in Amazon’s approach to budget management, especially as it extends its monetization beyond its core marketplace and into other ecosystems.
Pros:
- Improved Budget Management: The ability to control spend on off-site placements allows brands to allocate their advertising dollars more efficiently, reducing the risk of overspending on low-performing ads.
- Better Control Over Ad Spend: For agencies managing campaigns, this new control over off-site budgets ensures that their ad dollars are spent on the most effective placements, increasing the return on investment (ROI).
- Enhanced Transparency: This update gives advertisers clearer insight into where their money is going, helping them avoid the “leaky faucet” effect of wasted spend on underperforming placements.
- Step Toward More Advanced Tools: This is seen as an initial step towards more robust features that will allow for bulk adjustments and finer controls over all ad placements.
Cons:
- Manual Adjustments: At present, there is no way to bulk adjust campaign spend, making it a time-consuming process for brands that manage multiple campaigns. Each adjustment requires individual action, which could become cumbersome over time.
- Limited Automation: While the new controls offer more flexibility, they do not yet include full automation or the ability to completely turn off off-site placements. Advertisers still need to stay vigilant and make manual changes to optimize spend.
- Still in Development: These tools are just the beginning, and it’s unclear how much more refinement Amazon will bring to them in the future. There’s room for improvement in terms of user interface and control features.
💡 Tips:
- Review Off-Site Campaigns Regularly: With the ability to tighten control, it’s essential to regularly monitor off-site placements to ensure you’re only spending on high-value placements. This will help you avoid unnecessary drains on your budget.
- Utilize the New Controls to Minimize Leakage: Take advantage of the tighter budget controls to stop small, unnoticeable leaks in your ad spend. While it may not solve the problem entirely, it will reduce the inefficiency of these placements.
- Stay Prepared for Future Features: Keep an eye out for future updates that may offer more comprehensive control. This could include better automation, bulk adjustments, and even full opt-out options for off-site placements.
- Don’t Fall Into The Trap of ‘Noob Taxes’: Be aware that new ad platforms often come with a learning curve that includes unexpected costs—commonly referred to as the "noob tax." Familiarize yourself with the platform’s nuances to avoid unnecessary spend while you refine your strategies.
Walmart's Expansion into Vizio Inventory
Walmart has made two significant updates to its media offering through Walmart Connect, adding Vizio inventory for media buying and the ability to do advanced targeting for on-site display ads.
While these changes may not have garnered widespread attention, they represent meaningful steps in Walmart's push to strengthen its position in the retail media landscape.
By gaining access to unique inventory and enhancing targeting capabilities, Walmart is working to offer advertisers more precision and differentiation.
Vizio Inventory for Media Buying: Walmart has partnered with Vizio, bringing unique inventory into Walmart Connect for advertisers. This move allows advertisers to buy media placements on Vizio devices, providing them with access to a new set of customers that may not be reached through traditional retail media channels. This is a strategic effort to emulate what Amazon has done with its owned properties like Prime Video, Twitch, and IMDb TV.
Pros:
- Access to Unique Inventory: With the addition of Vizio inventory, Walmart offers a new, exclusive channel for advertisers, allowing them to reach customers through a device-based media network that they can't access on other platforms.
- Enhanced Measurement Capabilities: The integration of Vizio device data allows for improved measurement of customer activity, giving advertisers more accurate insights into their campaigns' performance.
- Opportunity to Compete with Larger Retail Media Networks: By offering unique inventory and better targeting, Walmart is positioning itself as a strong contender in the retail media space, competing with giants like Amazon and Google.
Cons:
- Uncertain Value of Vizio Placements: Although the addition of Vizio inventory is a promising move, the true value of these placements remains unclear. It's uncertain whether Walmart will price these ads at a premium, similar to how Amazon initially approached Prime Video inventory.
- Limited Publisher Control: While Vizio ads offer a new avenue for advertising, it is not a traditional publisher model. Unlike Prime Video, Walmart does not own content on Vizio devices, meaning the ad experience may be less integrated and potentially less impactful.
- Growing Pains for New Ad Formats: As Walmart experiments with these new ad formats and devices, there may be challenges in terms of optimizing ad performance and ensuring a smooth user experience for both advertisers and consumers.
💡 Tips:
- Evaluate the Value of Vizio Inventory: Keep an eye on performance metrics and test different strategies to assess the true value of these placements. Monitor cost vs. ROI to determine if it's worth investing in this new channel.
- Stay Agile with New Ad Formats: Adjust your strategy based on how well these innovations perform. Testing is key to understanding which formats and placements work best for your brand.
- Monitor Pricing Trends: With new inventory sources like Vizio, be prepared for potential initial premium pricing, but also watch for any adjustments that may make the platform more competitive in the future.
