Retail media is experiencing unprecedented growth, with industry giants like Amazon and Walmart at the forefront, capitalizing on their vast first-party data to create and deliver precise and highly targeted ad experiences. As new players like Instacart and Target charge on with innovative ad formats, and more retail media networks (RMNs) have entered the market, the retail media landscape has grown increasingly competitive. In this crowded market, success will depend on leveraging diverse media types and adopting robust performance metrics like attribution and ROAS to demonstrate value to advertisers.
With retail media ad spending projected to reach $178 billion by 2028, embracing advanced technologies and fostering transparency will be essential for building trust and optimizing consumer engagement across both online and offline channels. eMarketer’s recent "Commerce Media Trends to Watch in 2025" report sheds light on the challenges and opportunities ahead for RMNs. Below, we explore the top trends shaping the future of retail media in 2025.
The retail media space remains heavily concentrated, with Amazon and Walmart commanding over 84% of ad spend. Their unrivaled access to first-party data enables these giants to offer hyper-targeted advertising, establishing themselves as key partners for advertisers eager to connect with ready-to-buy consumers.
While major players dominate, the retail media ecosystem continues to expand with strong competition from companies like Instacart, eBay, Etsy, Kroger, and Target. These emerging leaders attract advertisers with innovative ad formats, large customer bases, and valuable loyalty program data. Digital innovations like Amazon’s video shelf unit and advanced targeting capabilities from Kroger and Target highlight the growing sophistication across the retail media market.
More companies are recognizing the immense value of leveraging both online and offline retail media to reach consumers at every stage of the shopping journey. By combining the precision of digital targeting with the impact of physical retail experiences, more and more businesses are creating holistic ad strategies that maximize engagement. The retail media landscape is evolving across three key formats:
By adopting a multi-channel approach, retailers can provide advertisers with more ways to connect with shoppers and drive conversions, whether online, offline, or both.
Proving ROI is vital. Performance metrics like attribution, incrementality, and return on ad spend (ROAS) have become cornerstones for retail media success. According to the "Retail Media Performance Optimization" eBook, 98% of retail marketers view robust attribution models as essential, underscoring the critical need for transparent and reliable performance reporting.
Advertisers are increasingly selective about their partners, prioritizing RMNs that deliver standardized, transparent performance metrics. Networks that excel in clear reporting will build stronger, more trusted relationships with advertisers.
Digital ad spending growth for Consumer Packaged Goods (CPG) brands is expected to slow to just 6.1% in 2025, signaling increased competition for these advertising budgets. To remain competitive, RMNs must refine their offerings and implement strategies that clearly demonstrate value to CPG advertisers, who will likely become more selective with their investments over time.
Retail media thrives on the use of first-party data, enabling personalized ads delivered at the point of purchase. This not only enhances conversion rates but also provides retailers with greater control over their advertising ecosystem.
Retailers have multiple paths to establish robust ad platforms:
The next wave of retail media growth will be fueled by AI, automation, and omnichannel strategies. These innovations promise to deepen engagement and streamline the customer journey across platforms and devices.
To thrive in 2025’s dynamic retail media landscape, staying informed of emerging trends and technologies is imperative. By prioritizing innovation, transparency, and robust performance metrics, retailers and advertisers can secure a competitive edge. Embracing these strategies will unlock new growth opportunities, ensuring long-term success in this fast-evolving industry.
