Ready to elevate your 2025 retail media strategy? Discover the essential trends and proven best practices every marketer and retailer should know — from building a powerful retail media network to leveraging data clean rooms and accurately measuring success.
Retail Media is no longer just a buzzword: Retail Media is a multi-billion dollar pillar of the advertising industry and one of the fastest-growing sectors in digital marketing.
With US retail media ad spend projected to reach $100 billion in 2028, and ad spend on track to surpass traditional TV by the end of 2025, understanding and leveraging this ecosystem is no longer optional for brands and retailers alike—it is a strategic imperative. The shift in consumer behavior toward digital storefronts has created a new, high-margin revenue stream for retailers and a powerful, performance-driven channel for advertisers.
In this in-depth guide, we’ll explore what retail media is, why it’s a crucial part of today’s marketing landscape, how to craft an effective strategy, and the major trends shaping its evolution in 2025.
Retail media is the monetization of a retailer's digital properties and valuable first-party data. It allows advertisers to engage with shoppers at every stage of the customer journey, using direct insights into their shopping habits and future purchase intent. Unlike traditional advertising, retail media ties ad exposure directly to the point of purchase, creating a more seamless and measurable path to conversion.
Retail media advertising has evolved far beyond its original scope of ads appearing solely on a retailer’s own website. Today, it includes highly sophisticated campaigns delivered both on-site—through the retailer’s website or app—and off-site, across the broader internet.
This versatility, combined with the power of first-party data, is fueling rapid growth in the space. On-site ads, such as sponsored products, offer prime visibility and are closely tied to the point of purchase. Meanwhile, off-site campaigns enable retailers to scale their advertising efforts and engage consumers across the web, wherever they may be.
While the terms are often used interchangeably, commerce media is the broader umbrella term under which retail media operates.
In short, all retail media is commerce media, but not all commerce media is retail media. Retail media is a specific and highly effective subset that benefits from the direct, closed-loop nature of the retailer-shopper relationship.
The growth of retail media is fueled by several important factors:
Uncover what marketers need to know about the evolving retail media landscape in our exclusive report with eMarketer.
While the terms are often used interchangeably, there is a key distinction.
RMNs provide the necessary infrastructure to collect, segment, and activate first-party data, simplifying the process for both brands and retailers. Partnering with a third-party tech provider like Equativ is a smart strategy for any retailer looking to build a robust retail media solution. It simplifies implementation and provides access to advanced capabilities without the need for significant in-house investment.
For example, Equativ offers a Supply-Side Platform (SSP) and monetization solutions for both on-site and off-site retail media advertising. This allows retailers to maintain control over their data while monetizing their audiences on a global scale, enabling them to develop a comprehensive retail media strategy without the burden of building the technology from scratch.
In a privacy-first, cookieless environment, first-party data powers retail media. It enables precise targeting based on consumers’ actual shopping behavior and purchase intent, rather than inferred information. This level of insight allows for the creation of highly relevant and effective advertising.
Activating this data at scale while maintaining privacy is a significant challenge. This is where data clean rooms play a crucial role. A data clean room is a secure, privacy-compliant environment where multiple parties—such as retailers, brands, and publishers—can collaborate and match audiences without ever exposing sensitive customer information. The combination of data clean rooms and retail media solutions is accelerating the growth of cookieless advertising and establishing a new industry standard.
A great example is Danone’s partnership with a retail media network to target loyal shoppers, resulting in significant growth. By utilizing a secure data clean room, they were able to tap into the retailer’s first-party data for a campaign that delivered clear, measurable results—all while maintaining consumer trust.
Building a retail media strategy can seem daunting, but its success hinges on three key pillars: data, technology, and partnerships.
First, understand and define your first-party data assets. What customer insights do you already have access to? Consider the depth and breadth of your data—from purchase history and browsing behavior to demographic details and loyalty program information. The key is to segment this data into meaningful audience groups that advertisers will find valuable. Well-defined segments enable more precise targeting and higher campaign effectiveness, making your data a powerful asset.
Next, selecting the right technology is critical. Partnering with a reliable third-party tech provider is often the fastest and most efficient way to build a scalable retail media solution. This approach eliminates the need for extensive internal development, accelerating your time to market. The technology you choose should support both on-site and off-site monetization, giving brands a full spectrum of advertising opportunities across your digital properties and beyond. Additionally, it should include privacy-compliant tools, such as data clean rooms, to ensure secure and responsible data activation.
Finally, focus on building strong, strategic partnerships. Identify brands that can benefit most from your first-party data and tailor comprehensive retail media advertising packages to meet their needs. These partnerships not only drive revenue but also deepen relationships, creating long-term value for both retailers and advertisers. Collaborating closely with brands and technology providers helps optimize campaigns and unlock new growth opportunities.
By prioritizing these three pillars—leveraging rich first-party data, adopting the right technology, and cultivating strategic partnerships—retailers can transform their digital assets into a powerful, profitable retail media business that delivers measurable results while respecting consumer privacy.
A successful retail media strategy relies on precise audience segmentation and a diverse range of ad formats.
As the foundational element of many on-site retail media strategies, sponsored product ads are a vital component for both brands and retailers. These native ads, which seamlessly blend into a retailer's search results and product listings, are designed to catch the eye of shoppers who already have high purchase intent. Distinct from traditional display ads, they leverage keyword-based targeting to place products directly in front of interested buyers at the most critical moment of their shopping journey—the point of search.
