The New Battleground for Retail: Ads Marketplaces

they’re selling visibility

The rise of retail media networks from players like Amazon, Walmart, Target, and Google represents one of the fastest-growing segments in digital advertising. But behind the billions in ad spend is a deeper challenge: designing platforms that deliver advertiser precision without compromising the shopper experience–​​and doing so in a way that’s validated by real user needs and behavior.

Retail ads marketplaces must offer advertisers flexibility and opportunity while preserving intuitive, frictionless shopping journeys for consumers. That’s a product design challenge, not just a media planning one.

for Thoughtful Design

The stakes are high. According to eMarketer, retail media spending is climbing, projected to reach more than $109 billion by 2027. Amazon alone is expected to generate over $60 billion in retail media ad revenue in 2025. 

These staggering numbers underscore the immense revenue potential for retailers. But unlocking that potential requires more than just infrastructure—it requires insight. Retailers must deeply understand how advertisers interact with campaign tools, how shoppers perceive and engage with ad placements, and how to align both sides through intuitive, data-backed design.

That’s where UX research delivers its value: uncovering friction points before they turn into lost revenue, and validating new product ideas before they go live. But the most successful retail media ecosystems won’t be the ones with the most inventory—they’ll be the ones that design experiences advertisers trust and shoppers embrace.

Retail ad marketplaces serve two sets of users simultaneously: brands who want visibility and shoppers who want speed, relevance, and ease. The platforms that succeed will resolve this tension through thoughtful design systems. Here’s how we’re thinking about building them strategically.

The most powerful ad experiences don’t stand out, they suggest, by fitting seamlessly into the existing interface. They feel native to the platform and support the user journey rather than distract from it.

To achieve this:

• Design ads to match the look and feel of organic content.
  Fonts, button styles, layout, and tone should mirror native product listings or category pages. However, always ensure they’re clearly labeled as ads to avoid losing user trust.
  
  
• Align ad placements with natural shopper intent.
  Consider where in the funnel users are likely to welcome recommendations: search results, category exploration, product detail pages, or even in-cart suggestions.
  
  
• Avoid ad fatigue.
  Thoughtful pacing and frequency caps prevent experiences from feeling cluttered or pushy.

Example: Amazon’s Sponsored Products succeed because they appear directly in line with search results -- they’re relevant to what the shopper is searching for and don’t interrupt the flow. But at the same time, they’re transparent. Shoppers can clearly see it’s an ad, and don’t feel like they’re being fooled, which builds trust. The relevance, placement, and transparency all build a positive experience.

For newer retail platforms, a key takeaway is this: ads should be additive, not disruptive. The moment shoppers feel like their experience is compromised, both trust and conversion potential start to decline.

2. Empower Advertisers with Transparent Tools

Research helps teams understand advertiser goals, skill levels, and pain points—informing everything from dashboard structure to terminology to help content. For example, conducting usability studies can reveal where people struggle to interpret performance metrics or configure campaigns. It’s important to include both SMBs who wear many hats and aren’t focused on advertising 100% of the time, as well as large companies and agencies that have teams of people solely focused on ads. This helps you build tools that speak to a range of advertisers.

Advertisers want to know how to reach their intended target most effectively, while being able to accurately measure their ROI and success. To build advertiser confidence and grow revenue:

• Provide clear, customizable campaign setup flows.
  Advertisers should be able to define objectives and receive UI recommendations tailored to those goals.
  
  
• Make performance data accurate and actionable.
  Dashboards should show real-time metrics (impressions, clicks, sales lift) in a digestible format—think charts, callouts, and benchmarks. The data also must be accurate. Some platforms have issues with latency and data cleaning that lead to data discrepancies, which can be frustrating and problematic.
  
  
• Offer simulation and forecasting tools.
  Features like “estimated reach” or “projected sales lift” help brands plan with confidence.
  
  
• Build transparency into pricing.
  Whether your platform uses a CPM, CPC, or hybrid model, advertisers need clarity on what they’re paying and what they’re getting in return.

Transparency isn't just a feature—it’s a retention strategy.

3. Leverage First-Party Data Responsibly

Retailers have something the open web doesn’t: high-intent, authenticated user behavior tied to actual transactions. This data is a goldmine for advertisers, but it must be handled with care.

To responsibly unlock the value of first-party data:

• Design targeting tools that align with shopper behaviors, not just demographics.
  For example, offer segments based on recent search activity, category browsing, or purchase frequency.
  
  
• Build intuitive guardrails for data privacy.
  Make it clear what types of data are being used, and how. Give brands control over which shopper segments they want to engage—without exposing personal information.
  
  
• Ensure regulatory compliance by design.
  Platforms must embed privacy compliance (GDPR, CCPA, etc.) into the ad-buying experience, not layer it on after the fact. Research can help teams evaluate if their privacy messaging builds confidence or raises questions, and ensure consent flows are understandable, not performative. 

Example: Instacart utilizes its rich first-party data to deliver personalized advertising experiences while maintaining user privacy. By anonymizing data and allowing users to opt-out, Instacart ensures that ads are relevant without compromising consumer trust and privacy.

4. Foster Collaborative Systems

Retail ad platforms don’t exist in a vacuum. The most successful ones are those that embrace interconnectedness—working with agencies, ad tech partners, and brand teams to co-create value for their customers.

To build a thriving ecosystem:

• Enable clean integrations with third-party tools.
  Brands often manage media through separate platforms—support these workflows via APIs, data exports, or embedded insights.
  
  
• Involve brand partners in product development.
  Co-create features with your customers through early access programs, beta testing, and feedback loops that shape the roadmap. UX research is essential to creating tools that fit seamlessly into brand workflows. Whether through co-creation workshops, participatory design, or sessions with media teams, research helps prioritize the right integrations and services.
  
  
• Offer tiers of support and training.
  Not every brand has an in-house media expert. From intuitive help centers to white-glove onboarding for top partners, scalable support builds loyalty.

Example: Walmart Connect has been actively expanding its strategic partnerships to enhance its retail media network. This includes collaborations with creative agencies, technology providers, and media companies to offer advertisers a comprehensive suite of tools and services.

Collaboration also boosts platform agility. When you know what your partners need, you can build faster, better, and with confidence.

Retail media networks move fast—but speed without insight can be expensive. UX research ensures that platforms are solving the right problems, for the right users, with the right experience. Whether you’re launching a new ad format or refining a campaign setup flow, research helps reduce guesswork and increase adoption.

It’s not just about validating ideas—it’s about elevating performance through deeper understanding. When platforms prioritize research, they build more than just tools—they build trust, which fuels long-term revenue growth in this space.

A successful retail ad marketplace is a system of trust. Trust between the platform and advertisers, between ads and shoppers, and between brands and the data that powers them.