The Future of Retail Media & Why Every Brand Should Care
Retail media is no longer a niche digital ad strategy—it’s a $62 billion industry in 2025, and it’s growing fast. Brands that ignore its evolution risk falling behind in one of the most data-rich, high-intent advertising channels available.
Here’s what you need to know about where retail media is headed—and how to make it work for your brand.
📊 Retail Media Growth: Still Booming, But Changing
Even after a downward revision from earlier projections, retail media remains one of the fastest-growing ad channels. By 2028, it’s expected to reach nearly $100 billion in ad spend, fueled by:
✅ Mass adoption by advertisers – 75% of brands plan to increase retail media spend in 2025.
✅ The rise of display ads – By 2027, $4 of every $10 in retail media spend will go to display formats, not just search.
✅ Off-site retail media scaling up – More than one-fifth of retail media spend in 2025 will go beyond retailer-owned properties (e.g., CTV, programmatic).
✅ In-store retail media gaining traction – Though small, in-store ad spend will double by 2028.
The bottom line? Retail media isn’t slowing down—it’s just diversifying. Brands that want to win in this space need to adapt beyond basic search placements.
📢 Why Brands Are Shifting More Budget to Retail Media
Retail media offers two massive advantages that traditional digital advertising struggles with:
🔥 It’s measurable – Advertisers can track ad spend directly to sales, even in a privacy-first world.
🔥 It’s privacy-compliant – First-party data from retailers gives advertisers high-quality targeting without third-party cookies.
But as retail media evolves, so do its challenges. Rising CPCs, lack of standardization across Retail Media Networks (RMNs), and growing competition make media efficiency harder to achieve.
🔎 Search vs. Display: The Shift in Retail Media Spend
💰 Retail media search ad spending will hit nearly $40 billion in 2025 – Amazon and Walmart dominate this space.
📈 Retail media display will approach $23 billion in 2025 – Growth is coming from off-site placements and CTV.
🎯 In-store retail media will exceed $500 million in 2025 – More brands are testing in-store digital ads, but scale remains a challenge.
What Does This Mean for Brands?
Search is still king, but it’s reaching saturation – Costs are rising as competition grows.
Display and off-site are the next big battlegrounds – RMNs are pushing beyond search, integrating with CTV, social, and programmatic.
Measurement and attribution will become critical – With retail media touching both performance and brand awareness, brands need new KPIs beyond just ROAS.
🚀 How Brands Can Win in Retail Media in 2025
💡 1. Reevaluate Your Retail Media Budget
Retail media isn’t just performance marketing anymore—it’s full-funnel advertising. Brands need to:
✅ Balance search, display, and off-site media
✅ Set benchmarks beyond ROAS to measure upper-funnel impact
✅ Avoid wasting budget on inefficient RMNs that don’t deliver results
💡 2. Experiment with Off-Site & In-Store Retail Media
Brands that only invest in search are leaving growth on the table. Instead:
✅ Test off-site retail media (social, CTV, programmatic) for brand lift and conversion
✅ Explore in-store placements as digital shelf space evolves
💡 3. Prioritize Data & Measurement
Retail media is fragmented—each RMN has its own data model. Brands that succeed:
✅ Invest in unified measurement tools
✅ Test multiple RMNs but optimize aggressively
✅ Use retail data beyond ad campaigns (e.g., informing broader marketing strategy)
📈 The Future of Retail Media: What’s Next?
📢 Amazon and Walmart will remain dominant, but new players (Target, Kroger, Instacart) are gaining ground.
💡 Retail media will shift toward video and CTV, blending branding with commerce.
🔍 Brands will demand more transparency, forcing RMNs to improve measurement and standardization.
Final Takeaway:
Retail media isn’t optional anymore. It’s a critical piece of modern advertising, blending first-party data, commerce, and performance marketing. Brands that adapt beyond search and invest strategically will dominate the next era of retail advertising.
