Behind the Numbers: Retail Media and Social are Changing Search Marketing

Podcast Title: Behind the Numbers: an EMARKETER Podcast
Host: Rahul Chada
Guests: Sarah Marzano (Principal Analyst, Retail and Commerce Media, New York City) and Max Willins (Senior Analyst, Advertising and Media, Philadelphia)
Release Date: July 25, 2025

Introduction

In the July 25, 2025 episode of Behind the Numbers, hosted by Rahul Chada, EMARKETER delves into the evolving landscape of search marketing. Joined by industry experts Sarah Marzano and Max Willins, the discussion centers on how retail media and social platforms are reshaping traditional search advertising. The episode begins with a light-hearted segment on national favorability ratings before transitioning into the core topic.

Retail Media vs. Traditional Search Marketing

Rahul opens the conversation by presenting a compelling fact: retail media search spending is projected to exceed $38 billion in the current year, according to EMARKETER's estimates. However, this figure remains significantly lower than the approximately $100 billion allocated to non-retail media search ads.

Rahul Chada [03:49]: "Retail media's share of search ad spending is going to top out at 30%. It's going to go up from around 26% this year to 30%, but still, you know, comparatively small."

Max concurs, suggesting that retail media is more of a complement than a replacement for traditional search advertising.

Max Willins [04:45]: "Retail media is complementing traditional search. While its share is increasing, traditional platforms like Google still dominate the majority of search ad spending."

Growth and Fragmentation in Search Advertising

Sarah adds depth to the conversation by highlighting that the overall search advertising market is expanding, making it a non-zero-sum game. This growth means that the rise of retail media doesn't necessarily come at the expense of traditional search platforms.

Sarah Marzano [05:35]: "Traditional search is still forecasting growth every year. For consumers, fragmentation feels like convenience, allowing them to search for products wherever they are."

Role of Retail Media Networks (RMNs)

The discussion shifts to the dominance of Amazon in the retail media space. Despite Amazon's substantial share, forecasts indicate a gradual decline in its dominance as competitors like Walmart and other RMNs gain traction.

Rahul Chada [09:13]: "Amazon will hoover up at least 80% of US retail media search ad spending each year until at least 2027, but its share is set to shrink as Walmart and other RMNs grow."

Max explains that Amazon's vast on-site scale is a significant factor in its dominance, but as other RMNs enhance their features and capabilities, the landscape may become more competitive.

Max Willins [10:01]: "If retailers attached to RMNs grow their on-site scale, budget reallocations will follow, allowing other RMNs to capture a larger share of search ad spending."

Sarah emphasizes the potential for long-tail RMNs to catch up, provided that advertising processes become more efficient across multiple networks.

Sarah Marzano [11:30]: "RMNs are struggling to make it easy for advertisers to buy across networks. As feature parity improves, spreading ad spend across more RMNs becomes more feasible."

Social Media's Impact on Search Marketing

The conversation progresses to the rising importance of social media platforms in search behavior. With platforms like YouTube, TikTok, and Instagram being used by over 50% of Gen Z respondents for product searches, social media is becoming a significant player in the search advertising arena.

Rahul Chada [13:55]: "In our survey, four out of the top ten platforms for product searches were social platforms, a trend especially strong among younger users."

Sarah points out that while consumers appreciate the convenience, advertisers face challenges due to the fragmented search landscape across these platforms.

Sarah Marzano [16:53]: "Social platforms have shied away from high-intent search behaviors, but there's compelling reason for cross-vertical activations, especially for products like beauty items that benefit from impulsive purchases."

Max notes that social media search ad functionalities are still rudimentary compared to dedicated search engines and retail media networks, but there's potential for growth as platforms evolve.

Max Willins [15:35]: "Social platforms might scale up their search ad offerings over the next few years if they see value in enhancing these features."

AI's Disruption of Search Advertising

AI emergence is another critical topic discussed. EMARKETER projects AI search ad spending in the US to surge from $1 billion this year to $26 billion by 2029. However, the rise of AI shopping agents poses questions about the future of paid search advertising.

Rahul Chada [19:02]: "We project AI search ad spending will skyrocket to $26 billion by 2029, but AI agents could potentially sidestep traditional search ads."

Max offers a balanced view, acknowledging the potential disruption but noting that AI shopping is still in its infancy and unlikely to render paid search obsolete in the near term.

Max Willins [20:39]: "GenAI is still nascent, and even if AI agents start incorporating sponsored listings, it won't match the scale of traditional search engine result pages."

Sarah sees AI as another channel for retailers and advertisers to navigate, emphasizing the need for adaptation rather than obsolescence.

Sarah Marzano [22:44]: "AI represents another surface for consumers to research and consider purchases. Retail media networks will need to integrate these evolving channels into their strategies."

Conclusion

The episode wraps up with a consensus that search advertising is becoming increasingly complex due to the interplay of retail media, social platforms, and AI technologies. Marketers must navigate a fragmented landscape, balancing traditional search investments with emerging opportunities in retail and social media.

Rahul Chada [23:08]: "The strategies for search advertising are getting increasingly complicated. Thank you, Sarah and Max, for your invaluable insights."

Listeners are encouraged to subscribe and stay tuned for future episodes that continue to explore the dynamic world of digital marketing.

Notable Quotes:

• Max Willins [04:45]: "Retail media is complementing traditional search. While its share is increasing, traditional platforms like Google still dominate the majority of search ad spending."

• Sarah Marzano [05:35]: "For consumers, fragmentation feels like convenience, allowing them to search for products wherever they are."

• Rahul Chada [09:13]: "Amazon will hoover up at least 80% of US retail media search ad spending each year until at least 2027, but its share is set to shrink as Walmart and other RMNs grow."

• Sarah Marzano [11:30]: "As feature parity improves, spreading ad spend across more RMNs becomes more feasible."

• Max Willins [15:35]: "Social platforms might scale up their search ad offerings over the next few years if they see value in enhancing these features."

• Max Willins [20:39]: "GenAI is still nascent, and even if AI agents start incorporating sponsored listings, it won't match the scale of traditional search engine result pages."

• Sarah Marzano [22:44]: "AI represents another surface for consumers to research and consider purchases. Retail media networks will need to integrate these evolving channels into their strategies."

This comprehensive discussion highlights the multifaceted changes in search marketing driven by retail media growth, the strategic incorporation of social platforms, and the prospective impact of AI advancements. Marketers are urged to stay agile and informed to navigate this rapidly evolving digital landscape effectively.