In recent years, retail media has emerged as one of the fastest-growing sectors in digital marketing, fueled by a convergence of e-commerce growth, data-driven marketing, and retailers’ need to diversify revenue streams. 

As we move into 2025, retail media is poised to see transformative changes that will redefine how brands, retailers, and consumers interact. The following trends reflect key shifts likely to shape the landscape of retail media, from advanced AI-driven targeting to sustainability-focused advertising. Here’s a look at the retail media trends to watch in 2025.

Rise of AI-Enhanced Advertising and Personalization

Artificial intelligence and machine learning are becoming foundational to retail media strategies, particularly as brands and retailers seek ways to personalize experiences at scale. In 2025, AI will increasingly drive advanced targeting capabilities, predicting consumer behaviors with even greater precision. Tools such as recommendation engines and automated ad creatives are becoming more intelligent, leveraging data points like browsing behavior, purchase history, and engagement patterns to tailor ads to individual preferences.

This shift means that retail media platforms will continue to evolve, offering brands unprecedented levels of personalization that can boost engagement and ROI. AI will also improve automated bidding strategies, helping advertisers maximize their budgets by dynamically adjusting bids based on real-time insights into consumer behavior. As a result, the retail media experience will become not just personalized, but proactive, meeting consumers at moments of intent across their online journeys.

Shoppable Video Content: The Fusion of Content and Commerce

Shoppable video is gaining momentum as a powerful tool in retail media, especially as consumers increasingly expect seamless and engaging experiences. Platforms like TikTok, YouTube, and Instagram have pioneered this approach, allowing consumers to purchase products directly from video content. In 2025, we can expect even more brands to invest in shoppable video content on retail media networks. For example, brands may leverage interactive, live-streamed shopping events hosted directly on retailer platforms, creating a dynamic and immersive path to purchase.

Additionally, with the help of advanced AI, videos will become more interactive and personalized, delivering content tailored to each viewer’s preferences. Retailers will likely develop their own proprietary shoppable video content ecosystems, giving them an edge in maintaining customer loyalty and increasing sales. This trend signifies a future where the lines between content, commerce, and entertainment continue to blur, providing an engaging medium for consumers while driving meaningful results for brands.

The Expansion of Retail Media Beyond E-commerce

Retail media was once primarily limited to online platforms, but by 2025, it will have evolved into an omnichannel powerhouse. Leading retailers are bringing their media networks into physical stores, transforming them into touchpoints for digital engagement. Using technologies like digital shelf displays, interactive kiosks, and smart shopping carts, retailers are extending the capabilities of their media networks to reach consumers at every stage of their shopping journey.

This omnichannel approach enables brands to interact with consumers in real-time, delivering targeted offers and product information even as they browse aisles in-store. Additionally, connected store environments allow retailers to gather in-depth data on offline shopping behavior, which can be fed back into digital campaigns to refine targeting further. The ability to reach consumers across both online and offline channels offers brands and retailers a holistic view of the customer journey, ultimately leading to higher engagement and conversions.

Increased Focus on First-Party Data Utilization

With privacy regulations becoming stricter and third-party cookies facing obsolescence, retailers are doubling down on their first-party data assets. First-party data—information collected directly from consumers, such as purchase history and loyalty program data—has become incredibly valuable for retail media networks looking to offer advertisers unique and effective targeting options.

In 2025, we will see retailers investing in data management platforms that allow them to organize and analyze this data for deeper insights. By integrating AI and machine learning tools, retailers will transform first-party data into a rich asset that brands can leverage for more precise targeting and personalization. Retailers will also expand partnerships with brands, enabling them to access customer insights through secure, privacy-compliant methods. This trend underscores the shift from third-party dependency toward more reliable, consent-driven data sources, which is increasingly important in a world where consumer privacy is paramount.

Enhanced Attribution Models and Measurement Standards

One of the biggest challenges in retail media has been accurately measuring ROI and attributing conversions. Retailers and brands have been calling for standardized metrics that allow them to understand the true value of their retail media investments. In 2025, we’ll see advancements in attribution models, allowing for a more accurate analysis of the entire shopper journey.

New tools and technologies will provide granular insights into how ads influence consumer actions, from clicks to in-store purchases. Multi-touch attribution models will gain traction, offering a broader perspective on the impact of retail media on brand performance. Additionally, the push for transparency and consistent measurement standards will lead to collaborations across the industry, as stakeholders work to establish benchmarks that make it easier to compare retail media with other advertising channels. This will empower brands with actionable insights, allowing them to make data-driven decisions that optimize their retail media strategies.

Programmatic Retail Media Buying

Programmatic advertising has long been a staple in digital marketing, but its application within retail media services is rapidly evolving. In 2025, programmatic retail media buying will become mainstream, offering brands more flexibility, speed, and targeting precision. Retailers will integrate programmatic capabilities into their media networks, allowing advertisers to automate ad placements across their digital and physical touchpoints.

This shift will also facilitate real-time optimization, as brands can adjust campaigns on the fly based on performance insights. The automation of retail media buying will further enable smaller brands to compete, giving them access to tools that can help level the playing field. As programmatic becomes more prevalent, retail media networks will be able to scale their offerings, increasing the number of available ad placements and targeting capabilities, thereby driving more competitive auction dynamics.

Conclusion

The retail media landscape in 2025 will be defined by a convergence of technology, consumer demand for personalization, and a shift toward data-driven strategies that respect privacy. With advancements in AI, an omnichannel approach, and an emphasis on sustainability, retail media will continue to expand as a vital part of brands’ digital marketing strategies. 

For brands and retailers, staying ahead of these trends will be essential in delivering relevant, engaging, and value-driven experiences that meet the evolving expectations of modern consumers.