Retail Media on OTT Platforms Projected for Significant Growth

Retail Media in OTT Market Poised for Substantial Expansion

The market for retail media within Over-The-Top (OTT) streaming services is expected to grow from USD 10.82 billion in 2026 to USD 19.61 billion by 2031, driven by a compound annual growth rate (CAGR) of 12.63%. This expansion is attributed to retailers competing not only for digital shelf visibility but also for premium streaming inventory that can be linked to purchase behavior.

The sector is being shaped by the use of first-party transaction data. This allows for a more effective connection between streaming ad exposure and measurable shopping outcomes compared to traditional television advertising models. The rise of shoppable video, off-site activations, and AI-driven personalization are also key factors accelerating market growth, influencing how advertisers price, plan, and optimize their streaming campaigns.

Retailer-owned networks continue to hold a dominant position, controlling crucial elements like shopper data, audience creation, and reporting within integrated systems. However, streaming platforms and ad-tech firms are actively developing more open alternatives. Challenges such as measurement fragmentation, increasing privacy regulations, and slower budget growth from major advertiser groups are expected to foster partnerships, necessitate scalable infrastructure, and potentially lead to industry consolidation.

In 2025, video ads represented the largest advertising format segment, accounting for 55.26% of the market. Retailer-owned networks held a 58.91% share in platform types, though third-party networks are projected for the fastest growth. Smart TVs captured 42.56% of the device market, with smartphones and tablets expected to see the highest CAGR. North America was the largest geographic market in 2025, but the Asia-Pacific region is anticipated to experience the most significant growth.