2024 saw the popularity of retail media soar – with ad spend reaching $33.86 billion, climbing at a 13.7% annual growth. Inevitably, 2025 will bring more developments in this space, but what can brands do to ensure their offerings place them ahead of competitors, and deliver ROI? And what emerging trends can we expect to see? Industry experts weigh in.
How to stand out from competitors, and maximise full retail media potential:
Brands and retailers will find it challenging to set themselves apart from competitors in 2025, but first party data will be a golden tool for achieving this, says Emma Newman, CRO EMEA, PubMatic:
“The potential for retail media to truly explode in the next year is no secret – with spend set to hit $170 billion in 2025. Significant innovations in ad formats, technology integration, and enhanced targeting capabilities will only add fuel to this, turning it from a conversion-focused channel into one that also contains upper-funnel opportunities. But with so much spend heading towards retail media, standing out will be harder for brands and retailers next year.
“First-party data from brands and retailers will be vital for standing out on these networks, especially as their offsite potential grows. Expanded ad formats that drive more interactive and personalised shopping opportunities, as well as fuller integration with channels such as CTV should be a priority for brands as these networks continue to evolve, further helping to enhance brand visibility, increase engagement, and drive conversions.
Sebastian Yoffe, Managing Director LATAM, Lotame echoes that data will play a vital role in providing a competitive advantage:
“Data and performance will remain key differentiators, but retailers must demonstrate transparency and value to attract diverse brand investments. Those who have data have a competitive advantage. How retailers harness that data to prove return on ad spend and proof of performance will separate the leaders from the followers. However, the cost of media may become a major sticking point and barrier to entry for attracting more diverse brand dollars. There’s only so much marketing budget to go around so retailers need to be as transparent as possible about why that media is so valuable and what they can actually deliver in terms of ROI. Partnerships will be crucial for businesses looking to optimize their retail media strategies, ensuring seamless implementation and maximizing return on investment.”
Programmatic media curation will continue to be crucial going into the new year, complementing existing programmatic strategies by adding extra focus on quality and precision. When combined with supply path optimisation and contextual targeting, it builds a strong foundation for digital advertising success.’’
There will be a contrast between retailers that half-heartedly invest in retail media networks (RMNs), and those that understand and fully leverage the networks, says Nick Hinsley, CRO, Zitcha:
“Some retailers underestimate the power of retail media networks (RMNs), viewing them merely as an advertising add-on. However, in 2025, we’ll begin to see stark differences between the retailers that tap into the full potential of RMNs, and those that don’t.
Understanding that RMNs can be a strategic extension of the retail ecosystem, and in turn, a transformative part of a retailer’s business model, will unlock a host of rewards for retailers, such as increased revenue without price cuts, improved customer engagement, and deeper brand partnerships.
“Organisational change will be crucial for businesses that want to achieve this and drive overall business growth. In particular, silos between merchandising, marketing, and IT teams need to be broken down. A unified approach between joint business planning (JBP) and retail media execution will lead to unparalleled cross-functional collaboration that optimises the true potential of retail media.”
The challenge of measuring success:
Lucie Laurendon Head of Product Marketing at Equativ highlights the need for more consistent measurement of advertising performance in 2025:
“As retail media matures, there is a rising need for more consistent measurement of advertising performance. The IAB has made solid headway by creating working groups focused on codifying common metrics, but we can expect a stronger collective push to improve standardisation next year amid increasing concerns that discrepancies could delay market expansion.
Networks and brands alike are starting to recognise that powering ongoing growth depends on enhancing clarity and confidence — and as a result, more will come together to agree on set definitions and methodologies for effectively, clear, and comparably tracking core KPIs. This progress will be even more impactful as retailers begin unifying their tech stacks to cover both on-site and off-site activities. By leveraging data across all retail activations through a single platform, brands and agencies will be better equipped to track, optimize, and measure performance consistently and comprehensively.”
The lack of standardisation, going beyond basic metrics will need to be addressed, says Andrew Mole, CEO & Co-Founder, pubX
‘’One of the challenges I foresee is that the wide variety of retail experiences and the continued competition for spend between retailers will mean it is very hard to create standardisation for this burgeoning sector beyond very basic metrics. This is something the IAB and other trade bodies are trying hard to address; although it may require the involvement of a major player – such as Amazon – to drive this forward.
“What is most important is that the sector learns from the mistakes made with online publishing, such as having too many ads, too much clutter on pages, and failing to protect the core purpose of the content. RMNs don’t need to take that long to get there if they adopt best practices from existing digital advertising, or convert adtech to help monetize.”
However, AI will be a crucial tool for ensuring campaigns achieve performance metrics as GAFA continue to assert their dominance, says Sergii Denysenko, CEO, MGID:
“In 2025, big tech will continue to dominate digital advertising, but savvy publishers and agencies will fight back to establish their own pipelines fuelled by first-party data — the new gold in a privacy-focused web. With cookies fading and mobile IDs on the chopping block, publishers will need to get smarter about data and audience ownership, with no more free handouts for vendors.
