Last week I shared some surprising new research: AI shopping agents are actively penalizing sponsored products, reducing the likelihood of them being selected by 8–14%. That sounds like a big red flag for retail media, right? But in today’s episode, I make the case that this 'ad penalty' is temporary, and far from the end of sponsored products.

We dig into why today’s AI models have inherited our own human ad skepticism, why that bias won’t last, and how the retail media ecosystem could adapt. From real-time basket bidding between retailers, to collaborative incentives from brands, to new revenue models around product content and reviews, I explore the paths forward that could actually make agentic commerce even more valuable for retailers, brands, and consumers alike.

This episode is sponsored by Connected Commerce at Acosta Group

Timeline

[00:15] – The surprising stat: AI agents penalize sponsored products by up to 14%
[01:00] – Why AI’s distrust of ads has been inherited from humans
[02:30] – Why ad avoidance won’t last (agents that miss good deals will frustrate users)
[02:58] – Scot Wingo’s vision for real-time retail bidding, and how brands could amplify offers
[05:00] – How AI could create a 'clean' monetization model without eroding consumer trust
[07:00] – Beyond ads: revenue opportunities in product content optimization and reviews
[09:50] – The big takeaway: don’t ditch sponsored products yet

Links & Resources

New research from Yale & Columbia, What Happens When AI Does Your Shopping?
Retail Media Breakfast Club article, What Is Your AI Agent Buying? [New Research]
Retail Media Breakfast Club article, Why Agentic Shopping Poses an Existential Threat to Retail Media (Part 1)
Retail Media Breakfast Club article, AI-Native Brands Will Be The New Amazon FBA Goldrush
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AI Agents Hate Ads Today — But Will That Last?

Retail Media Breakfast Club