Retail media networks continue to grow: 2025 predictions

Over the past year, the NMR space has seen new standards in stores and solid growth. This is likely to continue. Here are a few ways we expect this dynamic space to continue to mature.

Growing networks within stores

“While retail media networks have gained some attention [in 2024]I believe their full potential remains largely untapped,” said Melanie Babcock, vice president of Orange Apron media and monetization at The Home Depot.

Orange Apron Media, Home Depot’s RMN, launched a self-service platform for advertisers last October called Orange Access. Improving this experience, especially for non-endemic brands, will continue to be a priority for 2025. Home Depot hosted its first “InFronts” advertiser event last year.

“In-store networks continue to be a hot trend, but they are still in development for most retail media networks,” Babcock said. “The store represents a significant reach and an opportunity to introduce ads at the moment of the customer’s purchase decision. They are often overlooked because in-store networks are unique to each retailer and depend on the store environment.”

AI powers connected NMR experiences

The goal of successful RMNs is to improve the shopping experience for customers. If this doesn’t happen, the ads will alienate customers. So in many ways, RMNs are leading the way in bringing together different channels online and in stores. This unified experience helps customers get the service whether they’re on a mobile device, in-store or watching ads on TV. In 2025, look for artificial intelligence to help automate the processes and workflows behind these experiences.

“The implementation of interconnected shopping experiences has changed customer expectations – they want more personalized experiences, diverse delivery options and easy returns,” said Babcock. “Looking ahead, AI will further enhance this interconnected experience by making project planning and home management much easier to initiate and achieve, which in turn will transform the retail industry by raising the bar on customer experience and operational efficiency.”

Dig deeper: Retail media networks: What you need to know

As more retailers plan to launch and improve media programs in 2025, many will want hybrid models. These models combine in-house technology with third-party solutions.

“Instead of overwhelming IT teams with full platform builds, marketers will adopt frameworks that support custom program design while leveraging existing infrastructure,” said Aran Hamilton, CEO of RMN technology orchestration company Vantage. “This approach will enable faster launch, scalable growth and strategic control, resulting in accelerated adoption and innovation across the industry.”

As the RMN space matures and it becomes easier for brands to launch RMNs, more non-retail brands will get in on the action. Terms such as “retail media” and “connected commerce” will gain wider acceptance to include those non-retail brands.

“In 2025, we can expect an increase in non-retail companies leveraging their first-party data to create robust ‘commercial media’ ecosystems,” said Daniel Aks, president of digital advertising firm Undertone. “Building on the approaches of companies like Chase and United Airlines, industries like financial services, transportation and hospitality are likely to follow suit. These companies, while not traditional retailers, possess a vast trove of valuable consumer data — including purchasing behavior, travel habits and lifestyle preferences — that can be monetized for targeted advertising.”

Clean rooms and data collaboration

Data platforms and data collaborations will be a big part of the growing RMN space in 2025. That’s because customer data connects those omnichannel experiences and digital ads, and it must be managed in a privacy-compliant way.

“Retailers will need to prioritize data collaboration frameworks that maintain customer privacy while optimizing for results, especially as privacy regulations evolve,” said Regina Ye, CEO and co-founder of retail media technology company Topsort. “Solutions such as privacy-enhancing technologies (PETs) and cleanrooms will become the norm, enabling brands and retailers to collaborate securely and build trust.”

Data is not only important for delivering effective ad experiences, but also for measuring them. In order to ensure privacy, clean rooms will be used more.

“Advertisers continue to face challenges when it comes to evaluating ad performance across different ‘walled gardens,'” said Matt Spiegel, EVP of TruAudience Growth Strategy for TransUnion. “Cleanrooms are re-emerging as a solution to this problem, allowing multiple parties to combine data in a secure, shared environment—without transferring ownership or data movement.”

Dig deeper: Data Cleanrooms: A Beginner’s Guide

Measurement of the entire funnel

Return on advertising investment (ROAS) measures the revenue (sales) generated by a campaign relative to the cost of the campaign. By definition, it focuses on downstream purchases resulting from a campaign. However, due to the increasing reach of RMNs, customers may be influenced by advertisers who are higher in the funnel. Expect RMN advertisers to focus on these top-of-funnel gains in the new year.

“While each retail media platform has different strengths, the vast majority prioritize ROAS, specifically conversion-generated, as the most critical metric,” said Harvey Ma, vice president and general manager of Sam’s Club Member Access Platform. “While I think it’s an important indicator, it shouldn’t be the only one. Effective advertising and experiences should demonstrate attributable conversion, but also longitudinal engagement and value over time. More specifically, the factors that contribute to success must be matched with the appropriate metrics that best measure those factors.”

Ma added: “Purchase cycle, frequency, household penetration and audience propensity are among the many available metrics to consider and model into a longer-term KPI to measure long-term value that may be more appropriate for brands looking at sustainable growth compared to short-term. – term share shifting. In 2025, I predict advertisers will align retail media measurement with their business goals beyond ROAS.”