Over the last year, the RMN space saw new in-store standards and solid growth. This is likely to continue. Here are a few ways we expect to see this dynamic space continue to mature.
Growing in-store networks
“While retail media networks have gained some attention [in 2024], I believe their full potential remains largely untapped,” said Melanie Babcock, Vice President, Orange Apron Media and monetization at The Home Depot.
Orange Apron Media, Home Depot’s RMN, launched a self-service platform for advertisers last October called Orange Access. Improving this experience, especially for non-endemic brands, will continue to be a priority for 2025. Home Depot hosted its first-ever “InFronts” advertiser event last year.
“In-store networks continue to be a hot trend, but are still very much in development for most retail media networks,” Babcock said. “The store represents significant reach and opportunity to introduce ads at the point of customer purchase decision. They are often overlooked because in-store networks are unique to each retailer and dependent on store environments.”
AI powering connected RMN experiences
The goal of successful RMNs is to improve the shopping experience for customers. If it doesn’t, the ads will alienate customers. So, in many ways, RMNs are leading the charge in bringing together different online and in-store channels. This unified experience helps customers get service whether they’re on mobile, in-store or viewing ads on TV. In 2025, look for AI to help automate the processes and workflows behind these experiences.
“The implementation of interconnected shopping experiences has transformed customer expectations — they want more personalized experiences, diverse delivery options, and simple returns,” said Babcock. “As we look ahead, AI will further enhance this interconnected experience by making project planning and home management significantly easier to initiate and accomplish, which will in turn transform the retail industry by raising the bar for customer experience and operational efficiency.”
Dig deeper: Retail media networks: What you need to know
Hybrid retail media programs
As more retailers plan to start and improve media programs in 2025, many will want hybrid models. These models mix in-house technology with third-party solutions.
“Rather than overburdening IT teams with full platform builds, retailers will adopt frameworks that support custom program design while leveraging existing infrastructure,” said Aran Hamilton, CEO of RMN orchestration technology company Vantage. “This approach will enable faster launches, scalable growth, and strategic control, resulting in accelerated adoption and innovation across the industry.”
Non-retail media networks surge
As the RMN space matures and it becomes easier for brands to launch RMNs, more non-retail brands will get in on the act. Terms like “commerce media” and “connected commerce” will gain wider acceptance to include these non-retail brands.
“In 2025, we can expect a surge in non-retail companies leveraging their first-party data to create robust ‘commerce media’ ecosystems,” said Daniel Aks, President of digital advertising company Undertone. “Building on the approaches taken by companies like Chase and United Airlines, industries such as financial services, transportation and hospitality are likely to follow suit. These companies, while not traditional retail sellers, possess vast troves of valuable consumer data — spanning purchase behaviors, travel habits, and lifestyle preferences — that can be monetized for targeted advertising.”
Clean rooms and data collaboration
Data platforms and data collaborations will be a big part of the growing RMN space in 2025. That’s because customer data connects these multi-channel experiences and digital ads, and it has to be managed in a privacy-compliant way.
“Retailers will need to prioritize data collaboration frameworks that maintain customer privacy while optimizing for results, especially as privacy regulations evolve,” said Regina Ye, CEO and co-founder of retail media technology company Topsort. “Solutions such as privacy-enhancing technologies (PETs) and clean rooms will become the norm, allowing brands and retailers to securely collaborate and build trust.“
Data isn’t only essential for delivering effective ad experiences but also for measuring them. To ensure privacy, clean rooms will be used more widely.
“Advertisers continue to face challenges when it comes to assessing ad effectiveness across different ‘walled gardens’,” said Matt Spiegel, EVP of TruAudience growth strategy for TransUnion. “Clean rooms are resurging as a solution to this problem, by allowing multiple parties to combine data in a secure, shared environment — without transferring ownership or movement of the data.”
Dig deeper: Data clean rooms: A beginner’s guide
Full-funnel measurement
Return on ad spend (ROAS) measures the revenue (sales) generated by a campaign against the cost of the campaign. By definition, it focuses on lower-funnel purchases that result from the campaign. However, because of the growing reach of RMNs, customers can be influenced by advertisers higher up in the funnel. Expect RMN advertisers to shift focus to these upper-funnel gains in the new year.
“Despite each retail media platform having different advantages, the overwhelming majority prioritize ROAS, specifically generated from conversion as the most critical metric,” said Harvey Ma, VP and general manager of Sam’s Club Member Access Platform. “While I think it’s an important metric, it should not be the only one. Effective advertising and experiences should demonstrate attributable conversion, but also longitudinal engagement and value over time. More specifically, the factors contributing to success must be paired with suitable metrics that can best be measured against those factors.”
