Retail Media in Mexico totals US$1.9 Billion with a 9.6% CAGR

Retail media is transitioning from a secondary advertising channel to a core strategic priority within the retail sector, demonstrating strong momentum in Mexico. According to Webloyalty, retail media activity in Mexico during 2024 totaled US$1.955 billion. The segment is expected to grow at a Compound Annual Growth Rate (CAGR) of 9.6% between 2025 and 2030.

For retailers, this model generates an exponential revenue stream with high margins, while for brands, it provides direct access to first-hand data on the entire consumer journey, allowing results to be measured through the final purchase.

Mexico, along with Brazil, accounts for 81% of the retail media investment across the region, spurred by the expansion of e-commerce and the digitalization of major retail chains. While the US market already exceeds US$55 billion in retail media, investment in Latin America is projected to triple by 2028, potentially reaching over US$5.45 billion.

Implementation Challenges and Technology Solutions

Experts from EPAM Systems Inc. have identified several key challenges in implementing retail media:

• Budget Allocation: Understanding how brands allocate budgets and how retailers can secure incremental spending.

• Fragmentation: Technical and data fragmentation, coupled with the need to quickly adapt internal processes to compete at high speed.

• Lack of Standardization: Insufficient standardization in measurement and reporting complicates operations, making manual data management costly and inefficient.

EPAM Systems emphasizes that Artificial Intelligence (AI) is key to overcoming these bottlenecks by building predictive audiences, forecasting campaign results, automating real-time optimization, and demonstrating immediate impact. The company reports that by automating data management, it is possible to increase revenue by 20%, double campaign performance, and reduce costs and time by 40%.

Redesigning for Profitability

Specialists agree that successful retail media implementation requires an integral redesign of processes, not merely opening an advertising sales channel. Three fundamental pillars are essential for capitalizing on retail media potential, according to Webloyalty. Success relies on clear and consistent information. Consolidating sales, inventory, and audience data into a single "source of truth" is necessary to guarantee precise and measurable campaigns.

Unifying workflows and leveraging automation is necessary to reduce costs and accelerate response capability, particularly as e-commerce speed demands operating campaigns without weeks of delay.

Retail media requires the strategic alignment of the entire organization, including finance, marketing, operations, technology, and management. Successful projects establish internal governance to secure resources, set clear metrics, and ensure continuous follow-up.