What's in Store for Retail Media Networks in 2025
The retail media hype seems to have hit a fever pitch over the past 12 months, but the dollars flowing in proved that it’s far more than just an ad tech-driven buzzword. eMarketer says the ecosystem raked in about $43 billion in 2023, and it’s now expected to reach nearly $85 billion by 2027. Big numbers and lots of potential upside, but that growth isn’t all net new dollars. The money has to come from somewhere, and a new sector with new players can only scale so much before there are winners and losers (not to mention mergers and acquisitions).
So with 250-plus retail media networks (RMNs) — and more to follow — there's bound to be consolidation in 2025. However, I predict that it won’t be as sizable as some might expect. The contraction will come later. In the meantime, we’ll see RMNs focus on proving that they deserve to stick around by showcasing the strength, uniqueness and value of their tech stacks across four key areas:
Make it Interoperable
There’s another buzzword! The notion of interoperability is thrown around all the time, especially in CTV, but it’s actually a really critical part of the value prop for RMNs. Retail data is only as useful as the platforms it can be activated within; it’s not worth much to advertisers in a vacuum (or stuck in a dashboard). That means we can expect to see RMNs building direct connections with vetted players like TTD, Magnite, OpenX, and FreeWheel, thus allowing buyers to create and target audience segments in the platforms they’re already used to working with. Direct integrations with tech-savvy media companies (looking at big players like Disney and NBCU, or even more niche publishers that align with specific audiences) will also be a point of differentiation, as well as deals with measurement providers that make it easy to incorporate retail data into various teams’ existing workflows.
Privacy, Security and Scale
But it can’t be too easy. While RMNs need to prove that they’re willing and open (literally) to play with others, they also need to prove that they’re safe. The value of retail data stems from each retailer’s relationship with its customers, therefore, maintaining that trust and demonstrating that the data isn’t misused (or shared without permission) is crucial. Those that can scale across the patchwork of state-level privacy regulations in the U.S. through partnerships and integration with clean rooms like Snowflake, AWS, Infosum, and Habu/LiveRamp will see success here.
Prove That You’re Worth a Premium Price
This is key. This data isn’t cheap (and rightfully so), but media buyers (and their brand clients) want more than just return on ad spend stats; they want measurement that can prove that the additional investment is actually driving real business outcomes. Therefore, look for continued partnerships with platforms like Shopify, Innovid, EDO, and others that can show how RMNs help drive sales (or leads, website visits, or whichever performance metrics the advertiser is looking for).
Tie it All Up in a Well-Balanced Bow
The platforms that work out the right balance of in-house tech along with partnerships to supplement in the areas where it would be too costly (or just not beneficial) to build will actually be able to deliver on the promise of what retail media offers — which ultimately is the ability to close the loop between media spend and a transaction.
And One More Thing — Leadership
To execute on all of the above, a RMN needs enough bankroll to handle all the costs associated with building a data-driven business in the consumer privacy era — but also to have a clear and dedicated business strategy. For example: Is the goal to just be a next-gen shopper marketing platform, an a la carte data provider, or a full-on content and publishing platform?
Whichever path they chose, all of the go-to-market efforts, including the branding, marketing and communications, partnerships and business development, as well as the product decisions and investments in the tech stack need to tie back to a clear, compelling vision. And a great leadership team will not only be able to sell that vision to customers (and employees), but also to the board (or parent company) and convince them all to hang in for the long haul.
Shifts in consumer behavior, privacy regulations and overall ad industry trends in 2024 have created opportunities for innovation, collaboration and, most of all, differentiation, for RMNs in 2025. Retailers that prioritize these strategic areas while driving the outcomes clients need will gain wallet share; those that don’t will get left behind.
Tameka Kee is advertising futurist and senior vice president, programming and operations at CIMM, a nonpartisan, pan-industry coalition that embraces the entire media and advertising ecosystem.
Tameka Kee joined CIMM with nearly two decades of ad industry experience that spans events, marketing, communications, and content strategy across previous roles including: Head of Content Strategy at AdMonsters; VP, Content & Strategy at Wise Public Relations; and Director, Marketing and Content Strategy at The Rubicon Project (now Magnite). She most recently led all marketing and advertising initiatives as Director of Marketing and Communications at Black Innovation Alliance, a non-profit organization dedicated to building a more inclusive and supportive ecosystem for Black entrepreneurs. Earlier in her career, Kee founded TJK Media, a content marketing agency that developed campaigns and events for clients such as: eMarketer, Rubicon Project, Lotame, Fyber, Adcolony/Opera Mediaworks and TechMedia. Before launching TJK Media, she served as a reporter and analyst for industry trades like mediabistro, Digiday, and MediaPost.
