Agencies & Marketing — Why the Rush to AI and Retail Media Masks a Deeper Industry Identity Crisis

Agencies & Marketing · 2026-03-25

Today's developments reveal a fundamental restructuring of media and marketing dynamics across three critical fronts. First, the integration of retail media with connected TV through Walmart and Vizio's partnership signals the accelerating convergence of commerce and entertainment channels. Second, the significant reallocation of search budgets toward AI-optimized content represents a paradigm…

OPENING This week's flurry of industry moves reveals a fascinating identity crisis at the heart of modern marketing. As Walmart ties CTV to retail outcomes and marketers redirect search budgets toward AI-generated answers, we're witnessing not just tactical shifts but a fundamental rewiring of how brands connect with consumers.

The surge toward retail media networks and AI-powered search represents more than mere channel diversification – it's an admission that traditional marketing frameworks are crumbling. Walmart's partnership with Vizio isn't just another retail media play; it's an acknowledgment that the lines between commerce, content, and connectivity have permanently blurred. Meanwhile, the migration of search spending toward generative AI responses signals a profound shift in how brands must think about discovery and influence. The old playbook of optimizing for clicks and impressions is giving way to a more nuanced battle for presence in AI-generated narratives.

This evolution is creating fascinating tensions within the agency landscape. The appointment of specialized agencies for global influencer strategies, as seen in Unilever's recent move, highlights how traditional agency structures are struggling to adapt. The complexity of modern marketing demands both deep specialist expertise and broad strategic integration – a balance that many agencies haven't yet mastered.

The industry's response to these challenges has been telling. While some players are doubling down on technical capabilities – as evidenced by the increasing sophistication of CTV measurement and retail media integration – others are grappling with fundamental questions about agency models and media buying practices. The ongoing debate around principal-based media, highlighted in the Foster-WPP discussion, underscores the industry's struggle to align traditional business models with modern marketing demands.

WHAT TO WATCH The next month will be critical in understanding how these various threads interweave. Watch for more brands following Walmart's lead in building direct connections between media exposure and purchase behavior. The real story isn't just about retail media or AI adoption – it's about who can successfully integrate these elements while maintaining strategic clarity and client trust. Those who view these developments merely as technical challenges rather than indicators of a deeper industry transformation risk missing the bigger opportunity to reshape the marketing landscape.