Having worked closely with both brands and retailers, I’ve witnessed just how impactful—and nuanced—this channel has become. Looking toward 2025, it’s evident that retail media is no longer just a line item on the marketing budget. Instead, it’s emerging as a central driver of growth, combining the precision of first-party data, omnichannel reach, and closed-loop measurement to influence consumers at the pivotal moments when they’re most likely to make purchase decisions.

What truly differentiates retail media from other digital channels?

At its essence, retail media puts the retailer’s own digital and physical spaces to work as advertising real estate. Consider your last visit to a leading retailer’s website: those sponsored products and tailored banners weren’t arbitrary—they were informed by deep purchase histories and browsing behaviors unique to that retailer. The influence of retail media extends well beyond digital storefronts. Some of the most forward-thinking campaigns I’ve executed blend on-site ads, such as sponsored listings, with off-site programmatic buys that leverage retailer data to reach high-intent audiences across social platforms and external websites. Physical stores are also being reimagined with digital signage and proximity-based ads, creating a dynamic environment that rivals any online experience. For example, when we partnered with a national CPG brand to introduce interactive in-store displays, their product discovery rates surged by over 30% within just a few months.

The appeal of retail media for brands

The appeal of retail media for brands is clear: it offers unparalleled targeting accuracy, especially as third-party cookies become obsolete. I’ve seen brands dramatically cut wasted ad spend by zeroing in on shoppers most likely to convert, thanks to exclusive retailer data. But precision targeting is only part of the story. Closed-loop measurement enables brands to directly link ad impressions to sales, both online and in-store. In one recent campaign, we utilized loyalty program data to track conversions, which not only drove a 25% lift in sales but also provided transparent insights into which channels were delivering the strongest ROI. Because retail media encompasses every touchpoint—from apps and websites to in-store digital displays—brands can engage consumers wherever they are, a crucial advantage in today’s unpredictable customer journey.

Retailers capitalizing on the shift

Retailers, too, are capitalizing on this shift. I’ve supported partners in evolving their advertising offerings from basic banner placements into sophisticated, high-margin platforms. One grocery client saw retail media revenue double year-over-year after we overhauled their audience segmentation and campaign management strategies. Personalizing ads to individual shopper preferences doesn’t just boost ad performance; it also enhances the overall customer experience, leading to increased loyalty and repeat business.

Challenges on the path forward

However, the path forward isn’t without its challenges. Data collaboration stands out as a particularly thorny issue. Brands are eager for deeper insights, but retailers are understandably protective of their data, creating a “data haves vs. have-nots” dynamic that can impede progress. Building trust and establishing clear agreements on data usage has been essential in launching successful campaigns. Measurement is another ongoing hurdle. While closed-loop reporting represents a significant advancement, attributing in-store sales to digital ads can be complex. Our team has developed custom frameworks that unify POS data with digital engagement metrics, but this approach requires both investment and a willingness to experiment. Additionally, the rapid proliferation of retail media networks has resulted in inconsistent standards and reporting formats, making campaign management increasingly difficult for brands operating across multiple platforms. Advocating for unified standards is critical to unlocking scalability and efficiency in this space.

The cusp of Retail Media 3.0

The industry is now on the cusp of what I call Retail Media 3.0. The focus is shifting from simply purchasing ad placements on retailer sites to building deeply integrated, omnichannel experiences powered by real-time data and AI-driven insights. There’s a notable surge in investment in programmatic technology and advanced analytics, enabling brands to redirect budgets from traditional platforms like Google and Meta into retail media, where they can capitalize on exclusive, point-of-sale data. The impact is already tangible. For instance, when we executed a combined digital and in-store campaign for a home electronics brand, their omnichannel conversion rate climbed by nearly 40% within a single quarter.

Transformative trends approaching 2025

As we approach 2025, several transformative trends are coming into sharper focus. First-party data is more valuable than ever, especially with tightening privacy regulations and the decline of third-party cookies. Brands that prioritize robust retailer partnerships and invest in technologies to activate this data will gain a significant competitive edge. In-store advertising is also set for explosive growth. Innovative tools like beacons, digital signage, and QR codes are turning physical locations into interactive brand stages. A recent project in which we deployed QR-enabled offers across multiple retail locations resulted in a notable uptick in foot traffic, with redemption rates doubling compared to traditional print coupons.

Retail media strategies beyond traditional retail

What’s particularly exciting is how retail media strategies are being adopted beyond traditional retail. I’ve advised travel and automotive brands eager to monetize their digital assets in similar ways, opening up new avenues for innovation and growth across different industries. At the same time, there’s encouraging momentum toward industry-wide standards for measurement and reporting. This progress will introduce much-needed transparency and foster stronger trust among advertisers. When everyone operates with a shared understanding, opportunities for collaboration and impactful results multiply.

Lessons learned and the path ahead

Over the years, one lesson stands out: retail media rewards those who collaborate closely, experiment boldly, and invest wisely in technology. The most successful campaigns are built on shared goals, transparent data practices, and a commitment to seamless shopper experiences. As retail media enters its next evolutionary phase, brands and retailers that embrace deeper partnerships, sophisticated measurement, and true omnichannel integration will be the ones setting the pace—and enjoying the greatest rewards. If you’re ready to elevate your growth strategy, now is the time to make retail media a core pillar and unleash your creativity. The results are clear for those willing to take the leap.