Observed Signal · Feb 11, 2026 · Product & Technology Development · Source: AdExchanger · Impact: 3/5 · Sentiment: Positive
AI Revolutionizes Retail Media: Insights from Albertsons' Brian Monahan
At IAB ALM, Brian Monahan, SVP of Retail Media at Albertsons Media Collective, discussed how conversational and generative AI are changing product discovery and retail media. Albertsons is feeding product data into large language models, participating in early ad integrations for chat experiences, and has launched an in-app Ask AI experience in partnership with Google Gemini that recommends products shoppers can add to cart. Monahan emphasized measurement priorities — favoring incrementality and synthetic controls over basic ROAS — and urged industry standards via the IAB. He also described Albertsons’ sizable investment to build a modern in-store media network, describing retail media as a three-legged stool: offsite, onsite and in-store, and noting the importance of understanding shopper intent and household mission to drive performance.
Highlights how conversational AI, measurement (incrementality/synthetic controls) and large investments in in‑store media could materially change retail media productization and competitive differentiation among retailers.
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Key Takeaways & Evidence Grounding
- Brian Monahan is SVP of Retail Media at Albertsons Media Collective.
- Albertsons feeds product data into large language models and participates in ad alphas that place paid ads inside chat experiences.
- Albertsons launched an in‑app Ask AI experience in partnership with Google Gemini that recommends products shoppers can add to their cart.
- Albertsons operates 22 retail banners across America and is investing heavily to build a modern in‑store media network.
- Albertsons published a white paper noting at least 13 variables can cause ROAS for the same campaign to swing by about 30%; the company favors incremental ROAS and synthetic controls for trusted measurement.
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Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Albertsons: Conversational AI Raises Average Order Value
Albertsons reports measurable commercial benefits from conversational AI: standard conversational searches lift average order value (AOV) by 10% and recipe/dietary AI assistants lift AOV by 26%. The grocer attributes improved pre-order sales and stronger digital shopping experiences to AI investments, including a Safeway plugin inside ChatGPT. The article frames Albertsons as moving from experimentation to treating AI as a commercial strategy across digital experiences, merchandising, staff empowerment and supply-chain optimisation, and cites McKinsey findings that other retailers are seeing conversions and margin improvements from AI implementations.
Albertsons Conversational Search Ads Available via Criteo
Albertsons is making advertising inventory inside its Google-powered conversational search shopping assistant available to brands via Criteo. Advertisers can now buy placements that appear in product carousels within Albertsons’ conversational search experience, an activation the grocery chain hopes will capture brand budgets as AI-driven search adoption grows. Albertsons — which operates more than 2,200 U.S. stores and has 51.2 million loyalty members — launched shopping assistants last year in collaborations with OpenAI and Google. Jill Pavlovich, SVP of digital customer experience at Albertsons, framed conversational search as a highly personal place to connect brands and customers. The story was reported by Adweek on 2026-06-23.
AI Alters Discovery, Retail Media Strategies Evolve
Industry leaders at an ADWEEK House Cannes Lions panel co-hosted with Mirakl Ads discussed how AI 'answer engines' are changing discovery and where retail media fits in the marketing funnel. Panelists argued retail media remains valuable because it meets shoppers at point-of-purchase, but marketers must integrate retail media with search, social and emerging AI channels. Speakers highlighted expanded definitions of retail media and commerce media, the rise of non‑endemic brand buys, and experiential in-store activations (e.g., Best Buy’s 'stores within a store' for Meta Glasses). Lowe’s described using partner data to inform assortment and inspiration-to-action experiences, while brands like Unleashed invest in agency partnerships and training to adapt to faster AI adoption in search. The conversation framed retail media as an evolving journey that must be coordinated across multiple discovery touchpoints.
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