Retail media is rapidly emerging as a key driver of digital commerce in Mexico and Latin America, fueled by e-commerce growth, and demand for first-party data. Once a secondary advertising channel, it is now a strategic focus for retailers and brands seeking new revenue streams and measurable customer engagement.
According to Webloyalty, retail media in Mexico generated US$1.95 billion in 2024 and is expected to grow at a 9.6% compound annual rate through 2030. Alongside Brazil, Mexico represents 81% of regional investment. Globally, the United States leads with more than US$55 billion, in retail media spend, while Latin American investment is expected to triple to over US$5.4 billion by 2028.
Retail media enables retailers to monetize websites, apps, and marketplaces by offering targeted advertising at the point of purchase. For brands, it provides direct insight into the shopper journey, while delivering high-margin revenue opportunities for retailers.
However, growth faces challenges in budget allocation, fragmented technology, and inconsistent data measurement. EPAM Systems highlights artificial intelligence (AI) as a critical enabler, offering predictive audience modeling, real-time optimization, and automation. Retailers implementing AI for data management can boost revenue by up to 20%, double ad performance, and reduce operational costs by up to 40%.
Effective implementation requires three priorities: consolidating data from sales, inventory, and audience systems; streamlining workflows across marketing, technology, and commercial teams; and fostering company-wide collaboration. Aligning financial, operational, marketing, and IT functions under a unified strategy ensures governance, metrics, and performance tracking.
