Over the last year, the RMN space saw <a href="https://martech.org/iab-finalizes-retail-media-networks-standards-for-in-store/">new in-store standards and solid growth. This is likely to continue. Here are a few ways we expect to see this dynamic space continue to mature.
Growing in-store networks
“While retail media networks have gained some attention [in 2024], I believe their full potential remains largely untapped,” said Melanie Babcock, Vice President, 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-ever “InFronts” advertiser event last year.
“In-store networks continue to be a hot trend, but are still very much in development for most retail media networks,” Babcock said. “The store represents significant reach and opportunity to introduce ads at the point of customer purchase decision. They are often overlooked because in-store networks are unique to each retailer and dependent on store environments.”
AI powering connected RMN experiences
The goal of successful RMNs is to improve the shopping experience for customers. If it doesn’t, the ads will alienate customers. So, in many ways, RMNs are leading the charge in bringing together different online and in-store channels. This unified experience helps customers get service whether they’re on mobile, in-store or viewing ads on TV. In 2025, look for AI to help automate the processes and workflows behind these experiences.
“The implementation of interconnected shopping experiences has transformed customer expectations — they want more personalized experiences, diverse delivery options, and simple returns,” said Babcock. “As we look ahead, AI will further enhance this interconnected experience by making project planning and home management significantly easier to initiate and accomplish, which will in turn transform the retail industry by raising the bar for customer experience and operational efficiency.”
Dig deeper: Retail media networks: What you need to know
Hybrid retail media programs
As more retailers plan to start and improve media programs in 2025, many will want hybrid models. These models mix in-house technology with third-party solutions.
“Rather than overburdening IT teams with full platform builds, retailers will adopt frameworks that support custom program design while leveraging existing infrastructure,” said Aran Hamilton, CEO of RMN orchestration technology company Vantage. “This approach will enable faster launches, scalable growth, and strategic control, resulting in accelerated adoption and innovation across the industry.”
Non-retail media networks surge
As the RMN space matures and it becomes easier for brands to launch RMNs, more non-retail brands will get in on the act. Terms like “commerce media” and “connected commerce” will gain wider acceptance to include these non-retail brands.
“In 2025, we can expect a surge in non-retail companies leveraging their first-party data to create robust ‘commerce media’ ecosystems,” said Daniel Aks, President of digital advertising company Undertone. “Building on the approaches taken by companies like Chase and United Airlines, industries such as financial services, transportation and hospitality are likely to follow suit. These companies, while not traditional retail sellers, possess vast troves of valuable consumer data — spanning purchase behaviors, 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 these multi-channel experiences and digital ads, and it has to 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 clean rooms will become the norm, allowing brands and retailers to securely collaborate and build trust.“
Data isn’t only essential for delivering effective ad experiences but also for measuring them. To ensure privacy, clean rooms will be used more widely.
“Advertisers continue to face challenges when it comes to assessing ad effectiveness across different ‘walled gardens’,” said Matt Spiegel, EVP of TruAudience growth strategy for TransUnion. “Clean rooms are resurging as a solution to this problem, by allowing multiple parties to combine data in a secure, shared environment — without transferring ownership or movement of the data.”
Dig deeper: Data clean rooms: A beginner’s guide
Full-funnel measurement
Return on ad spend (ROAS) measures the revenue (sales) generated by a campaign against the cost of the campaign. By definition, it focuses on lower-funnel purchases that result from the campaign. However, because of the growing reach of RMNs, customers can be influenced by advertisers higher up in the funnel. Expect RMN advertisers to shift focus to these upper-funnel gains in the new year.
“Despite each retail media platform having different advantages, the overwhelming majority prioritize ROAS, specifically generated from conversion as the most critical metric,” said Harvey Ma, VP and general manager of Sam’s Club Member Access Platform. “While I think it’s an important metric, it should not be the only one. Effective advertising and experiences should demonstrate attributable conversion, but also longitudinal engagement and value over time. More specifically, the factors contributing to success must be paired with suitable metrics that can best be measured against those factors.”
Ma added: “Purchase cycle, frequency, household penetration and audience propensity are among the many available metrics that should be considered and modeled in a longer-term, lifetime value measurement KPI that may be better suited for brands looking at sustainable growth vs. short-term share shifting. In 2025, I foresee advertisers aligning retail media measurement with their business objectives beyond ROAS.”
The post Retail media networks continue to grow: 2025 predictions appeared first on MarTech.