- Compare to Other Platforms: Compare the performance of Vizio placements and advanced targeting on Walmart Connect with other retail media networks, especially Amazon, to ensure you’re optimizing your ad spend across the best channels.
The Rise of Native Bid Boosters and Amazon’s Integration of AMC Audiences
Amazon is simplifying how advertisers interact with its audience targeting capabilities by integrating Amazon Marketing Cloud (AMC) audiences directly into its ad console.
This move introduces "native bid boosters," or off-the-shelf audience segments, which provide a user-friendly way for advertisers to optimize ad campaigns based on customer behavior.
These pre-configured, behavior-based audiences—such as "new to brand”—allow brands to apply audience segments to their sponsored product ads without the need for complex AMC data setup or custom audience creation.
This shift from keyword-based search campaigns to user behavior-based targeting marks a broader trend of making advanced advertising tools more accessible, even for those with limited experience in audience segmentation.
Pros:
- Easier Access to Advanced Targeting: By integrating AMC audiences into the ad console, Amazon allows advertisers to leverage sophisticated audience data without the technical complexity of AMC. This lowers the barrier to entry for smaller brands or advertisers who may not have the resources to build custom audiences.
- Behavior-Driven Targeting: These native bid boosters mark a shift from traditional keyword-based targeting to behavior-based targeting. As user behavior becomes a stronger indicator of intent, this enables more effective ad optimization, focusing on actions like past searches, purchases, and viewing history.
- Time and Resource Efficiency: Instead of building custom audiences, which can require significant time and expertise, advertisers can quickly apply pre-built audience segments to their campaigns. This saves time and simplifies the ad creation process.
- Increased Testing Opportunities: With easy access to these native audiences, advertisers can start testing different bidding strategies based on behavior data, allowing them to find the most effective approach for their products.
Cons:
- Limited Customization: The biggest limitation of the new native bid boosters is that advertisers cannot customize the audience parameters as they would with AMC's custom audiences. While this is a more accessible option, it may not be as effective for advertisers looking for highly specific, tailored targeting.
- Potential for Broader, Less Precise Audiences: Because these audiences are pre-configured by Amazon, there’s a risk that advertisers may be targeting too broad of an audience. Custom AMC audiences, on the other hand, offer the ability to fine-tune audience parameters, ensuring more precise targeting.
- Still Testing: As with any new feature, the value of these native bid boosters is still being evaluated. Early feedback suggests that custom AMC audiences are currently outperforming these native options, but as more advertisers test them, the results may improve.
💡 Tips:
- Leverage Native Audiences for Quick Wins: If you're new to AMC or need a fast way to test audience-based bid adjustments, these native bid boosters are a good place to start. Apply the pre-configured segments to your campaigns to see how they affect performance without needing to dive deep into custom audience creation.
- Test Custom AMC Audiences for More Precision: While the native bid boosters are a great tool for quick adjustments, if you have the capability to create custom AMC audiences, test those as well. Custom audiences allow for more granular targeting, which could yield better results for certain campaigns, especially if you have specific goals or product sets in mind.
- Monitor and Adjust Bids: With the introduction of behavior-driven targeting, focus less on traditional keyword search volume and more on customer actions (searches, purchases, views). Adjust your bids based on these behaviors to optimize ad spend.
- Stay Agile with Testing: Start testing different combinations of native and custom audiences to determine which offers the best return on investment for your brand.
- Prepare for Full AMC Integration: Keep an eye on future updates. The seamless integration of AMC features across all ad products could greatly expand your targeting options, so stay informed about new releases.
Tariff Impact and Pricing Strategies in Retail Media
The ongoing discussions around tariffs and their potential impact on retail prices have become a recurring topic in the e-commerce space, especially in relation to Amazon.
Tariff Impact on Retail Prices: While there have been some minor price adjustments due to tariffs, there has not yet been a widespread increase in prices on platforms like Amazon. This is despite concerns that tariffs will drive up costs for both sellers and consumers. Notably, there were rumors that Amazon might indicate if a price was impacted by tariffs, though this idea was quickly dismissed.
Seller Behavior and Careful Adjustments: Sellers on Amazon are approaching price adjustments with caution, likely due to Amazon’s competitive pricing policies and the difficulty of raising prices without triggering penalties (e.g., having a listing flagged or removed). Many sellers are strategically waiting and observing the situation before making any significant pricing changes, especially since they can rely on existing U.S. inventory in the short term.
The Complexity of the Tariff Situation: Although tariff impacts are still being felt, many brands and sellers are absorbing some of the increased costs to avoid drastic price hikes. The situation remains fluid, with expectations that if tariffs remain or increase, more dramatic price increases will occur in the future.