“Retail media will maintain its booming growth, CTV and DOOH will continue to supplant their predecessors, and AI will transform all it touches, including native advertising. Static ads will be relegated to print, with the ease of AI-assisted asset creation making dynamic, reactive creatives the new norm across all screens. As brands get more data-savvy, even the most awareness-focused campaigns will integrate performance metrics, with AI fine-tuning every campaign to hit the ideal audience, at the perfect moment, at the right price.
“Expect more legal and regulatory pushback against giants like Google, while publishers streamline inventory and slash resellers for cleaner, greener ad tech. 2025 will be a year of ruthless efficiency, groundbreaking innovation, and scrambling to adapt to the fallout of big tech’s legal and market battles.”
Alternative media networks and platforms to look out for in 2025:
Independent agencies may look to expand into emerging channels but a strategic approach is imperative, says, Jason Warner, Director, UK & EMEA, SBS:
“2025 will be make-or-break for many independent agencies as the uncertainty in the market continues to buffett and squeeze profits. While growth will be slow, budgets are still set to expand by +5.9%, signalling that there are opportunities available for those willing to grab them. Expanding into emerging channels, such as CTV, gaming, and retail media, will be tempting to every independent agency as a way to stand out. Still, care needs to be taken that moving into these channels is done in a sustainable and strategic way.
Critical to this is investing in the talent you already have in your team, upskilling them, and building out their expertise to succeed in these new channels. There also needs to be an awareness of the intricacies of the latest tools within these channels. Over-stuffing your programmatic tech stack with solutions only leads to wastage. Instead, a considered approach will ensure that spend within these new channels is maximised, driving ROI in the process.”
Additionally, Ben Cicchetti, SVP Marketing & Communications, InfoSum, urges brands not to overlook in-game advertising (IGA) in 2025:
“Brands planning their marketing strategies for 2025 should have in-game advertising (IGA) firmly on their radar. Billions of people around the world are gaming every day, yet IGA remains an under-utilized channel despite growing investments. This presents a massive opportunity for brands to tap into a highly engaged audience at scale.
“Gaming platforms hold a treasure trove of first-party data that can not only drive direct advertising opportunities but also inform broader campaign strategies based on player intelligence. Beyond this, we could see the rise of gaming media networks – similar to retail media networks – offering brands the opportunity to seamlessly integrate into gaming environments, reaching players in immersive, meaningful ways.
“The possibilities are endless: customizable avatars, virtual billboards, incentivized side quests that boost loyalty. Gamers already engage in deeply immersive and personalized worlds, making the opportunity for tailored ad experiences even greater. IGA offers creative and authentic ways to connect with the elusive, highly engaged gaming audience.”
Attention should also be shifted to social commerce, suggests Marcus Cooper, Business Director, UK, Making Science:
“Brands looking to stay competitive in 2025 should absolutely be advancing their social commerce capabilities. A shift towards live-stream shopping will capture audiences in real-time, creating engaging, interactive experiences that drive sales. In this dynamic space, ‘vibrant marketplaces’ are gaining traction, hinting at a new era of social commerce that’s poised to reshape the industry.
“Platforms like TikTok Shop are likely to lead the charge, setting new standards for social buying experiences. With global retail media spend expected to surpass $170 billion in 2025, brands must be agile, constantly analysing live data, competitor moves, and consumer preferences to maintain their edge.
“Additionally, virtual shopping experiences, like trying on clothing digitally, will bridge the gap between online browsing and in-store engagement. By leveraging these tools, brands can offer a more personalised and interactive shopping experience that meets consumers’ rising expectations.”
Boosting consumer engagement, and driving loyalty:
Consumer engagement, and capturing attention instantly should be at the core of brand’s campaigns, with voice assistance becoming a prominent interface, says Nick Morgan, Founder and CEO, Vudoo:
“In a world where attention spans are getting shorter, brands need to hook audiences in the first few seconds, and this will continue to shape key developments in e-commerce in 2025. Not only will we see a surge in the popularity of shoppable video, but also the emergence of different ways of leveraging technology to elevate video and collapse the funnel, creating a seamless, transaction experience. with its ability to collapse the traditional purchase funnel and consumer preferences leaning towards seamless experiences. 2025 will see the adtech landscape evolve beyond media and data, to being creative-led, with the increased use of dynamic visuals, strong calls-to-action, and smarter storytelling with video.”
“With data indicating that 48.2% of US adults are expected to use voice assistance technology in 2025, this will be a big area of growth for e-commerce players. At the moment, it’s treated as a convenience tool, but I think we’ll see voice becoming a much more dynamic interface. Voice assistants could serve as real-time shopping companions, provide recommendations based on preferences and even interact with shoppable content. This level of personalisation will serve not only to indicate and meet customer expectations, but foster loyalty.”
And last, but certainly not least, maximising customer loyalty is key for 2025, says Stefanie Briec, Director, Head of Demand Sales UK & INTL at AudienceXpress:
“Now more than ever, marketers have an array of powerful tools and channels at their disposal to make an impact next year. However, our latest research reveals growing concerns around the complexity of platforms and associated media tools. Marketers intend to focus on simplifying their media buys and validating their strategies with automation and campaign effectiveness measurement as priorities.
“At the same time, 2025 might just be the year of loyalty optimisation. As customer acquisition costs rise and audience fragmentation continues, ramping up efforts to gather customer data will offset any loss of signal and ensure targeting efforts are channelled in the right direction.”
