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What's next for retail media? 5 bold predictions for 2025

Mother and daughter in a grocery-store aisle.
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As spending with retail media networks (RMNs) continues to grow — predicted to hit $166B in 2025 — retail media evolves daily. Because of the vast array of 1P-connected tactics it powers, Inmar Intelligence is constantly collaborating with retailers across the maturity scale within retail media. This allows the company to share unique perspectives on the more elusive areas of RMN evolution, like in-store media and creator marketing.

Read on to discover five key predictions — and insights from other thought leaders — for how RMNs can win in 2025 by keeping the consumer at the heart of their strategy.

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In-store media will be key — but mastery won't come easy

Digital in-store media provides dynamic opportunities, but it requires a hybrid approach. Although screens may yield highly profitable impressions, the focus should be elevating the customer experience. Creating a cohesive experience through actions like scanning or tapping to access shopping support bots, digital coupons, and inspirational content will maximize advertisers' in-store and digital investments. 

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"I think signage should be part of the equation but the larger opportunity and focus should be on how to drive shopper value. Those investments should be priced and measured appropriately as experiential marketing versus eCPMs and iROAS," Leah Logan, vice president and general manager of retail media at Inmar Intelligence, said.

Creators and RMNs are the ultimate power couple

Consumers — especially Gen Z — increasingly turn to social media channels like TikTok and Instagram to search for product suggestions. 

"These platforms are helping searchers get feedback from people like them and are a way to bypass a lot of the search-optimized and paid content on Google that can be less helpful in answering nuanced questions," Matthew Fantazier, head of integrated media at Kenvue, said.

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Creator content enables RMNs to deliver educational, inspirational content that resonates with consumers and seamlessly connects the shopper journey.

Channel diversity will define RMN success

Successful RMNs will prioritize omnichannel experiences that meet consumers where they are, whether through social media, CTV, or other digital platforms. This ensures the channels enhance the consumer experience. By integrating these channels and leveraging well-timed incentives, RMNs can guide price-conscious consumers from discovery to purchase while meeting personalization and convenience expectations.

But don't add every channel to your mix. Prioritize those that seamlessly enhance the customer experience: For example, a QR code on signage that links to a creator's recipe and coupon or a CTV ad that lets consumers add a product to their shopping list. With the right strategy, offsite channels can cohesively connect the journey from inspiration to discovery to purchase.

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"Onsite media is certainly a continued priority for bottom funnel conversion but advertisers looking to truly drive incremental impact have to convert appropriately with offsite media. This is about reaching people where they are, in many cases while they are in a passive shopping mode," Logan said. "The key will be relevancy and receptivity in that outreach and retail data will be at the center of it all." 

Onsite media isn't dead, but true opportunity exists outside product listings

When it comes to search ads, the number of people and views is finite; they will not be the breadwinners of your RMN. Focusing on monetization opportunities in the onsite environment contributes to the consumer's experience. Whether incorporating engaging video, adding interactive shopping tools, or leveraging the power of creator inspiration, the focus has to be on adding value to the shopper experience. This is where the real incremental value will also happen for advertisers. 

RMNs will prioritize transparency in measurement over standardization 

In 2025, measurement for RMNs will focus on enhancing transparency rather than rigid metric standardization. Identifying standard metrics across RMNs remains difficult, but retailers have a huge, untapped opportunity to provide more insights to support the reporting they provide today. 

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Advertisers want to understand if they are driving incremental sales and most retailers are not currently open to providing the raw data needed to power mixed-media modeling and multitouch attribution with their partners. 

"Retailers should focus on unpacking 'why' they're looking for that data and, in the most simple terms, they just want to understand what behavior is happening to contribute to the sales lift/iROAS reporting they're receiving," Logan said. "Retailers need to provide insights — that's the true key to transparency in reporting."

Overall, the retail media landscape will continue changing more rapidly than anyone can possibly predict. The only true North Star is to continue thinking like a consumer and focus on adding value. Remove the boundaries and complexities as much as possible for advertiser partners to truly reach, impact, and add value to the shopper and the results will follow. 

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With only 12% of advertisers reporting their retail media is seamlessly managed alongside other channels with consistent messaging and strategy1, the opportunity to create a unified message across platforms remains untapped.

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1. Skai x P2PI State of Retail Media Survey, December 2023

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To see how to create the consumer's ideal shopping experience, download Inmar's report, Retail Media Networks: Areas to Watch.

This post was created by Inmar Intelligence with Insider Studios.

 

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