Google expands retail media play, partners Flipkart and Shopee to boost AI-powered commerce ads

Google doubles down on retail media, bringing AI-powered commerce tools to brands and retailers across Search, YouTube, and Display. Google is positioning itself as a critical player in the booming retail media sector.

By  Storyboard18| Jul 22, 2025 9:37 AM

Google is making a deeper play for the fast-growing retail media market, rolling out new tools that promise to connect brands and retailers with sharper targeting and greater transparency, while leaning heavily on the tech giant’s artificial intelligence capabilities.

The company announced that its Commerce Media suite, now available in beta, will extend across Search Ads 360, Display & Video 360 and Google Ads, offering what it describes as “expanded reach and Google AI-driven performance” for advertisers looking to tap into the booming retail media sector.

Retail media — where retailers use their digital properties to sell ad space to brands — has become one of the fastest-growing segments in advertising. Google, with its reach across YouTube, Search and Display, is now positioning itself as the connective tissue between retailers and brands seeking to capture shoppers across the web.

One of the marquee developments is a partnership with Roundel, US-based Target’s retail media arm, which will now allow advertisers to measure online, app and offline sales data within Performance Max campaigns through Search Ads 360. This move, Google says, will allow brands to better assess how digital ads translate into actual purchases, whether they happen online or in physical stores.

Beyond Performance Max, Google is expanding measurement capabilities to Search, Shopping and Demand Gen campaigns within Google Ads, offering brands a broader view of their media investments.

Google also announced improved self-service options for major marketplaces, including Shopee, Rakuten and Flipkart, enabling these platforms to share product catalogs directly with brands for advertising, a move that could streamline collaboration between e-commerce players and advertisers in markets like India and Southeast Asia.

In a notable expansion, Google is bringing retail media to YouTube through Display & Video 360, giving brands additional reach for commerce-focused campaigns on one of the world’s largest video platforms. The company also revealed that it is piloting product-level measurement tools, which would allow brands and retailers to analyze the effectiveness of their ad spend against specific product and category sales data.

For Google, the push into retail media comes as advertisers seek new ways to reach consumers amid shifting privacy rules and changing online behaviors. By offering integrated measurement and targeting capabilities powered by AI, Google is aiming to become a critical partner for brands and retailers navigating the complex world of commerce media.

First Published onJul 22, 2025 9:37 AM

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