According to eMarketer, advertiser spending on these ads alone is projected to exceed $38 billion in 2025, demonstrating their immense value. For retailers, they are a powerful tool for on-site monetization, while for brands, they offer a direct path to driving sales, boosting product visibility, and gathering valuable performance data. Ultimately, sponsored product ads are an ideal starting point for anyone looking to build a robust retail media program.
One of the biggest advantages of retail media is its measurability. The closed-loop ecosystem provides a direct line of sight between ad spend and sales outcomes. Key performance indicators (KPIs) to track include:
The retail media landscape is evolving rapidly, driven by technological innovation and shifting consumer behaviors. Here are the key trends to watch for in 2025 in the retail media ecosystem:
The rapid adoption of Connected TV (CTV) has paved the way for shoppable TV ads. As detailed in our article Q&A: The power of shoppable TV ads, these ads enable consumers to purchase a product they see on screen directly, instantly transforming the TV into a point of sale. For retailers, this creates a new revenue stream, serves as a source of invaluable first-party data, and offers a seamless path to purchase. For brands, it delivers a highly engaging and measurable way to reach consumers in their living rooms. The potential for retail media to integrate with CTV is immense, creating a powerful and seamless cross-channel experience.
Curation is a powerful strategy that allows retailers to package their inventory and audience data into private deals for advertisers. As we highlighted in our article Why now is the time to embrace curation, research shows that even in its early stages, curation accounts for a significant portion of publishers’ programmatic revenues. This approach simplifies access to premium data and inventory, enabling retailers to monetize their first-party data at scale while maintaining full control. This method streamlines access to premium data and inventory, allowing retailers to monetize their first-party data at scale while retaining complete control. The result is a more efficient, targeted retail media advertising approach that benefits both buyers and sellers. Curation has become a vital element of advanced retail media solutions today.
The rise of walled gardens has created fragmentation in the industry. As the retail media market matures, there will be a strong push for greater interoperability between data clean rooms and retail media platforms. This integration will allow for more fluid collaboration between brands and retailers, creating a more cohesive and effective advertising ecosystem. The ultimate aim is to create a more open, connected retail media environment that delivers benefits for all stakeholders.
Underestimating the Importance of Data Privacy Compliance
With tightening regulations such as GDPR and CCPA, prioritizing consumer privacy is non-negotiable. Failing to comply can result in legal penalties and loss of consumer trust. Equativ’s privacy-first solutions, including secure data clean rooms, help retailers and brands activate first-party data safely and in full compliance, ensuring that privacy remains at the forefront of retail media efforts.
Ignoring Cross-Channel Integration
Retail media performs best as part of a unified marketing strategy. Treating it as a standalone channel limits its effectiveness. Equativ’s platform supports seamless integration across multiple channels—including online, in-store, Connected TV (CTV), and social—enabling retailers and brands to deliver a cohesive customer experience and maximize impact.
Lack of Clear Measurement Frameworks
Without well-defined KPIs and transparent reporting, it’s difficult to prove the value of retail media or optimize campaigns. Metrics like Return on Ad Spend (ROAS), sales attribution, and Customer Lifetime Value (CLV) are essential. Equativ’s advanced analytics and measurement tools provide retailers with actionable insights to continuously improve performance and demonstrate clear ROI.
Overcomplicating the Technology Stack
Retail media technology is evolving rapidly, but layering on too many complex platforms can slow progress and increase costs. Equativ offers scalable, easy-to-integrate solutions designed to simplify the tech stack, reduce overhead, and future-proof retail media operations.
Neglecting Partner Collaboration
Successful retail media depends heavily on strong partnerships—not just between retailers and brands but also with technology providers and data partners. Poor collaboration can lead to missed opportunities, inefficient campaigns, and slower growth. Investing in transparent, strategic relationships is essential.
What is the difference between retail media and traditional advertising?
Retail media leverages a retailer's valuable first-party data for targeting, which provides a level of precision and direct sales attribution that traditional advertising cannot match. By linking ads directly to actual purchasing behavior, retail media becomes a highly efficient and measurable channel.
What are the main benefits of retail media for brands?
Brands gain access to highly qualified audiences with strong purchase intent, benefit from more accurate campaign measurement, and drive sales more effectively. Retail media is a powerful tool for both customer acquisition and retention, making it an essential component of any modern marketing strategy.
Can Equativ help me build a retail media network?
Absolutely. Equativ offers the technology and infrastructure needed for publishers and retailers to build, manage, and scale their own retail media networks. Our platform provides end-to-end retail media solutions, enabling partners to monetize first-party data and unlock new revenue opportunities.
Retail media is not just the future of advertising; it is the present. The path to a successful retail media strategy lies in leveraging first-party data, embracing innovative formats like shoppable TV, and partnering with the right technology. By understanding its nuances, retailers can unlock a significant new source of revenue while providing brands with unparalleled marketing effectiveness.
This commitment to innovation is a core part of Equativ’s mission. To further accelerate our capabilities and provide the most comprehensive retail media solutions, we recently strategically acquired Kamino Retail, a leading technology provider in this space. This acquisition enhances our ability to activate first-party data and offer holistic on-site and off-site retail media advertising capabilities, solidifying our role as a trusted partner for retailers and brands navigating this rapidly evolving ecosystem.
As Director of Marketing and Communications at Equativ, Amy leads the company’s owned content, social media, and public relations strategies. Collaborating with stakeholders across the organization, she writes on topics ranging from Equativ’s product innovations to broader industry trends.
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