Navigating the Future of Retail Media
The retail media industry is undergoing a seismic transformation, poised to become one of the most impactful channels for brands to connect with consumers. In 2025, this space is defined by quick technological advancements, shifting consumer behaviors, and increasing competition among retailers striving to capture more advertising dollars.
During the month of December and January, we have listened, learned, questioned and captured the main trends that impact brands across the globe. Marketing Procurement must stay ahead of these trends to provide continued value to their marketing partners, navigating a fragmented supply base marked by inconsistent measurements and rapid innovation. Here we list what we have learned over the past few months:
1. Retail Media Landscape in 2025
- Dominance of Amazon and Walmart: Close to 85% of retail media ad revenue is spent with two giants, marginalizing smaller players.
- Challenges for Smaller Networks: Issues like lack of standardization, difficulty attributing media buys to sales, and insufficient data hinder their growth.
- Predictions: Consolidation in ad spending across fewer networks and the growing relevance of ad tech platforms to support smaller players.
- LINK TO MORE INSIGHTS
2. Generative AI and Predictive AI
- Integration for Growth: Combining generative AI with predictive AI enhances business efficiencies, such as improving demand forecasting and reducing fraud.
- ROI Focus: Retailers plan significant investments in AI but emphasize returns through better customer engagement and productivity.
- Upskilling Needed: A large skills gap exists, with AI tools needing better accessibility for employees through natural language interfaces.
- Final Note on AI: Generative AI complements predictive AI rather than replacing it. Each serves distinct functions, and their combined use can unlock greater potential when aligned with business goals.
- LINK TO MORE INSIGHTS
3. Media and Entertainment Strategies
- Branded Content Evolution: Retailers are investing in entertainment (e.g., games, feature films) to engage customers and build loyalty beyond transactions.
- Gamification: Strategic use of games within retail apps enhances engagement and helps gather valuable first-party data.
- Predictions: Increased use of branded content to support loyalty and performance marketing.
- LINK TO MORE INSIGHTS
4. Impact of Chinese E-Commerce Giants
- Disruption and Adaptation: Platforms like Temu, Shein, and TikTok Shop face regulatory challenges and competition, leading to evolving business models. This seems to change every day. Stay tuned.
- Trends: Third-party marketplaces and direct-to-consumer strategies are becoming important for these players.
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5. Retail Membership Partnerships
- Expanding Perks: Partnerships between retail memberships and services (e.g., Walmart with streaming platforms) are key to differentiating offerings.
- Loyalty Drivers: Memberships remain crucial for driving loyalty, with partnerships increasingly targeting consumer convenience and entertainment.
- LINK TO MORE INSIGHTS
6. Data and Gamification
- Value Exchange: Successful interactive experiences hinge on offering a clear value exchange to consumers, such as personalization or education.
- Strategic Gamification: Adding interactive elements like quizzes to welcome series drives higher engagement and data capture.
- LINK TO MORE INSIGHTS
To learn more about each trend, please click the link under each headline.