Exploring the Expansion of Retail Media Networks: Forecasts for 2025

Throughout the past year, the landscape of retail media networks (RMNs) has experienced the introduction of new in-store protocols and impressive growth. This positive trend is anticipated to persist. Below are several ways in which we foresee this evolving sector continuing to develop.

Expansion of In-Store Networks

“Although retail media networks have attracted some notice [in 2024], I still feel their complete potential is not fully realized,” commented Melanie Babcock, Vice President of Orange Apron Media and monetization at The Home Depot.

Last October, Home Depot’s RMN, Orange Apron Media, took a significant step by launching a self-service advertising platform known as Orange Access. Enhancing the usability of this platform for non-endemic brands will be a central focus in 2025. Last year marked Home Depot’s inaugural “InFronts” event for advertisers.

Babcock remarked, “In-store media networks remain a trending topic, yet many are still in the early stages of development across various retail media networks. The physical store provides considerable reach and the opportunity to present advertisements right at the moment of decision-making for customers. Often, these opportunities are overlooked due to the customized nature of in-store networks, which vary by retailer and depend on the specific store layouts.”

AI Enabling Integrated RMN Experiences

The primary aim of effective RMNs is to enhance the shopping journey for customers. Failure to do so risks alienating them. Consequently, RMNs are at the forefront of integrating online and offline channels. This holistic experience ensures customers receive quality service whether shopping on mobile, visiting a store, or watching ads on television. In 2025, anticipate AI to streamline the processes and workflows that support these integrated experiences.

Babcock added, “The adoption of interconnected shopping experiences has reshaped customer expectations — they now seek personalized interactions, diverse delivery options, and hassle-free returns. As we progress, AI will further elevate this interconnected experience, simplifying project planning and home management, which will ultimately transform the retail landscape by enhancing customer experience and operational effectiveness.”

Explore further: A comprehensive guide to Retail Media Networks

Emergence of Hybrid Retail Media Models

With many retailers gearing up to launch and refine their media initiatives in 2025, a significant number will likely opt for hybrid solutions. These models effectively combine proprietary technology with third-party services.

“Rather than overwhelming their IT resources with extensive platform developments, retailers will embrace structures that facilitate tailored program designs while maximizing their existing setups,” explained Aran Hamilton, CEO of RMN orchestration tech firm Vantage. “This methodology will foster quicker rollouts, scalable expansion, and enhanced strategic oversight, accelerating both acceptance and innovation within the sector.”

Growing Influence of Non-Retail Media Networks

With the maturation of RMNs and the increased ease for brands to launch their own networks, an influx of non-retail businesses is expected to join this trend. Terminology such as “commerce media” and “connected commerce” will become more mainstream as these brands seek to leverage their platforms.

“In 2025, we anticipate a notable rise in non-retail entities harnessing their first-party data to establish comprehensive ‘commerce media’ ecosystems,” stated Daniel Aks, President of the digital advertising firm Undertone. “Following the models pioneered by organizations like Chase and United Airlines, sectors such as finance, transportation, and hospitality are poised to adopt similar strategies. Despite not being traditional retailers, these companies hold extensive and valuable consumer insights — including purchase behaviors, travel preferences, and lifestyle choices — which can be utilized for targeted advertising.”

Data Collaboration and Secure Environments

The growing realm of RMNs in 2025 will heavily rely on data platforms and collaborative data efforts. This is crucial because effective multi-channel experiences and digital advertisements hinge on managing customer information in compliance with privacy standards.

“Retailers must emphasize building data collaboration frameworks that safeguard customer privacy while still optimizing performance, especially as the regulatory landscape surrounding privacy evolves,” advised Regina Ye, CEO and co-founder of Topsort, a retail media tech firm. “Integrative solutions like privacy-enhancing technologies (PETs) and secure data spaces will become commonplace, enabling brands and retailers to cooperate securely and foster trust.”

Data not only plays a vital role in crafting effective advertising experiences but also in evaluating them. To uphold privacy standards, the use of secure data environments will become more prevalent.

“Advertisers are still grappling with the complexities of evaluating ad impact across various ‘walled gardens’,” Matt Spiegel, EVP overseeing TruAudience growth strategy at TransUnion, noted. “Clean rooms are re-emerging as a strategic solution to this challenge, providing a secure shared space for multiple stakeholders to combine their data without losing ownership or control over it.”

Delve deeper: A beginner’s guide to Data Clean Rooms

Comprehensive Funnel Measurement

Return on ad spend (ROAS) evaluates the revenue generated through a campaign relative to its cost. By default, this focuses on immediate conversions from campaigns. However, as RMNs expand their influence, advertisers can also impact consumers earlier in the sales funnel. This year is likely to see RMN advertisers increasingly shift their focus toward these upper-funnel opportunities.

“Even though each retail media platform offers different benefits, the majority emphasize ROAS derived from conversions as the pivotal metric,” mentioned Harvey Ma, VP and General Manager of Sam’s Club Member Access Platform. “While I recognize the significance of this metric, it should not be the sole focus. Effective advertising should reflect not just attributable sales but also ongoing engagement and value over time. It’s crucial to align the metrics of success with specific contributing factors that can be accurately measured.”

Ma elaborated: “Metrics like purchase cycles, frequency of purchases, household reach, and audience preferences are critical and should be included in a long-term lifetime value KPI, particularly for brands aspiring for sustainable growth rather than merely short-term gains. In 2025, I foresee advertisers aligning their retail media metrics with broader business objectives beyond just ROAS.”