Retail media is one of the UK’s fastest-growing channels. Is it right for you?

Retail media grew 17.9% in Q1 2026. For brands that sell through retailers, it’s powerful. For everyone else, the lessons still apply.

By Adam Reynolds, Founder3 min readMedia
Abstract Kyndra Studios artwork in orange on black for the article “Retail media is one of the UK’s fastest-growing channels. Is it right for you?”

Retail media, the ads you buy on retailers’ own websites, apps and in-store screens, grew 17.9% year on year in Q1 2026, one of the fastest rates of any UK channel, according to the Advertising Association and WARC [1].

Why it’s growing

  • Close to purchase. Ads appear where people are already shopping.

  • First-party data. Retailers know what their customers actually buy.

  • Closed-loop measurement. You can often see the sales an ad produced.

When it makes sense

  • You sell through one or more big retailers or marketplaces.

  • You have products with clear search demand, like a category people browse or search for.

  • You can fund it on top of, not instead of, brand-building.

Watch-outs

  • It mostly captures existing demand; it creates less new demand.

  • Each retailer’s platform and data are different, which makes comparisons hard.

  • Costs rise as more brands compete in the same aisles.

If you don’t sell through retailers, the principle still applies: meet customers where they already decide, and measure against real sales.

Sources

  1. UK advertising investment rises 9.3% to £11.7bn in Q1 2026, Advertising Association (July 2026)

  2. UK Advertising Spend, Advertising Association

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