Ma added: “Purchase cycle, frequency, household penetration and audience propensity are among the many available metrics that should be considered and modeled in a longer-term, lifetime value measurement KPI that may be better suited for brands looking at sustainable growth vs. short-term share shifting. In 2025, I foresee advertisers aligning retail media measurement with their business objectives beyond ROAS.”
The post Retail media networks continue to grow: 2025 predictions appeared first on MarTech.
**Predictions for the Growth of Retail Media Networks by 2025**
Retail media networks (RMNs) have emerged as one of the most transformative trends in the advertising and e-commerce industries in recent years. These networks, which allow retailers to monetize their digital platforms by selling ad space to brands, have become a critical component of the modern marketing ecosystem. As we look toward 2025, the growth trajectory of retail media networks shows no signs of slowing down. In fact, analysts predict that RMNs will continue to expand at an unprecedented pace, reshaping the way brands connect with consumers and driving innovation across the retail and advertising landscapes. Below, we explore the key factors fueling this growth, the challenges ahead, and what the future holds for retail media networks.
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### **The Current State of Retail Media Networks**
Retail media networks have gained significant traction over the past few years, with major players like Amazon, Walmart, Target, and Kroger leading the charge. These platforms leverage first-party data collected from their vast customer bases to offer highly targeted advertising opportunities to brands. This approach has proven to be incredibly effective, as it allows advertisers to reach consumers at the point of purchase, delivering personalized messages that drive conversions.
According to eMarketer, U.S. retail media ad spending reached $41 billion in 2022, accounting for nearly 20% of total digital ad spend. Globally, the market is expected to grow even further as more retailers recognize the value of their digital real estate and the demand for data-driven advertising solutions continues to rise.
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### **Key Drivers of Growth**
Several factors are contributing to the rapid expansion of retail media networks. By 2025, these drivers are expected to accelerate further, solidifying RMNs as a dominant force in the advertising industry.
#### 1. **The Shift to First-Party Data**
With the impending phase-out of third-party cookies and stricter data privacy regulations, advertisers are increasingly turning to first-party data to inform their campaigns. Retailers are uniquely positioned to provide this data, as they have direct access to customer purchase histories, browsing behavior, and demographic information. This shift is expected to drive more brands to invest in retail media networks as a reliable source of actionable insights.
#### 2. **E-Commerce Boom**
The global e-commerce market continues to grow, with online shopping becoming an integral part of consumers’ lives. By 2025, e-commerce sales are projected to account for nearly 25% of total retail sales worldwide. This trend creates a fertile ground for retail media networks, as more consumers interact with digital storefronts, providing retailers with valuable opportunities to serve targeted ads.
#### 3. **Retailers Diversifying Revenue Streams**
Retailers are increasingly looking for ways to diversify their revenue streams, especially in the face of rising operational costs and economic uncertainty. Retail media networks offer a high-margin revenue source that complements traditional retail sales. By 2025, more retailers—both large and small—are expected to launch their own RMNs, further expanding the market.
#### 4. **Advancements in Technology**
The adoption of artificial intelligence (AI), machine learning, and automation is making retail media networks more sophisticated. These technologies enable retailers to deliver hyper-personalized ad experiences, optimize campaign performance in real-time, and provide detailed analytics to advertisers. By 2025, continued advancements in technology will likely make RMNs even more effective and appealing to brands.
#### 5. **Integration with Omnichannel Strategies**
As retailers embrace omnichannel strategies to provide seamless shopping experiences across online and offline channels, retail media networks are becoming a key component of these efforts. By integrating RMNs with in-store advertising, mobile apps, and loyalty programs, retailers can create cohesive campaigns that engage consumers at multiple touchpoints.
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### **Predictions for 2025**
#### 1. **Market Size and Spending**
By 2025, global retail media ad spending is projected to exceed $100 billion, driven by increased adoption across industries and regions. In the U.S. alone, RMNs could account for over 25% of total digital ad spend, solidifying their position as a cornerstone of the advertising ecosystem.
#### 2. **Proliferation of RMNs**
While major players like Amazon and Walmart currently dominate the space, the next few years will see a proliferation of RMNs across various retail sectors, including grocery, apparel, electronics, and even niche markets. Smaller retailers and regional players are expected to launch their own networks, leveraging their unique customer bases to attract advertisers.
#### 3. **Convergence of Retail and Media**
The lines between retail and media will continue to blur as RMNs evolve into full-fledged media companies. Retailers will invest in content creation, such as shoppable videos, live-streaming events, and influencer partnerships, to enhance their advertising offerings and engage consumers in new ways.
#### 4. **Increased Collaboration Between Retailers and Brands**
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