Retail media is a great way for brands to get promoted on third-party retailer digital property and its use is only growing in popularity, with the global media sector reaching around $150 billion over the last five years.
This rise is happening for two key reasons. The first is that with the new rules concerning third-party cookies, retail media is a great way to continue to run targeted campaigns that don’t make use of this third-party data. Secondly, retail media campaigns are easily trackable in terms of ROI. They also meet the buyer when they have a high buying intent which means they are more likely to convert.
What all this means is that those in the marketing space such as media professionals, marketers, and content creators must keep up to date with the trends in the retail media space. If they are to utilize it effectively in their own campaigns and content creation in 2025, that is.
Key Retail Media Trends for 2025
Now let’s take a look at the key retail media trends that we’ll see in 2025.
Growth of Retail Media Networks (RMNs)
It’s not just the retail giants like Pampers, Nike, and Nespresso that are using retail media networks. Now the little guys, niche stores, and mid-sized retailers are getting in on the action too.
It’s also likely that in 2025 the spread of RMNs as the Sonder 2025 Owned Media Global Market Report, suggests means “…finance, travel, telco and convenience creating owned media networks that leverage their data and channels.” Which will facilitate an even broader reach.
Integration of AI for Smarter Ad Targeting
While the use of third-party cookies may be declining, other useful tools are now at our fingertips. One of these includes AI which as the SNS Insider Retail Media Platform Market Report states can be used to better refine audience segmentation and predict purchasing behaviours. Additionally, generative AI for dynamic is perfect for placing contextually relevant ads within retail media, further customising the experience for the customer.
Rise of On-Site Search Advertising
Another retail media trend to watch out for in 2025 is the increase of search ads on retailer websites. With people spending more online, it makes sense that more will be spent on helping them find the things they want, as the SNS Insider Retail Media Platform Market Report here describes.
What this means is we can expect buyers will get more sponsored products brought up at the beginning of the online search results. The benefit of this is that they are perfect places to capture high-intent shoppers.
To take full advantage of on-site search advertising you must make sure you have optimised your products for visibility in retail search results. This includes using the right keywords, the best images, and having plenty of reviews to encourage customer trust. It’s also important that if you are paying for a sponsored spot you keep that information up to date, and that you have plenty of stock.
Social Commerce Integration
We’ve already seen some strong indications that shopping on social media platforms is a growing trend. In 2025 the biggest area of growth in this area will be with live content, and being able to shop within it.
An example of this is TikTok shop. Initially launched in September 2023 and expanded to include the UK in 2024. The newest social media giant appears to be investing heavily in this retail media crossover space. Definitely one to watch for the future.
Retail Media in the Metaverse
In 2025 we’ll start to see immersive shopping experiences in virtual spaces like the metaverse. These provide important opportunities for brands to get their products seen, and to create interactive ads that will wow their customers.
An example of augmented reality enhancing the shopper’s experience is the IKEA Place app. Where users can see virtually how potential new furniture will fit into their home.
Enhanced Attribution Models
During 2025 retailers are going to get even better at tracking which ads and promotions result in sales. This means more accurate ROI information for brands, which allows them to cut spending where it’s not working and increase it in the areas it is.
In-store and online sales data will also be linked for a unified performance view that will further inform the campaigns and spending of brands.
Sustainability-Focused Retail Media
The environment will continue to be an important subject in the minds of customers in 2025. Retail media companies will reflect this by promoting eco-friendly products or practices, and ensuring that their processes are also sustainable, and transparent.
Programmatic Retail Media Buying
We can also expect the placement of ads to get easier and more effective in 2025 with improved programmatic tools for automated ad placement. This means scaling campaigns and improving their efficiency across channels will be faster and easier too.
More out-of-home digital signage
While there’ll be plenty of RMP growth on people’s devices, we’ll also start to see opportunities appear outside of the home as well. Look out for digital billboard opportunities in restaurants, bars, and pubs.
Consumer Privacy and Data Trends
Cookieless advertising is on the rise in 2025, but that doesn’t mean personal ads are obsolete. Instead, new techniques that adhere to the privacy first regulations in innovative ways using first-party data will be used.
The Role of Smaller Retailers
2025 will see the growth of turnkey solutions which means smaller retailers will be able to offer and use RMP more effectively. This means even niche retailers will be able to better capitalize on their unique audience segments.
Challenges to Navigate
In 2025 the main challenges with RMP that brands and retailers will have to navigate are the cost and the integration of platforms. Cost-wise, smaller brands will need to make sure the ROI or RMP works. Those operating the RMPs will need to address issues of integration between networks, and platforms to provide a more unified approach.
Conclusion
From more RMNs to AI, and the metaverse 2025 is set to be an epic year for retail media. To get ahead in 2025, brands retailers and brands should be investing in new approaches that prioritize customer-centric approaches.
How do you plan to adapt your retail media strategies in line with these trends in 2025?
Alternatively, if you’d like some help from the experts, why not discover how ADvendio can help you with your advertising, here?
