Report Finds Strong Appetite for DSP Buying in Retail Media
Fragmentation and complexity are stalling retail media investment — but giving advertisers access to demand-side platforms (DSPs) could change that, according to a new report from retail media tech provider Koddi.
The “State of Programmatic Retail Media” report, based on interviews with senior media buyers at 120 brands and agencies, explored the current state of programmatic capabilities in retail media and points to strong advertiser demand for a more streamlined, DSP-compatible buying experience.
Among the findings:
- 93% of advertisers said they would be more inclined to shift non-retail media budgets to retail media if DSP buying were available.
- 96% of agencies and 92% of brands are open to buying on-site retail media through DSPs.
- 79% of brands and agencies agreed that brands will eventually need to consolidate their retail media partnerships.
While retail media remains one of the fastest-growing digital advertising channels, 61% of buyers said the process can be painful. Koddi argued that enabling DSP access allows advertisers to tap into existing programmatic workflows — especially for agencies already built around these systems.
"Enabling DSP buying taps into an ecosystem that agencies are already built to navigate to support increased spend,” the company noted in a media release.
Operational efficiency and cost savings emerged as top factors. Eight in 10 buyers said they would find it easier to shift a larger share of retail media budgets to DSP-enabled retailers if on-site media could be purchased programmatically. Nearly half said it would trigger a significant shift in spend.
Looking ahead, 73% of respondents expect retail media to grow as a share of total ad budgets in 2025, with brands showing greater optimism than agencies.
Koddi maintains that improving access — without sacrificing control — is key for retailers.
“Retailers need to balance control with accessibility to attract additional media spend,” Nicholas Ward, co-founder and president of Koddi, said in the release. “By enabling DSP access to their environments, retailers aren’t just simplifying the buying process, they’re inviting deeper advertiser investment, growing incremental revenue, and future-proofing their media businesses in an ecosystem increasingly built around interoperability.”
About the Report: Koddi partnered with insight and strategy consultancy The Human Instinct to conduct interviews in March 2025 with senior media buyers and retail media decision-makers at 120 U.S. brands and agencies.
