{"id":20494,"date":"2024-12-09T15:23:00","date_gmt":"2024-12-09T20:23:00","guid":{"rendered":"https:\/\/illumin.com\/?p=20494"},"modified":"2025-03-13T14:55:43","modified_gmt":"2025-03-13T19:55:43","slug":"retail-media-advertising-2025","status":"publish","type":"post","link":"https:\/\/illumin.com\/insights\/guides\/retail-media-advertising-2025\/","title":{"rendered":"Are you ready for retail media advertising? What you need to know in 2025"},"content":{"rendered":"

Retail media is evolving.\u00a0 Here\u2019s what you need to understand the power of retail media advertising in 2025.\u00a0\u00a0<\/span><\/p>\n

2024 saw significant growth for the channel with brands<\/a> vying for greater connection to customers when and where they shop. In the US, ad spending for retail media was predicted to<\/span> grow 26% in 2024<\/span><\/a> \u2013 vastly outpacing the 12.6% growth predicted for overall digital ad spending. The medium is set to continue its trajectory in 2025, with projections estimating over $67 billion in ad spend, representing around 20% of total digital ad spending.<\/span><\/p>\n

So, what is retail media, why is it growing at such a high rate, and how can you leverage it for your brand?\u00a0<\/span><\/p>\n

What is retail media?<\/span><\/h2>\n

Simply put,<\/span> retail media<\/span><\/a> is the marketing of retail goods to consumers at the point of purchase. This could be in-store or online and ranges from online ads to in-store signage, free samples, loyalty card offerings, coupons, and more.\u00a0<\/span><\/p>\n

Retail media is constantly iterating. In today\u2019s landscape, the medium now includes a wide range of creative and engaging content from fleet media (vehicles decked out with<\/span> digital out-of-home ads<\/span><\/a>) and onsite videos like Walmart’s<\/span> \u201cRomCommcerce\u201d<\/span><\/a> Add to Heart<\/span><\/i> which it shared with customers during the 2023 holiday season.\u00a0<\/span><\/p>\n

What is a retail media network?<\/span><\/h3>\n

When talking about retail media, the topic of retail media networks (RMNs) is never far behind. This is because RMNs are on the rise, evidenced by their now crucial role in modern <\/span>programmatic advertising<\/span><\/a>.\u00a0<\/span><\/p>\n

As online shopping and e-commerce continue their dominance, retailers are using their growing digital channels to further connect and engage with <\/span>target audiences<\/span><\/a>. RMNs are a great way to do this.\u00a0<\/span><\/p>\n

A<\/span> retail media network<\/span><\/a> is a digital channel (including websites, apps, or in-store digital signage) operated by a specific retailer that provides space for third-party brands to advertise. Most of the time, it is a digital retail store with the ability to sell ad space to third-party brands.\u00a0<\/span><\/p>\n

The difference between retail media and retail media networks is that retail media refers to advertising owned by a retailer or leveraging retailer data. Meanwhile, a retail media network refers to the specific, retailer-owned channels that serve retail media advertisements.\u00a0<\/span><\/p>\n

Types of retail media advertising<\/span><\/h2>\n

There are various<\/span> retail media types<\/span><\/a> and examples of it. According to the<\/span> Interactive Advertising Bureau\u2019s Retail Media Buyer\u2019s Guide<\/span><\/a>, there are three main types of retail media ad types:<\/span><\/p>\n

On-site ads<\/span><\/h3>\n

On-site retail media ads are served on a retailer\u2019s platform. These include<\/span> display ads<\/span><\/a> and search ads. These can also include sponsored products (promoted listings in search results) and sponsored brands (banner ads within search results).\u00a0<\/span><\/p>\n

\"Walmart
On-site retail media on Walmart’s website<\/em><\/figcaption><\/figure>\n

Off-site ads<\/span><\/h3>\n

Off-site retail media ads leverage retailer data but are served through retail media partnerships.<\/span><\/p>\n

\"Off-site
Off-site retail media on Vogue’s website<\/em><\/figcaption><\/figure>\n

In-store ads<\/span><\/h3>\n

In-store retail media ads are within brick-and-mortar stores. These can be signs, flyers, or audio ads. <\/span><\/p>\n

\"in-store
In-store retail media ad for Twix<\/em><\/figcaption><\/figure>\n

The difference between offline retail media and online retail media<\/span><\/h2>\n

It\u2019s important to understand the differences between<\/span> offline and online retail media<\/span><\/a>, as each medium presents unique advantages for retailers.\u00a0<\/span><\/p>\n

Online retail media\u00a0<\/span><\/h3>\n
\"Costco
Online retail media on Costco’s website<\/em><\/figcaption><\/figure>\n

Online retail media refers to digital interactions via email, live chats, and social media. It can also refer to media hosted on e-commerce platforms. Audiences may or may not have also interacted with retailers in person.<\/span><\/p>\n

Offline retail media<\/span><\/h3>\n

Offline retail media, on the other hand, is media shown to audiences inside a physical store. It is a facet of brick-and-mortar retail that uses in-person interactions to provide distinct experiences. It can also be used to creatively tell stories while helping customers easily find the right product. In-store marketing lets advertisers connect with customers and build engagement organically. <\/span><\/p>\n

\"In-store,
Offline retail media ads in a drug store<\/em><\/figcaption><\/figure>\n

Benefits of retail media advertisement<\/span><\/h2>\n

There are several key benefits of retail media, namely that retail media networks connect advertisers to audiences directly at the point of sale. This close-to-purchase connection makes conversion more likely.\u00a0<\/span><\/p>\n

This isn\u2019t the only benefit of retail media. Other benefits to consider are:<\/span><\/p>\n