Retailers Capture Advertising Dollars From Media Firms
As retailers leverage proprietary loyalty data, traditional media businesses face intense new competition for ad budgets.
Updated on Oct. 16, 2026 in Advertising
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Global tech giants and major retailers are shifting their business models to monetize proprietary audience data rather than rely solely on traditional advertising spend. This transition is pressuring domestic media companies as retailers now leverage loyalty programs to capture marketing budgets directly from brands.
Why it matters
Retailers like Shoprite are transforming customer data into a high-margin media business, siphoning advertising revenue that once supported local publishers. This shift forces operators in the media sector to compete with entities that own both the storefront and the digital ad inventory.
Digital advertising reached R17.7 billion in South Africa in 2023, while Shoprite’s media revenue reached R593 million for the 26 weeks ending December 28, 2025. Major US tech firms saw their advertising-to-sales ratio drop to 5.5% in 2025 despite total revenue rising 73% since 2019.
The players
Shoprite
An African retail conglomerate that operates a wide network of grocery stores and is expanding into retail media services.
Alphabet
A multinational technology conglomerate that dominates global search and digital advertising markets.
Meta
A global social media company that generates the majority of its revenue through targeted advertising platforms.
Microsoft
A global technology company that provides software and cloud services while expanding its digital advertising footprint.
Netflix
A global streaming service provider that has entered the digital advertising market through ad-supported subscription tiers.
The details
Companies are increasingly using internal loyalty data and digital platforms to sell advertising opportunities directly at the point of purchase. By owning the full consumer journey, retailers bypass traditional broadcast and print publishers. This strategy effectively captures budgets that were previously allocated to third-party media, fundamentally altering the competitive landscape for advertising revenue.
Timeline
2019: Baseline year for corporate advertising-to-sales comparisons.
2023: South African internet advertising revenue hit R17.7 billion.
November 2025: Competition Commission report published on digital platform influence.
December 28, 2025: Shoprite media revenue reporting period concluded.
Market Landscape
The emergence of retail media networks mirrors findings from the November 2025 Competition Commission report on digital platform dominance. This trend signals a transition where audience ownership at the point of sale becomes the primary driver of advertising competition.
Operators in the media and retail space should evaluate their dependency on third-party ad revenue as retailers scale their own media units. Watch for how localized loyalty data continues to outperform broader digital ad targeting in conversion-heavy environments.
The takeaway
Retailers are effectively becoming publishers by monetizing their customer purchase behavior directly. Monitor the growth of retail media networks to determine if your current marketing spend remains effective or if it should pivot toward platforms with higher point-of-sale influence.
What happens next
Shoprite remains on track to surpass R1 billion in annual media revenue, a milestone worth tracking in upcoming fiscal reports.
Further reading
For more on industry shifts, explore our Advertising section.
Source note: This article includes information reported by Moneyweb.
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