5 Ways Retail Media Will Evolve in 2025
Retail media is at an inflection point. It has grown from a niche advertising channel into a critical pillar of the broader media ecosystem. It’s expected to account for nearly a quarter of all U.S. media spend by 2028. But as we enter 2025, the landscape is gearing up for further transformation that will redefine how brands, retailers, and agencies collaborate to deliver value to consumers.
Here are my five predictions for how retail media will evolve in 2025.
1. Omnichannel Will Be the New Standard
The days of siloed retail media strategies are numbered. By the end of 2025, the best retail media strategies will seamlessly integrate in-store, on-site, and off-site channels to create unified, omnichannel experiences for consumers. These truly connected omnichannel experiences will reach shoppers across their path to purchase in the right places, at the right times, with the right message.
Brands are already experimenting with blending digital and physical environments. In-store advertising — long neglected, particularly in North America — is finally starting to see a resurgence, thanks in part to cost-effective in-store technologies. Interactive displays, integrated in-store audio, AI-driven personalization, and even analog media like cardboard and vinyl stickers create impactful and measurable in-store moments. Meanwhile, leveraging first-party data across off-site channels as part of an omnichannel strategy will enable retailers to engage shoppers at numerous touchpoints in their shopping journey.
Retail media networks (RMNs) that embrace this shift will move beyond simply selling ad space. At SMG, we always say, “Retail media is not ad sales.” Instead, retailers that focus on creating cohesive brand experiences that make the shopping journey effortless and engaging will win.
2. Transparency and Measurement Will Take Center Stage
Measurement and transparency have been persistent challenges in retail media, but there is a brighter future ahead in 2025. Industry bodies like the IAB have brought together the biggest players and the brightest minds to craft standards and recommendations to improve measurement industry-wide. As brands allocate more of their budgets to RMNs, the demand for consistent and reliable metrics will grow. RMNs without robust measurement capabilities will struggle to keep up.
As I wrote for P2PI earlier this year, the key is transparency — not necessarily complete standardization. Not every retailer will agree on how to measure success, and that’s especially true across verticals. For instance, what works for grocery chains won’t necessarily apply to pharmacy or e-commerce platforms. Nuance will be critical, but so will trust. Retailers that provide transparent reporting will win long-term partnerships with brands and unlock lucrative ad dollars.
Transparency isn’t just about the numbers — it’s about accountability to both brands and consumers. At SMG, we believe in this transparency because we shouldn’t put advertising dollars toward strategies that aren’t working, as that fails to drive sales for the retailer, deliver ROI or ROAS for the brand, or create value for the consumer.
Retail media, when done right, should enhance the shopping experience — whether digital or in-store — while also lifting sales. Transparent measurement helps us achieve that goal by ensuring strategies resonate with shoppers.
3. AI Will Unlock the Next Wave of Innovation
Over the past year, we’ve heard a lot of talk about AI. It’s become a cross-industry buzzword, with everyone claiming their offering is somehow powered by it. But talk is cheap, and 2025 will separate those who actually deploy innovative technology and drive results from those who just talk about it.
That said, I am confident AI will be transformative for retail media. A key point: AI is not something to be feared. While some worry it will replace human decision-makers, that’s not how we approach it at SMG. We see AI as a tool to automate arduous tasks and contextualize data in ways that make it easier for human experts to act on.
In 2024, we implemented AI into Plan-Apps, our retail media management technology that powers RMNs for major retailers like Walgreens Boots, Co-op, Morrisons and Asda. AI helps us analyze campaign evaluation data and provides insights that enable retailers and brand advertisers to better plan for future campaigns. It’s incredibly exciting.
AI will also transform how shoppers interact with brands. Imagine personalized product recommendations in real-time as consumers browse a retailer’s site — or dynamic, AI-powered content displays in-store that adapt based on location, weather, or shopper demographics.
AI won’t replace human creativity; it will enhance it. It allows teams to focus on high-value tasks like crafting innovative campaigns and solving complex challenges. At SMG, our human retail media experts will remain the decision-makers — AI is just a tool to amplify their expertise.
4. ‘Commerce Media’ Encroaches on ‘Retail Media’
One of the most exciting shifts we’re seeing is the rise of "commerce media." This broader evolution of retail media encompasses any business that owns rich first-party data and consumer interactions — not just traditional retailers.
In 2024, we saw companies like United Airlines, Expedia, and PayPal enter the space once exclusively called retail media. In 2025, we expect to see even more businesses — from travel to finance — join the race. These players bring unique opportunities to reach consumers beyond traditional retail environments, opening up new avenues for advertisers, including non-endemic advertisers who typically avoid retail media.
This expansion underscores an important trend: Retail media is no longer a niche channel. It’s becoming a mainstream part of the media mix, challenging — and integrating with — traditional advertising channels like TV and search. If you are a business that facilitates digital and/or on-premise transactions, you have a valuable supply and data in a media business waiting to be unlocked in 2025.
Retailers and brands that adapt to this broader ecosystem will be best positioned to succeed. Retail media is media.
5. Creative Storytelling Will Define the Future
Retail media is evolving from transactional to experiential. By this time next year, creativity will be at the heart of every successful retail media strategy (I hope!).
Consumers don’t distinguish between retail media, brand marketing, or shopper marketing — they see a single, unified narrative. To meet these expectations, retailers, brands, and agencies must focus on delivering consistent, impactful storytelling across the entire shopper journey, from awareness to conversion and loyalty.
In-store environments will play a key role. Innovations like shoppable displays, experiences enabling sampling and trial, and immersive digital technologies will transform physical retail into a canvas for creative storytelling. Meanwhile, off-site campaigns will leverage first-party data to deliver highly personalized, relevant messages when consumers are away from the store.
The key takeaway? Creativity isn’t a “nice-to-have” in retail media — it’s a necessity. Retailers that invest in agency-style creative thinking, treat brands as clients rather than customers, and craft campaigns with the shopper at the center will set themselves apart and drive greater value.
Looking Ahead
As we approach 2025, the retail media landscape will continue to evolve. The integration of omnichannel strategies, advancements in AI, and the rise of commerce media are already in full swing. But at its core, the success of retail media will depend on collaboration — between retailers, brands, agencies, and technology partners.
The potential is enormous. By embracing — and not fearing — these shifts, we can create a retail media ecosystem that delivers for everyone: smarter campaigns for brands, new revenue streams for retailers and other first-party data holders, and better shopping experiences for consumers.
The future of retail media is bright, and I can’t wait to see where it takes us.
About the Author
Sean Crawford is the Managing Director for North America at SMG, a network of global retail media experts responsible for more than 10 RMNs. Crawford is the driving force and face behind SMG’s North American expansion, which began in 2023 and has already seen the agency consult with four major retailers in the U.S. It will announce its founding North American retail media network client partner in January 2025.
Crawford was recently awarded the 40 Under 40 award from the Path to Purchase Institute, which honors the next generation of leaders in omnichannel marketing. As a retail media thought leader, he has presented at numerous industry events in the U.K. and North America and has been published by the industry press, where he is frequently called on to share his decade-plus experience as a retail media pioneer.
Prior to leading SMG’s efforts in the U.S. and Canada, Crawford was most recently business director for SMG’s Capture agency, where he led a team of 30 media experts and oversaw the brand’s transition from a shopper agency to a full-fledged media planning, buying, and management commerce agency. Representing clients like General Mills, Kellogg and Pladis, he also led SMG’s central Media division, which houses all retail media buying and established key strategic partnerships with major media players like The Trade Desk, Criteo and JCDecaux.