Retail media is evolving from clicks and carts to conversations and context.
As generative and conversational AI reshape how people discover products across the answer ecosystem, retail media leaders are facing new challenges — and new opportunities.
They sit at a rare intersection. They have first-party data, frequent customer relationships, and real-world transactions. The question isn’t whether retail media will keep growing. It’s how it evolves without losing performance, trust, or relevance.
Albertsons is investing heavily in in-store media as the next phase of re-architecting the entire grocery journey. That investment reflects a broader shift in how retailers are thinking about discovery, measurement, and performance from the couch to the checkout.
At IAB ALM, I sat down with Brian Monahan, SVP of Retail Media at Albertsons Media Collective, to discuss why conversational AI makes sense for retail media, why incrementality and common standards are critical to trusted measurement, and why building a modern in-store media network is “not for the faint of heart.”
Below is an edited Q&A based on that conversation.
AdExchanger: Brian, everyone at ALM is talking about AI. How are you seeing conversational AI change how CPG brands show up in the grocery journey — and what does that mean for discovery and conversion inside retail media?
Brian Monahan: We’re seeing conversational AI impact the grocery journey in three main ways.
First, we make sure our data — including product data — is fed into large language models and chat experiences organically, so our assortment appears accurately in those environments.
Second, we’re actively participating in new ad alphas that allow paid advertising to appear inside those chat experiences.
And third is our own conversational AI experience. Inside our app, we still have classic search, but we’ve also launched Ask AI in partnership with Google Gemini. A shopper can ask something like, “I have a kid’s birthday party this weekend — what should I serve?” and get recommendations that include actual products they can add to their cart.
What’s interesting is that the results so far have been really positive. We’re seeing larger baskets, longer engagement, and good satisfaction.
There’s been concern that conversational AI would compress all media into a single chat stream and threaten retail media surfaces. So far, that hasn’t happened.
Measurement is another hot topic. When it comes to ROAS and incrementality, what should the industry prioritize to make retail media more consistent and more trusted?
Retail media is unique because it’s the only media transaction in which the buyer and seller share the same objective: real sales growth.
At Albertsons, we talk about collective growth — growth for the advertiser, our merchants, and the end customer. Incremental ROAS is a much better lens than basic ROAS, because standard ROAS doesn’t tell you what actually changed because of advertising.
True incrementality requires test-and-control. That’s why we’re excited about synthetic controls — they allow you to get there faster and more cost-effectively.
Do you see the IAB playing a role in helping standardize this?
Absolutely. First, retail media needs to be easier to do business with. Standards matter. They remove friction.
Second, we need to grade our homework consistently. Albertsons published a white paper showing that even something as simple as ROAS can vary wildly. There are at least 13 variables — attribution windows, UPC inclusion, and more — and those differences can swing ROAS by 30% for the same campaign.
If we’re moving toward incrementality and advanced methodologies like synthetic controls, standards become even more important. The IAB has a strong track record here, including in commerce media.
What’s actually moving the needle for CPGs right now? Is it format, data, onsite versus offsite — where are you seeing real momentum?
Data is the biggest driver today — particularly historical purchase data. But shame on us if that’s all retail media becomes.
At Albertsons, we operate 22 retail banners across America, many of them more than 100 years old. That means different stores serve different trip missions. We’re not just supporting weekly stock-up trips — we’re serving pharmacy visits, floral occasions, pet needs, and sick-day runs.
The real opportunity is understanding why someone is shopping, not just what they bought before. When you unlock that intent and layer in creative and storytelling — recognizing, for example, that a family has shopped at the same banner for generations — performance changes.
That’s how you move beyond retargeting into something more meaningful. Households have time-bound needs. Patterns matter, but moments matter more.
When you can detect that a household is on a specific mission — and help them complete it — that’s where the next performance lift comes from. We’re just scratching the surface there.
Retail media is already a major growth driver. Looking ahead to 2026, what are your top priorities — both for the market and for Albertsons?
Our biggest priority is building out our in-store media network. We see retail media as a three-legged stool: offsite, onsite, and in-store.
In-store media itself isn’t new — signage and radio have been around forever — but what’s new is modern ad serving, content management, beacons, and the ability to measure effectiveness and connect that signal across the entire funnel.
Building a modern in-store network is not easy. It involves rewiring stores, upgrading infrastructure, and long-term commitment.
That investment will separate retailers who are lightly experimenting with retail media from those who are fully committed.
That distinction feels important, especially as more companies rush to launch retail media networks.
You have to be in retail media to compete, but the shakeout will come from performance.
Performance depends on deep household data, frequent customer relationships, broad SKU coverage, and differentiated surfaces like in-store media that actually help shoppers.
Those factors, together, will determine which networks deliver meaningful outcomes at scale and which ones are just the next iteration of shopper marketing.
