Shoppable Video in 2026: Retail Media's $70 Billion Full-Funnel Shift

Shoppable video is a form of interactive video advertising that allows viewers to click on products embedded within the video and complete a purchase without leaving the viewing experience. In 2026, this format is no longer a novelty but a core driver of retail media growth, with ad spend projected to exceed $70 billion. The key change is that platforms like Amazon and Walmart are integrating shoppable video directly into their retail media networks, enabling brands to reach consumers at the very moment of purchase intent.

What Is Shoppable Video and Why Is It Growing?

Shoppable video eliminates the friction between product discovery and checkout by embedding clickable product tags, carousels, and "add to cart" buttons directly inside video content. This format is experiencing explosive growth in retail media because it combines the emotional engagement of video with the immediacy of e-commerce. According to a recent analysis, retail media shoppable video is projected to exceed $70 billion in 2026, signaling a full-funnel shift as brands move beyond traditional top-of-funnel awareness ads toward measurable lower-funnel conversions. Shoppable video in retail media signals full-funnel shift

The $70 Billion Milestone: Full-Funnel Shift in Retail Media

The $70 billion projection represents a significant leap from previous years, underscoring how retailers are transforming their ad businesses into full-funnel media networks. Historically, retail media focused on sponsored product listings and display ads, which primarily captured demand at the bottom of the funnel. Shoppable video, however, allows advertisers to build brand affinity at the top while driving direct purchases at the bottom—all within a single format. This full-funnel capability is what makes shoppable video attractive to both brand marketers and performance advertisers. The same source notes that platforms like Walmart Connect and Amazon are integrating interactive video directly into the shopping experience, enabling seamless transitions from content to commerce. Read more about the full-funnel shift

Amazon and Walmart’s Shoppable Video Playbook

Amazon and Walmart have launched interactive video ad functionalities that allow brands to create shoppable hot spots, product carousels overlaying video, and "add to cart" buttons that trigger without interrupting playback. These features are still evolving, with standardized specs yet to solidify across the industry. A detailed playbook from Influencers Time examines how both retailers are approaching the format. Amazon & Walmart playbook for shoppable video

Feature	Amazon	Walmart Connect
In-video product carousel	Yes, via Amazon Ads creative tools	Yes, in beta for select advertisers
Shoppable hot spots	Yes, clickable regions on video	Yes, via interactive overlay
"Add to cart" overlay	Yes, with one-click purchase	Yes, with cart integration
Measurement	Amazon Attribution, Brand Metrics	Walmart Luminate, closed-loop reporting
Self-serve platform	Amazon Advertising Console	Walmart Ad Center (self-serve)

Key Differences

Amazon’s shoppable video is deeply integrated with its vast first-party data and fulfillment network, making it easier to attribute sales. Walmart Connect, on the other hand, leverages its omnichannel footprint—both online and in-store—to offer unique measurement capabilities. For brands, choosing between the two often depends on target audience and data priorities. The playbook details these distinctions

How Interactive Video Transforms the Shopping Experience

Interactive video transforms passive viewing into an active shopping journey. Instead of watching a product demo and then navigating elsewhere to find the product, viewers can tap a shoe featured in a video to see its price, add it to their cart, and even check out—all without leaving the video player. This reduces drop-off and increases conversion rates. Early adopters report that shoppable video ads see click-through rates 3-5 times higher than standard pre-roll ads, although specific benchmarks vary by category. The full-funnel approach means that even if a viewer doesn’t click immediately, the brand impression is stronger, leading to later searches and purchases. Shoppable video as a full-funnel tool

What This Means for Brands and Advertisers

For brands, shoppable video offers a direct line to purchase intent. Instead of relying on vague metrics like views or impressions, advertisers can track precise actions: product clicks, cart adds, and purchases. This shift is forcing a rethink of attribution models. Retail media networks provide closed-loop reporting, meaning a brand knows exactly which video drove which sale. However, the interactive nature also demands higher creative standards. A 30-second spot must now not only entertain but also present products in a clickable, shoppable format. Brands that invest in creating high-quality, interactive video content are likely to outpace those that simply repurpose traditional TV spots. The Amazon & Walmart playbook offers guidance on creative best practices

Challenges and the Road Ahead

Despite rapid growth, shoppable video faces challenges. Standardization of ad units and measurement across different retailers is still lacking. What works on Amazon may not be directly transferable to Walmart Connect or other networks like Instacart. Additionally, privacy regulations and the phase-out of third-party cookies are pushing retailers to rely more on first-party data—something in which Amazon and Walmart are well-positioned but smaller retailers may struggle. Consumer adoption also takes time; not all viewers are comfortable clicking on video ads, especially on mobile devices where accidental taps are common. Nevertheless, the trajectory is clear: shoppable video is becoming a must-have for retail media strategies. As the format matures, expect deeper integration with live shopping, user-generated content, and AI-powered personalization. The $70 billion milestone is just the beginning. Explore the full analysis and the playbook