Retail Media Radar: November
This month’s Retail Media Radar explores the key trends and predictions shaping retail media in 2025. From continued growth to emerging trends in measurement, AI and sustainability, the Retail Media industry is poised for a year of significant evolution.
And this month we have again applied some Generative AI to Retail Media Radar, as we welcome our next new virtual employee ‘NextGen Jade’.
You can dive into all the detail of the stories below, too.
1. Retail Media expected to grow 19% globally in 2025
Retail Media is expected to generate $166 billion globally in 2025, up from $140 billion in 2024 (source eMarketer)
According to the IAB UK, retail media spend in the UK is forecast to exceed £1 billion in 2025. This milestone underscores the rapid growth of retail media as brands allocate larger portions of their marketing budgets to retailer-owned media.
The surge in retail media investment continues to be fuelled by its effectiveness in driving measurable results, particularly through leveraging first-party data.
Retail media's growth highlights its critical role in bridging the gap between online and offline shopping experiences. For brands, this represents an unmissable opportunity to enhance visibility and drive conversions in a privacy-first world.
More information: IAB UK
2. Retail Media search will outperform traditional search ad spend
US retail media search ad spending is projected to grow at double-digit rates over the next four years, ultimately reaching $76.83 billion
In contrast, spending on traditional (non-retail) media search ads (most specifically Google Ads) is slowing down, with growth below 1.0% by 2028, reaching $106.96 billion.
This increase in retail media spending could be attributed to its effectiveness in meeting performance-focused goals. A recent survey by Mediaocean and TechValidate found that over half (59%) of retail marketers worldwide prioritise performance-driven paid media as the most essential advertising capability and area of media investment.
This will have huge implications for brands and marketers in understanding and managing the online customer journey. Where previously search engines, such as Google, had been the default starting point for a customer’s product search, retailers such as Amazon have interrupted that customer flow and injected themselves deeply into a customer’s search habits. As retailer marketplaces widen offering more products from more categories, brands will find investing in media that can be tracked through to purchase with more measurable ROAS.
More information: eMarketer
3. Measurement, measurement, measurement
And Retail Media measurement will be a key topic in 2025 as it continues to evolve. These are our predictions for next year’s key measurement trends:
o Standardisation of Measurement Metrics: The industry is moving towards unified measurement standards to ensure consistency and transparency across various RMNs. The Interactive Advertising Bureau (IAB) and Media Rating Council (MRC) have released Retail Media Measurement Guidelines to facilitate this standardisation. More information: IAB
o Enhanced Attribution Models: Advertisers are seeking more accurate attribution models that can track consumer interactions across multiple touchpoints, both online and in-store. This comprehensive approach aims to provide a clearer understanding of the customer journey and the effectiveness of marketing efforts. More information: North Forty News
o Integration of Artificial Intelligence (AI) in Measurement: AI and machine learning are being increasingly utilised to analyse complex data sets, offering deeper insights into consumer behaviour and campaign performance. These technologies enable more precise targeting and real-time optimisation of advertising strategies. More information: Tinuiti
o Focus on Incrementality and Return on Ad Spend (ROAS): There is a growing emphasis on measuring the incremental impact of advertising campaigns and accurately calculating ROAS. This focus helps advertisers assess the true value generated by their investments in retail media. More information: eMarketer
These trends are critical for brands, who are demanding a shift towards more sophisticated, transparent, and privacy-conscious measurement practices in retail media networks, aiming to enhance the accuracy and effectiveness of advertising strategies.
4. The Rise of Interactive and Shoppable Content - engaging Audiences in Real Time:
Social media platforms are evolving into comprehensive shopping destinations, enabling users to discover and purchase products without leaving the app. Features like Instagram's Shopping Tags and TikTok's Shop blend social interaction with commerce.
Adweek highlights that 2025 will see a rise in interactive and shoppable content, with brands leveraging livestreams, videos, and gamified experiences to captivate consumers. This trend is particularly relevant for engaging younger, digital-first audiences.
Video content will increasingly allow viewers to purchase items directly from videos. This seamless integration aims to reduce friction in the buying process and cater to the growing demand for interactive content.
Livestream shopping, which combines real-time video streaming with e-commerce, is set to become more prevalent. This format allows consumers to interact with hosts and purchase products instantly, enhancing engagement and immediacy. Platforms like TikTok are expanding their shoppable livestream offerings to capitalise on this trend. Think QVC on steroids!
By integrating commerce into content, brands can shorten the path to purchase, enhancing the overall shopping experience.
Shoppable content is not just about driving sales but building immersive brand experience, enabling brands to engage consumers where they are, providing value through both entertainment and convenience.
More information: ChanelSight
5. AI will shape Retail Media Networks into highly responsive. Efficient and personalised advertising platforms
In 2025, Artificial intelligence (AI) is expected to play a central role in transforming Retail Media Networks (RMNs).
Programmatic ad buying, fueled by AI, will increasingly enable RMNs to automate the purchase and placement of ads, optimising for best results across channels and platforms. This will improve efficient budget allocation and ad placements, reducing wasted ad spend and improving performance.
AI will also allow advertisers to optimise campaigns in real time, ensuring maximum relevance and engagement. In particular Dynamic Creative Optimisation (DCO) will automatically adjust ad creatives based on performance data in real time. AI will tweak elements like images, messages, and calls to action to resonate better with specific audience segments, optimising the content to improve engagement and ROI.
With complex machine learning models, RMNs can now better understand the customer journey across channels (online, mobile, in-store), providing advertisers with deeper insights and more accurate attribution, especially in omnichannel environments.
And AI tools for content generation will increase the efficiency of image and content creation enabling RMNs to create personalised content at scale. AI can generate product descriptions, social media captions, and ad copy tailored to various audience segments, ensuring that messaging is consistent, relevant, and engaging.
More information: eMarketer
6. The Growth of Non-Retail Retail Media Players
The huge successes of Retail Media Networks has spurred other industries keen to leverage their first-party data and digital platforms to engage customers outside traditional retail settings.
This trend shows that retail media is expanding far beyond brick-and-mortar and e-commerce platforms, tapping into diverse industries to offer unique advertising opportunities.
A good example Commonwealth Bank who has launched CommBank Media Network, aiming to capture a share of the growing retail media market, which is projected to reach $1 billion in Australia.
CommBank’s media network leverages its extensive customer data, allowing advertisers to create highly targeted campaigns based on customer insights from banking and transactional data. This kind of access to data on consumer spending behaviours, enables brands to reach audiences with relevant ads tailored to their financial habits, lifestage and preferences. Ads can be tracked through to purchase enabling brands to more effectively optimise their ROAS.
The CommBank Media Network offers advertising opportunities across a wide rage of digital properties, including the CommBank app and online banking platform, which see millions of monthly users.
CommBank’s entry into retail media underscores the growing trend of non-retail brands tapping into retail media opportunities. By integrating retail media within its digital ecosystem, CommBank provides a unique, contextually relevant platform for advertisers to engage with consumers. For brands, this represents a fresh channel to capture consumer interest outside of typical retail environments, with the added advantage of financial behaviour insights.
More information: B&T
Retail media is on the brink of a transformative year. From record-breaking ad spend to innovative technologies and sustainable practices, 2025 promises to be a pivotal year for the industry.
At id8 retail, we believe that staying ahead of these trends is essential for brands seeking to maximise their impact in an increasingly competitive marketplace.