Retail media networks (Retail Media Networks, or simply RMNs) have become a valuable asset for brands and retailers. According to a new report from Criteo, produced by Coresight Research, ‘Retail 2025: 10 Trends Shaping the Retail Media Market,’ available in English, the global retail media market will total $179.5 billion in 2025, representing a robust year-over-year growth of 15.4%. Third-party data, advances in AI (artificial intelligence), and closed-loop attribution are expected to drive rapid growth.
In recent years, more retailers have launched RMNs due to their high margin potential, which, according to the report, is estimated at 70% gross margin. Brands are increasingly investing in RMNs due to retailers’ first-party data, which allows them to create and deliver highly targeted and personalized advertising campaigns. Advanced technologies like AI and machine learning are further amplifying the value of this data, revealing new insights that help brands maximize the benefits of RMNs.
Retailers have a significant opportunity to increase RMN profits in 2025. However, this will require important actions to differentiate one network from another as competition grows. According to Criteo’s report, retailers, advertisers, and technology companies will need to focus on these 10 trends to maximize RMN opportunities from 2025 onward:
Innovation and Technology
- AI (Artificial Intelligence) to provide cutting-edge ad automation and personalization
- Programmatic advertising will drive operational efficiency across all RMNs
- Ad formats will continue to expand
- Strategic partnerships to unlock growth off-site
Market Changes
- In-store retail media will remain a ‘test and learn’ channel
- Retail media will strengthen its position as a full-funnel advertising tool
- Retail media will drive the enhancement of first-party data
Data and Measurement
- Building trust and transparency will be more critical than ever for RMNs
- Measurement standardization to gain attention
- Emerging RMNs will disrupt the retail media ecosystem
‘The retailers seeing the greatest growth and who have managed to weather the storm of inflation and consumer spending contraction with the least impact are those who have intelligently diversified their revenue streams and invested in developing advanced retail media networks,’ says Coresight CEO Deborah Weinswig.
‘AI enhancements have the potential to revolutionize retail media and will be the driver of the next big leap for the industry, creating new opportunities for brands and retailers,’ says Tiago Cardoso, Managing Director for Latin America at Criteo. ‘AI-based algorithms will enable prioritization of top-performing products and real-time bid optimization, maximizing advertising spend efficiency and replacing mere impressions with measurable results. With advances in predictive AI and machine learning, brands will be better positioned to anticipate consumer behavior and make real-time decisions.’
For additional insights on each of these trends, see the full report ‘Retail 2025: 10 Trends Shaping the Retail Media Market’ (available in English), click here.
