Top trends shaping retail media to reach USD $179.5bn
A new report released by Coresight Research, in collaboration with Criteo, sheds light on the top ten trends expected to shape the retail media landscape by 2025.
According to the report titled "Retail 2025: 10 Trends Shaping the Retail Media Market", the global retail media market is projected to reach USD $179.5 billion by 2025, with a year-over-year growth rate of 15.4%. Key factors contributing to this growth include third-party data, advancements in artificial intelligence (AI), and closed-loop attribution.
The report highlights that retail media networks (RMNs) have emerged as a lucrative asset for both brands and retailers. Coresight Research estimates that RMNs generate gross margins of around 70%. The availability of retailers' first-party data is a crucial component, allowing brands to develop and implement targeted, personalised advertising campaigns. Technologies such as AI and machine learning enhance the utility of this data by revealing insights that can maximise RMN benefits.
This trend is noticeable in the Asia-Pacific (APAC) region, where an increasing number of retailers are incorporating RMNs to generate additional revenue streams. For instance, David Jones, a prominent Australian retailer, has collaborated with Criteo to leverage its AI-driven platform for retail media initiatives. Through these means, brands can deploy personalised ad campaigns, including sponsored product advertisements on the David Jones website, thereby boosting product visibility and sales engagement with their premium clientele.
In India, Swiggy, an on-demand food delivery service, has partnered with Criteo to enhance its offsite retail media campaigns. This alliance proved beneficial for brands like Kellogg's, which reported an increase in conversions and attracted new customers. Kellogg's utilising Criteo's tracking capabilities, achieved a 1.9 return on advertising spend (ROAS) and a 25% new-to-brand rate, reaching over half of its target audience.
Deborah Weinswig, CEO of Coresight Research, commented on the trend: "Retailers that are seeing the most growth and that have been able to ride out the inflation storm and pullback of consumer spending with the least impact are those who have intelligently diversified their revenue streams and that have invested in developing advanced retail media networks."
Taranjeet Singh, Managing Director, Venture Markets, APAC, Criteo, remarked: "Asia Pacific's booming e-commerce landscape is fueling the rapid growth of retail media. This dynamic channel empowers brand advertisers with enhanced audience targeting and valuable customer insights, while enabling retailers to unlock new revenue streams and enrich the customer experience."
He added, "In 2025, retail media will evolve into a full-funnel solution, with retailers expanding into the open web, social media, and connected TV to engage shoppers at every stage of their journey. Strategic partnerships with media companies will continue to unlock new audiences, accelerating the shift from onsite toward offsite. Furthermore, with advancements in predictive analytics and machine learning, growing demands for transparency and standardised metrics will redefine collaboration between brands and retailers—capabilities that will be essential for success in the year ahead."
The report outlines ten trends under three categories: Innovation and Technology, Market Shifts, and Data and Measurement. Among these, AI is expected to facilitate next-generation ad automation and personalisation, while programmatic advertising is anticipated to enhance operational efficiencies across RMNs. Other trends include the expansion of ad formats, strategic partnerships for offsite growth, in-store retail media as a "test and learn" channel, and retail media's role as a comprehensive advertising tool.
The report also highlights the growing importance of building trust and transparency within RMNs, attention to measurement standardisation, and the impact of emerging RMNs disrupting the retail media ecosystem.