KEY INSIGHTS:
Amazon's Competitive Pricing Environment: Amazon has long reinforced competitive pricing as a key factor for success on its platform. It’s hard to raise prices significantly without impacting a product’s organic ranking, which makes price hikes a risky move for sellers. This built-in mechanism has slowed widespread price increases, even amidst tariff concerns.
Challenges in Supply Chains: For many brands, the challenge isn’t necessarily the origin of the product but the supply chain. Even products manufactured outside of China are often reliant on Chinese components or materials, meaning the supply chain disruptions have a significant impact on prices and availability.
WHAT TO EXPECT:
Impact Timing: We may see more significant price changes in July or August, with Prime Day serving as a pivotal moment. This timeline may vary depending on how the tariff situation evolves and which categories are most affected.
Category-Dependent Effects: The tariff impact will likely vary by product category, with certain sectors (e.g., electronics, games) more heavily affected due to their reliance on Chinese manufacturing. Brands that don’t source directly from China might still face challenges in terms of packaging and supply chain components.
💡TIPS:
- Monitor Tariff News Closely: Stay informed about tariff developments. Any significant changes in tariff policies could lead to more immediate price adjustments or supply chain disruptions.
- Prepare for Price Increases, But Tread Carefully: Raise prices cautiously, ensuring that the adjustments are in line with market expectations and Amazon’s pricing policies. Incremental changes might be a safer approach to avoid penalties while still responding to cost pressures.
- Leverage Existing Inventory: Use existing stock to mitigate the impact of rising tariffs in the short term. Plan inventory strategies accordingly to avoid disruptions when price increases or shortages become more pronounced.
- Focus on Supply Chain Resilience: Diversify supply chains and find alternative sources for key materials or components, particularly for brands whose products rely heavily on Chinese suppliers.
Restock Limits and Inventory Management Ahead of Prime Day
As Prime Day approaches, concerns about restock limits and potential supply chain challenges are rising. In particular, there are indications that Amazon may reintroduce restock limits, a measure previously used to manage inventory flow.
This could have significant implications for sellers, especially those heavily relying on Amazon's fulfillment network (AWD). Early signs suggest that these limits may even extend across sellers, where one seller's overstock could impact the ability of others to send inventory.
Pros:
- Incentive for Better Inventory Management: Restock limits can encourage sellers to keep inventory levels balanced, reducing the risk of overstocking and understocking.
- Optimized Fulfillment Centers: By controlling the flow of inventory, Amazon ensures its fulfillment centers are not overwhelmed, which could improve overall efficiency and reduce delays.
- Encourages Use of FBM and AWD: Sellers may consider switching to Fulfilled By Merchant (FBM) or Amazon Warehouse Distribution (AWD) as alternatives to traditional FBA, allowing flexibility during peak seasons.
Cons:
- Limited Inventory Flexibility: Cross-seller restock limits could create challenges for sellers who are indirectly impacted by others’ inventory management, particularly in competitive categories.
- Potential for Stockouts: Sellers with low IPI scores or poor inventory management could face stockouts and lose the Buy Box during high-demand periods like Prime Day.
- Complicated Planning for Sellers: Sellers will need to be proactive in managing their IPI scores, forecasting demand, and adjusting inventory levels to avoid penalties, which could lead to operational challenges.
💡Tips:
- Monitor Inventory Levels Regularly: Keep a close eye on inventory performance metrics like your IPI score to ensure you meet Amazon’s criteria for sending stock to fulfillment centers. Avoid letting your inventory performance fall below acceptable thresholds.
- Prepare a Backup Plan (FBM): Make sure you have a reliable Fulfilled By Merchant (FBM) strategy, including a strong third-party logistics (3PL) partner, in case you hit restock limits or experience stockouts with FBA.
- Diversify Fulfillment Strategies: Consider leveraging both FBA and FBM, and explore AWD for products eligible for this service to reduce dependence on Amazon’s fulfillment network during peak periods.
- Plan for Prime Day and Beyond: Start preparing inventory early for Prime Day by forecasting demand and ensuring you don’t face sudden restock issues. Stay flexible in adjusting strategies to meet any policy changes that arise.
Looking Ahead
These updates reflect significant shifts in retail media and marketplace dynamics, presenting both new opportunities and challenges for brands.
Adapting to new ad formats, leveraging behavioral data, and ensuring robust inventory planning will be crucial in navigating upcoming events like Prime Day.
As the landscape continues to evolve, brands that act swiftly and strategically will be best positioned to thrive in the face of change.
We’ll be closely tracking these developments as they unfold. Be sure to subscribe for the next update!
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